Facebook’s Uncertain Business Model
Mark Zuckerberg believes Beacon - the company’s much-aligned advertising service - needs work but he’s confident it will be successful. What else is he going to say other than making a meek apology about Beacon’s inauspicious debut?
Zuckerberg needs to be optimistic about Beacon because Facebook is still, arguably, looking for a “killer app” to generate revenue. It needs a eureka, we’ve hit the gold mine moment much like Google experienced when it suddenly dawned on Larry and Sergey that Overture’s CPC model was the trick to taking making Google a business.
Sure, Facebook has nearly 60 million users but is anyone completed convinced yet that it can transform this critical mass into a business - and a business that can justify a $15-billion valuation? The answer is probably “yes” but Facebook is still struggling to find its way.
TechCrunch questions some of Beacon’s methodologies and privacy issues, while BoomTown and Larry Dignan hope Zuckerberg gets grilled a little when he appears on “60 Minutes” this weekend.
By the way, when did “60 Minutes” become the forum to plead your case when you find yourself on the hot seat? First, Roger Clemens; now Zuckerberg.
Technorati Tags: Facebook, Mark Zuckerberg
January 11th, 2008 at 11:32 am
Hasn’t that been the case all along? How can one forget Clinton ‘92?
January 11th, 2008 at 11:38 am
Aswath:
Good point. I just find it interesting that people like Clemens and Zuckberg are using a show such as “60 Minutes” to get the word out. I guess it still carries some clout after all these years. That said, Clemens was smart when he posted a video on YouTube.
January 11th, 2008 at 12:12 pm
Clemens was not smart for posting on YouTube. The media hammered Clemens for not answering questions but “hiding” behind a one way medium where he denied steroid use. He needed to engage interactively with the public which he quasi did on 60 minutes and then followed up with a news conference. Destination television still carries huge weight.
January 11th, 2008 at 1:04 pm
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January 11th, 2008 at 3:47 pm
FaceBook can be written off as a great idea, but poor execution. What they should have done, was what Google did, hire an experienced CEO, an not run it yourself when you don’t even have any experience. Had they gotten a proper CEO they would not be in this situation.
January 11th, 2008 at 3:50 pm
Gavin:
I’m surprised Zuckerberg is still at the helm. I thought that he would have been moved to become Chief Evangelist so the venture capitalists could hire someone experienced to run the business - kind of what like Google did with Eric Schmidt.
January 12th, 2008 at 1:12 pm
[...] by todd on January 12, 2008 Mark Evans asks a question that I think didn’t need to be asked, mainly because it’s stupid: By the way, when did [...]
June 25th, 2008 at 7:55 am
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