Why and How facebook profits because of you? -
People, The real facebook investors
Facebook is usually praised and very seldom criticized. I've seen
already on a couple of occasions on the TV channel news on
earthquake occasions or some kind of other calamities. We
constantly hear how facebook has helped people point their location
or helping people organize a protest against a harmful company
activity etc. Whilst this might be true, the harms it does are
quite big as well. A primary harm it does is to economy as we know
it. As people are engaged in filling in Mark Zuckerberg and
facebook investors pockets, they rarely think about how actually
facebook gets their money.
Let me explain:
Basicly facebook makes money out of its constantly increased social
network content. This could have not been possible without the
800 000 000+ million of people who constantly
post
updates on facebook, create groups, post pictures, add likes,
comment and post links to other facebook pages. If people had
not all this volunteers to post all this bunch of mostly junky
information, facebook would not have a penny. Therefore what makes
facebook grow is the people itself who willingly choose to be part
of this money making machine. One would think with regular company
the investors are the owners of the company shares. This classical
business model in facebook is rather different as the real
investors in facebook are not the capital shareholders but the
regular social network user base - this means (you and me).
For all those who still don't get what I'm talking about I will
shortly explain.
Everyone who has a basic idea on how internet advertising works is
aware that the primary origin for facebook todays profit is
the
left pane sky scraper field with ever changing
advertisements.
Various advertisers pays facebook all the time big money for stupid
advertisement. As many peole are viewing and clicking the
advertisements, facebook makes billions out if its
advertisers.
So far so good, facebook generates its profits out of peoples free
time and delibarately information sharing you would say and you
might argue me that facebook steals anyone. This would have been
true if you don't put in the picture for a contrast, a regular
blogger, who makes its daily living out of blogging.
What a regular blogger does is frequent blogging on various kind of
topics of his interest. Various bloggers blog at various titles,
but most of them has a few major topics which they're
following.
The more articles a blogger collects and the higher the uniqueness
of this information is the bigger the probability this blog to have
a good users base and the more interesting content it will have for
search engine robots like
Google Bot Crawlers or
Yahoo
Bot etc. etc.
With all priod said, the higher the probability this blog to have
more traffic drawn from web searches to the blog. As the blogger
content increases with time when it gets
10000 or more unique
articles (pages), consequently it can be used as an advertising
place. A 10000 pages blog could earn a person a few hundred of
euros (200, 300 EUR) per month.
Well the business scheme behind facebook is exactly the same,
except they store and physically own the data of the facebook
registered persons. The user posts content on his facebook wall,
makes pages or does various activities which generate pages, the
content gets indexed in Google and with time the overall facebook
website content grows. As new users joins facebook with the
increased popularity. The information the website has grows
exponentially like in a chain reaction.
Because of this steady content growth, it becomes an interesting
place not only for advertisers but for all kind of people that use
the internet.
And there you have the monetarization facebook makes billions of
dollars every second because of you. They get their money because
people click or view advertisement on each others profile, so there
you're YOU make the little people who develop facebook and the
original investors richer and richer with every day, where you make
yourself poorer and poorer by investing your personal time in
facebook insetad of using it to work on something that will
potentially generate you some dividents in short or long
future.
Actually social network is nothing more than just a multiple
blogging platform, but some marketing person come with this
marketing hype work
"social network".
The
social network buzz word is in my view
just another
big marketing "white lie"!. Correct me if i'm wrong but what is
a "Social network?". I don't see facebook neither as social,
network as network. I don't know about you but I have never made a
long lasting friend using facebook so far. I think the poor
Facebook creator Zuckerberg made facebook with a viral mindset. He
intended it to be like a social virus and so far he succeed pretty
much. I just wait to see the anti virus for Zuckerberg's (facebook)
- people time eating virus.