Facebook follies Issues Beyond Palo Alto, posted by Gary, a resident of the Downtown North neighborhood, on May 22, 2012 at 7:17 pm
Can someone tell me why Facebook is a rational business model?
I understand Google and Amizon, but not Facebook.
I fully support free-market captialism, winners and losers. However I just don't get the Facebook model. How does chit-chat turn into ad revenues? GM pulled out, as they should have. Why would any business want to buy into the Facebook ad model? Is Facebook just building a database, then wants to go into viral marketing? If so, it will be behind the curve.
Posted by Gary, a resident of the Downtown North neighborhood, on May 22, 2012 at 7:52 pm
"Answer: they have 900 million customers."
Wrong, Facebook may have 900M subscribers, but not customers. Google relies on specific searches, along with a profile of ad choices. Amizon is about selling, including "one-click" purchasing. Facebook is a weird deal, even though I support risk-taking capitalists.
Posted by susi, a resident of the Meadow Park neighborhood, on May 22, 2012 at 9:35 pm
Welcome to the new palo alto. Where someone dares say something against an amoral start up, run by a posturing business naif, which tricks dopes into handing over their private info and sells it to the highest bidder THEN turns around and fleeces them with an IPO.
Posted by Gary, a resident of the Downtown North neighborhood, on May 23, 2012 at 4:45 pm
I happened to listen to an NPR report on this fiasco this morning. A well known anaylyst, in the digital environemnt, said it was way overpriced. She also said that the information was out there, ahead of time. She also said that the business model is highly suspect, because ad revenue is declining, and there is no known solution.
This is an absurd business model, unless it can show that it will sell real products (new mousetraps), instead of pure hype. Solyndra sold hype, instead of lower-cost power; Obama funded Solyndra; Obama supported Facebook and Zuck (both ways). It is time to draw the line: Facebook/Solyndra/Obama are triplets, born of the same ideological mother.
Posted by Gary, a resident of the Downtown North neighborhood, on May 23, 2012 at 5:42 pm
"FB had half a BILLION subscribers before Obama was elected."
The question is: How does FB make money from its ad model? Nobody seems to be able to figure this out. I am thinking that it is a shell company, deriving profile information, then selling this inforamtion to willing buyers...who will then atempt to sell products. However, it is so nebulous... ethereal, smoke and mirrors...so Obama-like.
FB shills should announce theemselve, before they attempt to provide cover for this disaster. James?
BTW, my name is Gary, not Jerry. But have as much fun with it as you like. Is your name "James" or "Zuck"? Or do you report to Zuck? Or to the underwriters of this disaster? Or are you just a naive investor that bought into the hype?
Posted by Palm reader, a resident of the Greenmeadow neighborhood, on May 23, 2012 at 8:13 pm
James asked "Gary, whats your prediction?"
So Gary ran away, accusing him of shilling. What has he said positive other than the number of subscribers?
Gary, whats your prediction?
Sharon had the guts to predict Facebook will be down with MySpace soon. Gary runs. All those words and not the guts to do anything as bold as Sharon. Gary talks about chitchat, a digital analyst, behind the curve on viral, data base building, suspect model, declining rev, "This is an absurd business model", etc...
Fess up Gary, say it. Prove to folks it's worth their time to read your "opinion".
Posted by NoFool, a resident of the College Terrace neighborhood, on May 24, 2012 at 9:01 am
FB has so much data about their subscribers at their disposal by this point that it is staggering. They can therefore target ads in such a way that it is more efficient for advertisers. That being said, how many people actually click on these ads? FB relies on their users' stupidity. That's right. If all FB users were more intelligent, they would not be "liking" whatever they see pop up on their screen and clicking "OK" whenever they are asked if they are willing to not only give complete strangers access to all sorts of personal information about themselves, but also personal information about all the people they are connected with on Facebook! A very small percentage of FB users play the paid versions of games or make purchases through the ads. But that is a small percentage of an extremely large population. So as long as enough users continue to be stupid, FB will continue to be a successful business.
What makes FAR less sense is some of the satellite businesses that rely on Facebook. Zinga? Instagram? Instagram is worth $1bln?? I would almost pay to NOT see Instagram photos! As long as there is a large population of unintelligent users, these businesses will succeed and multiply.
I have been telling people for the past couple years that FB will be a distant memory in 10 years. There are many superior social networks. There were before FB, there are now, and there will be much better ones in the future. Unfortunately, so many people these days are on FB simply because "everyone else is." Once critical mass is achieved by one of the superior social networks, FB users will flock to this new network, leaving a MySpace-type ghost town behind...
Posted by Palm, a resident of the Greenmeadow neighborhood, on May 24, 2012 at 3:25 pm
Ggary, your answers - no, no, no. Why do you ask? I haven't hyped nor trashed (like you) facebook. "Gary talks about chitchat, a digital analyst, behind the curve on viral, data base building, suspect model, declining rev, "This is an absurd business model", etc..."
Others that have trashed fb have had the guts to make a prediction.
"but only if it develops a consistent revenue stream. " You won't be able to afford it then.
Posted by Anon., a resident of the Crescent Park neighborhood, on May 29, 2012 at 8:48 pm
All of these companies are incompetent.
FB plays games with our data and who knows what they do with all that data of connections between people and what they like.
Google has been doing search for over ten year and has not substantially improved or brought anything new to search. Servers game the system to get tons and tons of the same website and what good are thousands of results that I cannot use or have to in some way process to get what I want? Google does work, but on like a kindergarten level. And why one Earth would they need to make "Don't Be Evil" their motto? Funny how branding and public relations is often the technology of getting the public to believe the exact opposite of what the organization is going.
What these sites do is to offer the least possible useful thing they can to draw people in to use them while they take the results and process them about global sociological data.
If you ever read the book "IBM And The Holocaust" the Nazis were able to demographically slice and dice Germany and determine which minorities they could marginalize and ultimately criminally exploit and murder millions of people with simple census data and punch cards, then they disappeared, the unlucky ones killed or caught.
With the pyramidalization of our society we now see and the power and automation given to such a very few who can be certain we do not face something far far worse in the future.