#Facebook again: And Biz Models

Doc Searls has taken the critical analysis of Facebook’s value to another level, by pointing out the fundamental weakness of its ad-supported revenue model. His argument is worth serious reading.

Put a somewhat different way: We assume too readily that exponential pressures mean we can just draw lines up graph paper from anything that has started to work. It’s how startups make their pitch. It may or may not be realistic. The Groupon situation is a case in point. But more tech-focused models also face the same problem. As targeted ads get more and more targeted, especially in the unwelcome context of a “social” network where we are not generally searching for products and services, will they just run out of steam as we run out of patience?

Which brings me back (sorry) to my point: We need innovative biz models to go along with innovative services. Facebook is a social marvel. Its biz model is based on deep privacy mining. Why not a subscription-based service with mutual ownership? It will be a utility soon enough. Might as well plan from the start. Of course, this horse has now bolted, IPO-style. But perhaps a lesson can be learned.

 

 

Doc Searls Weblog · After Facebook fails.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 5,251 other followers

%d bloggers like this: