Posts Tagged ‘data content’

Why and How facebook profits because of you? – People, The real facebook investors

Tuesday, March 6th, 2012

Facebook people real facebook investors, facebook profits because of you / facebook greedy money logo

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, where facebook was said to help the rescuing teams etc. We constantly hear how facebook has helped people point their location in disastrous situations or just helping people organize a protest against a harmful company activity. 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 data 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 (facebook users) to post all this bunch of mostly junky information, facebook inc. 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 is not facebook model, there it 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 displaying those 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 people (time / money). 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 of website. The website is growing exponentially like in a atoms 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.  This is the shocking truth, 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 instead 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 in fact 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 or relationship 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 and eager to see who will start the anti-virus for Zuckerberg's (facebook) – people time eating virus.