20 million people can not be wrong! Can they? I mean that Facebook has more than 20 million users and is without doubt the number one website in the world of social networks. It is way ahead compared to Myspace. With all the media buzz in recent weeks. Twitter has not yet even 15% of the user base. Facebook is 5 years, but the company has not seen any benefit so far. It is not unnatural, because many new companies working in the day. First, you just invest and invest and get more and more loyal users and then start earning money. Now, there is a sense of optimism among the senior executives of the company will be profitable in 2010. In an interview with the BBC, a senior Facebook executives talked about it.
Well, I'm not very optimistic about the company to be profitable in 2010. 200 million may seem an impressive number, but the reality is that a large proportion of them come from outside Europe and America. If you have a blog or website and you get most of its visitors from outside Europe and America after you know that traffic does not make a lot of money from advertisers. This is the main problem of Facebook. They have to spend money for the huge bandwidth and web space for users, but not getting a good return on your investment.
The second problem we encounter here is that most people come directly to the web. The visitors come from search engine queries tend to bring more money for advertising, compared to visitors to their website directly. The basic idea is that visitors who come directly to your web site directly, they are less likely to click on ads and buy something. However, this theory does not work when a website offers e-commerce services. Think of Amazon or Ebay. People just go there and buy something.
I think Facebook has the same potential if they focus on electronic commerce more. They have an impressive user base and will increasingly be only for a while. Almost every one I know has an account there, except me. I'ma little concerned about the privacy policy and even more so, I'm too busy in my daily life. Thus, opening an account would lose its meaning anyway. Most people are not like me and Facebook has become a part of popular culture. One of the reasons why the company could not even be profitable is the fact that many people spend a long time.
Thus, Facebook has a user base to make money. You just have to focus on finding a good way to make money.
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