Remember how everyone was hoping that at some point huge online hits like Twitter, Youtube or Facebook would come up with that BIG IDEA of how to make loads of cash in one quick move? Secretly we were all hoping for that because it would have given Internet that all mythical quality we all assumed it had.
Now Facebook has hit break even. How? Read this (and weep, because there is no big idea, it's just a combo of what Internet entrepreneurs hate most: advertising and gimmicks).
"Meanwhile, Facebook's Mark Zuckerberg also made a significant announcement last week. This was not his revelation that Facebook now had 300 million users (interesting though that is), but that it has reached the point where its revenues now balance its operating costs. Everybody has been waiting to see if Facebook would hit on a Big Idea that would make it financially sustainable. What now transpires is that there is no Big Idea, just an agglomeration of small ideas like self-service (plus traditional) advertising, sales of gifts and "virtual property" etc which add up to a significant income stream."
from here
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1 comment:
just finished watching a vid of your webstock presentation, and i couldn't agree more! you pointed out everything that (still) scares me a bit about social networks...
congratulations for the speech, it was professional and useful.
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