Facebook’s Growing Pains

According to TechCrunch, Facebook may have to raise even more money to support its rapid growth.

Strong growth is always a nice problem to have but growth also comes with costs: facilities, staff, utilities, etc. Facebook’s problem – if you want to call it a problem – is it’s aggressively building an operating structure to support growth but it’s still waiting for revenue to gain more traction.

For anyone who thought Facebook was losing momentum, I went to a new media conference in Montreal earlier this week where I did an informal audience poll about what social media tools people were using.

A handful of people had blogs and a couple used Twitter, while the vast majority had Facebook accounts. This was not a tech/geek audience, which suggests that while the geeks are busy looking for the next toy (e.g. Twitter), mainstream users are still climbing on the Facebook bandwagon.

For more insight, Traffick has a good post looking at Facebook’s different revenue options, including premium services.

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  • Guy Rosen

    Your informal poll may be right, but how many people actually *use* Facebook?
    Almost everyone I know has a Facebook account (heck, even my parents opened one). And yet, only a small percentage of them actually use it on a regular basis. Frankly I’ve found many people drop off once the novelty wears out, there are no more old school buddies to find and you stop getting trivia invitations.
    What is interesting though is that it’s the youth who are sticking with Facebook. Teens are using it more frequently than email. Assuming they persist (and don’t quit on it like they did on MySpace), that IS really saying something about Facebook’s long term prospects.