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Friday, 3 August 2012

Facebook Monetization Strategy

Posted on 10:13 by hony
As of writing this, Facebook's share price is hovering around $20, about half of what it cost at the IPO. The problem many investors are having (explaining the subsequent drop in share price) is that Facebook's ability to generate revenue is questionable, and as their userbase plateaus in some areas...and is found to be fake in others...doubts arise about their value as a company.

This morning I got a text from a mystery number. Clearly the person knew me, and was aware of the goings-on of my Facebook profile because the text referenced something I had posted on a friend's page. But I did not know this person. Either they had a new number, or I'd lost the contact info when I flashed Jelly Bean onto my GNex, or both.

And after I found out which friend it was, I realized something: Facebook contacts never vanish. My sister gets married and changes her name...she still shows up in my friend list. My friend moves to Ohio and has a new address, he still shows up in my friend list. My buddy quits Verizon and moves to AT&T and gets a new cell phone number, he still shows up in my friend list. Despite changes in the data within it, our Facebook Friend List is immutable. And essential too; I was able to 'sync' my friends list with my phone and get cell phone numbers off of that sync.

Why aren't you charging for that, Facebook? Of course I appreciate things that are free. But having a list of all my contacts (that the contacts themselves helpfully update for me) and making that available to me, anywhere, is a pretty handy technology to have. One I'd pay a buck or two a month to keep. If Facebook could further refine it, say, by including a "Work People List" or something of that nature...I'd pay $10/month.

Facebook, are you listening?


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