Wednesday, May 26, 2010

Business Model for Facebook

Facebook is one of the most interesting company out of there. They went from few millions of users up to five hundred million in a couple of years. I forecast they break the billion by Q2 2012.

In addition, running the business is not as expensive as search. They need to store user profiles and a lot of images. Video is outsourced to youtube and realtime updates are not so expensive (what is the history they maintain?).

Anyway, running a business requires to make money. So here is my call: What business model do you suggest for facebook to make money?

Content ads never worked for search. Could it work for FB? Or what else?


  1. Shouldn't a company valued at $15B already have a business model?

  2. not really, with 500M users. I also believe that they are already at break-even. My back of envelope computation says that running their business is not that expensive and can scale well if they increase the users or the markets.