How can Facebook make money? 3 key features that might have been ignored.
There was much talk and hype about Facebook’s valuation and equally the downfall of the share prices after its IPO. Personally, I thought it was over valued at US$100bn, but that’s a very personal opinion and not based on any facts, but the fact remains that all of this is on the long term expectation of Facebook making money.
So while under huge pressure to preform and start showing an increased revenue source, many users are already started to get annoyed. Some have gone to the extend of leaving it and equally many are worried about their personal data and to what extent it is used and how private it is. Will their photos suddenly start appearing on photo stocks? or other commercial sites. So here is how I think Facebook can make serious money.
1. Charge for privacy. Today a friend of mine said he would be happy to pay €25 / year to make sure that his information is kept private. I am sure that many people will be happy to dish out a small sum, to keep their information and activity private.
2. I am happy to pay €50 / year or even more NOT to see those annoying advertisings on Twitter or Facebook. In fact, I have clicked on many of them and they have been misleading and the website says: Ads not by XXXX, so I am even less inclined to click on them.
In my Freemium model for Urbytus services, we offer our services for free with ads and for a fee without adversting. I am amazed at how many people want it without ads and want to pay for it.
3. Monetize on statistical data. I recently read that Facebook is refusing to share this type of information with universities, but I am sure that there should be a vast number of companies and this should include all the big financial firms to tap into what people are really talking about, liking and more. Selling such statistical data should probably generate more than advertising.
So Señor Zuckerberg, here is my brainstorming for you free of charge. Now that the shares have dropped down to about 20 US$ / share, I personally feel it is more to my liking and will buy some and hope that you will take up my advice so that the share prices increase over the years to come.