Comments on: thinking about facebook and myspace http://www.cheezhead.com/2007/08/02/wheres-the-money/ Insight and opinion from the world of employment. Fri, 13 Nov 2009 04:01:22 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: kelvin newman http://www.cheezhead.com/2007/08/02/wheres-the-money/comment-page-1/#comment-44290 kelvin newman Wed, 15 Aug 2007 14:57:15 +0000 http://www.cheezhead.com/2007/08/02/wheres-the-money/#comment-44290 I wonder if they'll end up making their money from the great consumer insight they have. Facebook for example with their polls. It's a small feature but one with interesting possibilities I wonder if they’ll end up making their money from the great consumer insight they have. Facebook for example with their polls. It’s a small feature but one with interesting possibilities

]]> By: joel http://www.cheezhead.com/2007/08/02/wheres-the-money/comment-page-1/#comment-43085 joel Wed, 08 Aug 2007 12:27:52 +0000 http://www.cheezhead.com/2007/08/02/wheres-the-money/#comment-43085 Interesting. Thanks, Matt. Interesting. Thanks, Matt.

]]> By: matt martone http://www.cheezhead.com/2007/08/02/wheres-the-money/comment-page-1/#comment-43023 matt martone Wed, 08 Aug 2007 04:40:48 +0000 http://www.cheezhead.com/2007/08/02/wheres-the-money/#comment-43023 Interesing. Check out this line from the facebook t's and c's... 'Facebook reserve the right to impose fees at time and in any manner (Section 3)' http://www.webpronews.com/topnews/2007/05/30/facebook-f8-read-the-fine-print Interesing. Check out this line from the facebook t’s and c’s…

‘Facebook reserve the right to impose fees at time and in any manner (Section 3)’

http://www.webpronews.com/topnews/2007/05/30/facebook-f8-read-the-fine-print

]]> By: matt martone http://www.cheezhead.com/2007/08/02/wheres-the-money/comment-page-1/#comment-42241 matt martone Fri, 03 Aug 2007 17:57:38 +0000 http://www.cheezhead.com/2007/08/02/wheres-the-money/#comment-42241 I was surprised to learn that the agreement to use facebook as a platform for your app allows you to commercialize it and make a profit. If facebook's display ads never monetize well and if they never get into a lucrative enough search agreement, my guess is that the company will start taking a cut of the profits that app developers earn building on their platform. With so many people building so many apps, an economy can develop and facebook's earnings can compound to who knows what level. Just a thought. May be ridiculous. Who knows. I was surprised to learn that the agreement to use facebook as a platform for your app allows you to commercialize it and make a profit.

If facebook’s display ads never monetize well and if they never get into a lucrative enough search agreement, my guess is that the company will start taking a cut of the profits that app developers earn building on their platform.

With so many people building so many apps, an economy can develop and facebook’s earnings can compound to who knows what level.

Just a thought. May be ridiculous. Who knows.

]]> By: EH http://www.cheezhead.com/2007/08/02/wheres-the-money/comment-page-1/#comment-42237 EH Fri, 03 Aug 2007 17:21:32 +0000 http://www.cheezhead.com/2007/08/02/wheres-the-money/#comment-42237 Google Base is curious case, but it's worth asking what Google's motives were in launching it. Despite the lack of substantial user adoption, it may be a success from an internal perspective when viewed as a means of expanding the scope of content that can be plugged into Adwords. After all, lots of advertisers use it, even if job seekers don't. It certainly seems that they haven't put much energy into promoting it or creating a fantastic user experience, but is it making them money nonetheless? Google Base is curious case, but it’s worth asking what Google’s motives were in launching it. Despite the lack of substantial user adoption, it may be a success from an internal perspective when viewed as a means of expanding the scope of content that can be plugged into Adwords. After all, lots of advertisers use it, even if job seekers don’t. It certainly seems that they haven’t put much energy into promoting it or creating a fantastic user experience, but is it making them money nonetheless?

]]> By: Bob http://www.cheezhead.com/2007/08/02/wheres-the-money/comment-page-1/#comment-42091 Bob Fri, 03 Aug 2007 00:54:09 +0000 http://www.cheezhead.com/2007/08/02/wheres-the-money/#comment-42091 The money lies in creating a more direct path to target audiences. Google is trying to find a more direct path by enticing users to use iGoogle, which sets up a scenario where Google can essentially provide targeting to the individual level. AdWords is limited to key words used for search which do not even begin to provide the level of ad targeting capability that a social network like Facebook can provide. The money lies in creating a more direct path to target audiences. Google is trying to find a more direct path by enticing users to use iGoogle, which sets up a scenario where Google can essentially provide targeting to the individual level. AdWords is limited to key words used for search which do not even begin to provide the level of ad targeting capability that a social network like Facebook can provide.

