Charging Companies on Facebook
May 29, 2009
While Facebook did gross about $280 million in revenues in 2008, they still have yet to turn a profit. This hasn’t turned investors away, but it’s crucial for Facebook to grow their current revenue streams while exploring new ones. The $200 million investment they got a few days ago gives them a lot more time to grow their revenue.
So why not charge the companies that promote themselves on Facebook? I’m a fan of the New York Times on Facebook (as are about 450,000 other people) and they post a few links a day to their stories. While it’s not exactly the same as advertising (users only see the Times’ stories in their feed if they become a fan), it does generate a fair amount of publicity and page views for the Times.
Right now, the New York Times and other comanies are getting all of the extra exposure for free. I have a feeling Facebook could charge companies a fee (yearly, per posted item, etc.) to promote themselves via fan pages and give their stories extra prominance in users’ feeds. It might not be enough to make Facebook profitable, but it would definitely help them along the way.