Yes, Facebook continues to have meteoric growth. But it's also bleeding millions of dollars with no proven business model. So, how does it make money? One obvious way would be to charge a nominal fee per month. But how much is kosher?
Executive Editor David Carnoy has been covering electronics for CNET since 2000, arriving at the company just as "that whole Internet bust thing" happened. Early on, he launched CNET's cell phone coverage, earning him the nickname "Wireless Dave," then moved on to bigger and broader things. Hunkered down in New York City, he oversees CNET's Home and Hardware reviews, which includes all things related to home theater, PC, and digital imaging. Fully Equipped covers the gamut of gadgets and gizmos and, to keep things lively, Carnoy likes to alternate between writing useful, advice-oriented pieces or thought-provoking columns with inflammatory headlines designed to elicit commentary from readers. Fully Equipped is the longest continuously running column on CNET.com.
For older columns, read the Fully Equipped archive (2002-2008).
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The issue that we all know is that Facebook would not remain unchanged (and I would guess is one of the main reasons people woudn't pay), which would devalue the site greatly. It would be better for Facebook to work more closely with businesses that have created fan pages to allow them to build those out to become more valuable to the business. Maybe start now by creating fan page targeted applications that would create value for businesses and charge a fee. The fee would have to be low at this point since most businesses are still trying to find a good way to prove social media is valuable (we know it is...but how valuable?). I don't have all the answers, but instilling value to places that would pay (i.e. businesses) is going to be a better route than trying to bill the users.
Facebook has created a great website that attracts millions of people. Now they need to find a creative way for businesses to interact and generate revenue. This will be the profit generator for Facebook...not targeted pop up ads or billing users.
Must be nice living in fantasy land. Out here in the real world, businesses are built to provide a service or fill a need. Optimally, the people that use that service pay for it. In a less perfect world, you let them use it for free,but use sponsorships to fund it. You wouldn't expect your mechanic to fix your car for free because he's got a bunch of Pennzoil posters on his wall, would you? Just because you can physically touch the car and prove that it got fixed doesn't make his service any more or less valuable than what facebook (or twitter, or myspace, etc) does. Both are providing a much sought after service. For some reason, though, everyone's got this notion that if it's online, it's got to be free.
And to answer this question: "How many businesses provide absolutely nothing of value and expect people to pay for it?" -- the answer is easy. "Value" is subjective. You may find no value in Facebook (and quite frankly, neither do I), but millions of people do. To them, the very notion of having someone that gives a crap what their cat is up to, or what celebrity they look like has tremendous value.
I'm tired of the "me, me, me, everything for me and make it free" entitlement mentality that's so pervasive in this country and especially online.
And I'm in college. We're (theoretically) the target audience.
No I would not pay, but many would.
I use Facebook frequently, as do most of my friends and family, but none of us would use if if they charged. Even if it were only $1, I wouldn't use it.
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by dinjin201
April 17, 2009 2:37 PM PDT
- I think the best idea is to charge $10 a year, but make it an OPTION!!!!
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Showing 2 of 7 pages (181 Comments)for paying users:
1. NO ADS. - this would greatly increase the speed at which they could access the website.
2. Mabye, make a chat room interface.
For non paying users....
1. Keep the ads... get some more ads.
2. maybe un upload limit for photos, and videos you are allowd to store?