Sunday, March 22, 2009

Stupid Facebook Groups

I am constantly amazed by the number of people that will believe just about anything they read on the internet. A case in point this group, http://www.facebook.com/group.php?gid=54350527492&ref=nf# ,
that is against turning facebook into a paysite. This sounds like a reasonable thing until you sit down and analyse what it would mean for the business model that the place is built on.

Turning facebook into a paysite would be among the stupidest business decisions that has been made in a long long time--and let's face it there have been some doozies lately. It makes a fortune as it is now and it is only worth what it is because it IS a free site, or rather an ad supported site since TANSTAAFL. If it had 1% of the users that it does, which would be my guess if it went to even a modest pay to play structure then it would be worth virtually nothing.

Facebook prides itself on its ability to target ads based on our interests and demographic details. That is one of the biggest pluses in its business model. If I am an advertiser and someone can promise me that I can deliver their ad to only 47 yr old pudgy single white guys that have good jobs and live near a mall owned by the soon to be gone GGP (hmmm sounds familiar), then I am going to pay them a very nice premium to place that ad. If you take away the diversity of markets on facebook you take away the very reason that any advertiser gives a shit about the place and thus you take away the profitability in the business model. If you take away the profitability no one would want to buy the place.

Mark Zuckerberg is many things but stupid is not among them. It would be exceedingly stupid to kill the goose that is laying billions of golden eggs in his bank account.

This isn't to say that the people that join this group are stupid, I think they are sincere, I just think that there isn't any realistic chance that it would happen.

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Not moderated but I do delete spam and I would rather that people not act like assholes.