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Monday, April 14, 2008

Facebook and the monetization dilemma

Facebook's Sheryl Sandberg

Weird. Two Facebook posts in a row. Anyway, CNN Money reports, "[Sheryl] Sandberg, 38, is in charge of helping the Valley's most popular startup grow up. Over the past four years, Zuckerberg has built the social-networking site he started in his Harvard dorm room into a 550-person business that sprawls across seven buildings in downtown Palo Alto." The article continues, "Even though Facebook is seen as the embodiment of Web 2.0, it has the quintessential Web 1.0 problem: No one has figured out how to make real money off it. Facebook pulled in revenues of just $150 million in 2007. In short, Zuckerberg et. al have yet to hammer out a business model. Oh, that."

Facebook is facing a serious dilemma. At a mere $150 million dollars a year in revenues, Facebook can only afford to pay its employees enough to buy Mercedes, and not Maseratis. The answer? Sheryl Sandberg, some important lady from google, is going to find an innovative way to monetize Facebook put bumper pages with large annoying ads on them, forcing you to click on the "skip this ad" link and inundate us with a billion true.com ads.

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