Targeting and social recommendation. Those are Facebook’s working ideas for a business model.
This from the Wall Street Journal in a quote in Facebook and the “Duke Nukem Forever” of Business Models. Consider this from Facebook’s Mark Zuckerberg in an interview with a German publication:
“I don’t think social networks can be monetized in the same way that search did. But on both sites people find information valuable. I’m pretty sure that we will find an analogous business model. But we are experimenting already. One group is very focused on targeting; another part is focused on social recommendation from your friends. In three years from now we have to figure out what the optimum model is. But that is not our primary focus today. … Growth is primary, revenue is secondary.”
You need deep pockets to pursue growth over revenues, especially in a market downturn.
Have an opinion on a workable business model for social networks? Why not share your thoughts in a comment.
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