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?
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.”