Monday, October 3, 2011

Good news : FB will never charge you for usage

Since the inception of the new features and changes in the Facebook earlier this year, there has been a ubiquitous rumor that one of these changes might be the charges Facebook is likely to put on its usage. But fortunately Facebook has no such plan not only in near future but also in a long run of its business.

I am sure you would like to know the reason behind this. So here it goes...

There are some obvious reasons why Facebook will never do that, first of all Facebook is earning much more than it planned to earn in its projected business plan. Moreover its about to go public in few months after which it revenue is likely to be about $80 billion to $100 billion.

Next big reason for this lie in Facebook's business model. Right from the time when the idea of Facebook originated its target has always been to increase the number of users and not to get money from its actual users itself. Following this strategy Facebook was free of ads for several years. Its just four years back (2007) when Facebook actually started putting ads on its pages.

Of course Facebook business is to make money but not in a direct manner. It has plan to monetize but not fetching money for usage which will do nothing but decrease its number of users. It is using Facebook credit system at present with games like Farmsville, Mafia Wars and others which is in turn building a platform similar to that of Paypal in a long run. It may come out to be one of the competitor of Paypal. Similar there are some other ways facebook is making money for example by selling third party products online etc.

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