Monday, 11 June 2012 15:44

Will Facebook be profitable?

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Well Facebook (FB) is now a public company and the questions are being asked if it will be profitable for the shareholders. As a public company FB now has a legal obligation to be profitable for shareholders so how will it do this? Who will pay the price?

The suggestion has been put forward that FB must now consider charging users or charging for the use of their services such as the API functions. If this happens will users be willing to fork out their cash to continue using the site? Although they have over 700,000,000 users FB is not immune to the same fate as MySpace where users left to go to FB and the introduction of user fees could spell the end of it's popularity.

Although FB charges for advertising space many users ignore them with only 1% of users surveyed recently admitting that they had clicked on an ad. Some major companies have discontinued the use of FB ads due to lack of interest.

I will leave it to you to comment on the future of FB as a public company and and it's ability to be and remain profitable.

Read 4512 times Last modified on Wednesday, 14 November 2012 15:29
Mike Burgess

I like to blog because it makes sense to have a voice.
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