]]> By: Peter C http://www.cheezhead.com/2007/08/02/wheres-the-money/comment-page-1/#comment-42077 Peter C Thu, 02 Aug 2007 22:50:21 +0000 http://www.cheezhead.com/2007/08/02/wheres-the-money/#comment-42077 Hrmmm ...a very good question. As of now, it seems like they can pull in revenues in the $100MM-200MM range based on their rate cards. It's decent but it's not Google. There's also a question of growth in that area. I would guess that if they wanted to grow like Google, they have to get in to search. Personally, the only times I've clicked on sponsored links is when I used Google to make a purchase decision. If Facebook could leverage the power of social networks, combine it with search and convince people to use this to make purchase decisions then they can begin to get into the ballpark of Google. In order to do that, though, they'd have to make a big fundamental change to their social networking model. It would have to be open so that you don't exclude your user base to only Facebook users. Hrmmm …a very good question. As of now, it seems like they can pull in revenues in the $100MM-200MM range based on their rate cards. It’s decent but it’s not Google. There’s also a question of growth in that area.

I would guess that if they wanted to grow like Google, they have to get in to search. Personally, the only times I’ve clicked on sponsored links is when I used Google to make a purchase decision. If Facebook could leverage the power of social networks, combine it with search and convince people to use this to make purchase decisions then they can begin to get into the ballpark of Google.

In order to do that, though, they’d have to make a big fundamental change to their social networking model. It would have to be open so that you don’t exclude your user base to only Facebook users.

]]> By: Calin Fusu http://www.cheezhead.com/2007/08/02/wheres-the-money/comment-page-1/#comment-42055 Calin Fusu Thu, 02 Aug 2007 20:05:26 +0000 http://www.cheezhead.com/2007/08/02/wheres-the-money/#comment-42055 Maybe we should split the recruiting business in two: classifieds postings (G-base) and resume-search (LinkedIn). If we focus on the second, recruiting is a business of trading (information about relevant) people, and Facebook seems to build a huge inventory of them. Not so complete/structured information yet, and they didn't had time to build call-centers to sell it, but the numbers are big, and the selling operations can be build/bought later on.. G-base is a mistery to me too: I don't know if the un-success comes from strategic pressures from eBay or from the fact that Google is too strongly associated with general unstructured search.. Maybe we should split the recruiting business in two: classifieds postings (G-base) and resume-search (LinkedIn).

If we focus on the second, recruiting is a business of trading (information about relevant) people, and Facebook seems to build a huge inventory of them. Not so complete/structured information yet, and they didn’t had time to build call-centers to sell it, but the numbers are big, and the selling operations can be build/bought later on..

G-base is a mistery to me too: I don’t know if the un-success comes from strategic pressures from eBay or from the fact that Google is too strongly associated with general unstructured search..

]]> By: joel http://www.cheezhead.com/2007/08/02/wheres-the-money/comment-page-1/#comment-42043 joel Thu, 02 Aug 2007 19:53:06 +0000 http://www.cheezhead.com/2007/08/02/wheres-the-money/#comment-42043 Can't see jobs, or even integrating all classified categories as a panacea to riches. And there's certainly nothing historically that would foreshadow such. Google Base *should* be a huge success. It isn't. Can’t see jobs, or even integrating all classified categories as a panacea to riches. And there’s certainly nothing historically that would foreshadow such. Google Base *should* be a huge success. It isn’t.

]]> By: Calin Fusu http://www.cheezhead.com/2007/08/02/wheres-the-money/comment-page-1/#comment-42034 Calin Fusu Thu, 02 Aug 2007 19:44:38 +0000 http://www.cheezhead.com/2007/08/02/wheres-the-money/#comment-42034 Joel, Monster is making over 1b/year, I'm not sure what percentage from job-postings and what from resume-search. Can you tell me a reason why LinkedIn or Facebook cannot take this market away from the big3? The second big source can be direct-marketing: Facebook/MySpace can do very efficient demographically targeted advertising.. I guess there's a lot of money in this market too.. Joel, Monster is making over 1b/year, I’m not sure what percentage from job-postings and what from resume-search. Can you tell me a reason why LinkedIn or Facebook cannot take this market away from the big3?

The second big source can be direct-marketing: Facebook/MySpace can do very efficient demographically targeted advertising.. I guess there’s a lot of money in this market too..

]]>