The Rise and Fall of Facebook

With the current changes in the layout of Facebook last week. Which has caused consternation in the community. I was going to write my own post about it, but than I came across this article written by Jason Lee Miller.

Which raised the same issues that  I was thinking about. The crux of the problem is that not enough people are clicking on the advertisements on their profile page. Running Facebook is not cheap. One can only hazard a guess at the number of transactions that our carried out daily on their servers, but I would put it in the hundred million for sure.

Everybody was having a good old time on FaceBook. Posting links to their new website, project, photographs etc. Of course they  thought it was all free. Well it looks like the free lunch is over. I would personal start clicking  on the advertisements but I do not think that would solve the problem, unless one brought what was on offer.

So what are the other options? Paid subscription service might work… May be we really have started to see the decline of the social network advertising model. Facebook are unique in that both Linkedkin and Xing offer paid subscriptions model. Of the two only Linkedkin is making any money. In fact Linkedkin is the only cash postive social media site that I know off.

Below is excerpt from the blog post by Jason available here here

“What do you do?

Do you:

A.    Don’t fix something that’s not broken. And by not broken, it means that meteoric growth over the past year led your site to trounce MySpace and every sensitive person on the site is relatively happy in their social networking habitat.
B.    Ignore that a growing number of people seem to like an incomprehensible platform much like a feature you already offer. Remember that you have 175 million and growing members, and that Twitter does not, and show that you have plenty of confidence in your product. After all Google didn’t just become a portal because some people didn’t get the spare interface.
C.    A and B, and focus on Job 1, which is figure out a way to monetize so that you can rejoin the Masters of the Universe at Davos next year.
D.    None of the above. Instead, hold a press conference. Announce you’re making the website more democratic if that’s what everybody wants and call for a vote. While everybody’s busy voting on that, change everything.

If you picked D, congratulations, you’re thinking like Facebook CEO Mark Zuckerberg.”

7 thoughts on “The Rise and Fall of Facebook”

  1. I find it hard to believe that with all those users Facebook can't make an economic go of it. Perhaps they should just increase their advertising rates.

    It has achieved "front of the mind" position, and I think if they change too many things about it, they will be sorry.

    Let's hope they don't chose option D and let the members mess it up.

    I use Facebook infrequently, but I think it is designed well.

  2. Did anyone saw the interview with Biz Stone last night on Colbert? He was talking about how to monetize twitter. These guys are certainly interesting no? Have great ideas, get millions of dollars from investors and they want to change their ideas into something else. Users just won't buy it.

  3. This is extremely well written. Facebook has a great layout and has so many fans… But if stops being a free site, I wonder how many of these fans will remain?

  4. There just has to be another way to monetize when you have so many people on board – best to meditate and let the answer come rather than panic on not see the wood for the trees

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