Why Is This a Bad Business?

Companies are trying to better organize the people you talk to in your life and stay on top of keeping those connections warm. In theory, it makes a ton of sense but why is this a bad business? I don't think that achieving product market fit on a product like this would be super easy because i don't know that the need is there. If you asked me, could you find a hundred thousand people paying a hundred dollars a year which makes this a ten million dollar business? How easy would that be?