Facebook NOT charging for use
Every so often one of people on my Facebook friends list joins a group with a title along the lines of Facebook to start charging $5.99 a month from 1st July 2010 join to say no.
The case against Facebook charging
Facebook won’t start charging, ever. It would be business suicide.
Facebook revenue comes from selling advertising, targeted with surgical precision. Targeted using information supplied by users; sex, age, location, interests etc. When I split up with Rachel and changed my relationship status to single, Facebook was immediately offering dating sites and advertisements. Users can even flag an advertisement as irrelevant effectively further targeting the ad. With around 400 million users, half logging in every day, even if users only viewed one profile page on that daily login it would mean 600 million ad views a day! Facebook is set to make half a billion US$ a year in 2010, you’d have to be severely insane to risk alienating your customer base with half a billion pounds of revenue and those ad revenues.
Facebook already announced way back in May last year on the Facebook blog that they are NOT planning on charging.
So why do these rumours keep surfacing?
Just because lots of people keep claiming something is true, doesn’t make it so, even on the internet. These groups are created with the specific intent of doing everything they can to get as many people to join the group as possible (hence the provocative group names), once they have enough members someone will start dropping in spam messages to make some dollars.
If a group has 100,000 members and 1% of people follow up on a spam ad yielding a US$0.50 return that’s $5,000. Not bad for quarter of an hours work and a few posts of Facebook to keep it looking legitimate. The same person often creates a dozen of these groups at a time. There’s no advertising cost involved for the scammers apart from their time. The irony of it all is that as more people sign up they keep promoting the group making it get ever bigger.
Just to give you an idea of real numbers, I’ve seen one group with 650,000 members and at least twenty spam ads. (Based on the equation above that’s US$130,000!!)


