June 23, 2008

Facebook's growing pains

This is an interesting take on Facebook's ability to raise revenues on the back of international (rather than US) growth. The whole question of the monetization of social networks is hugely interesting, particularly in light of Eric Schmidt's admission that Google isn't really sure how to make YouTube pay.

The issue is one I've been looking at a lot recently, and I'm beginning to wonder if the second generation of social networks will fail for the same reasons as the first, such as Friends Reunited. Friends Reunited couldn't persuade people to pay, so recently took down its pay-wall, and suffered from a splurge of initial interest eventually trailing off. It now looks like Facebook et al, having avoided the pay model, can't generate sufficient advertising. What's the alternative...?

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