‘Facebook on Decline?’

The Facebook business model – how sustainable is it really?

Think about the amount of time you spent on the site when you initially joined.  It was quite a bit right?  There were so many people to ‘friend’, so many lost acquaintances from college, high school and grade school.  But then you connected with all of your friends, both past and present.  If it was anything like my experience, your high school class formed a group, that you and everyone else joined, and you quickly added everyone in the group.

Done.  Now what?

The article, ‘The Beginning of the End for Facebook?’ written by Ben Barjarin essentially argues this point based on some really great examples.

“[Ben] recently polled almost 500 high school students in San Jose, and shockingly, not all of them were on Facebook. But perhaps not surprisingly, nearly all who were said they were basically bored with the site and had been using it significantly less.”

If you’ve already searched out all those long lost friends, you may have entered the ‘content management phase’ of Facebook where you are essentially maintain and occasionally updating existing profile information.  Not exactly exciting and the polling completed by Ben would seem to agree.

With Facebook is looking to complete an IPO next year, the longevity of its business model seems to need evaluation or at least an analysis on the usage life-cycle of Facebook customer.  I’m sure this evaluation is not far away as plenty of investment analysts will want a chance to value the social media behemoth.

And I don’t know about you, but I will be very interest to see the results.

Is anyone else seeing similar reports?

Source:

http://techland.time.com/2011/12/05/the-beginning-of-the-end-for-facebook/#disqus_thread

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About Jason B
Boston College, Carroll School of Management Class of 2013.

3 Responses to ‘Facebook on Decline?’

  1. Luke says:

    I will also be interested to see what happens with Facebook’s IPO. These companies are impossible to value right now but at least once it IPOs they’ll have to make their financials public. I realize Facebook has a ridiculous amount of users worldwide but as you point out, FB will have to keep users coming back to their site. I’m already tired of it but I might be a more private individual than the average FB user. I don’t think people care about my vacation and if they do I would rather send pics directly to them through Picassa.

    I think Twitter is a much more viable source for news and updates so in the end I think Twitter wins that market. I have commented on other blog posts about FB but I wouldn’t miss it if the website disappeared tomorrow.

  2. remcrow says:

    Until people stop posting pictures, Facebook will serve those looking to ‘Facebook stalk.’ I find it sad, but believe it to be true.

    Perhaps though, I am biased working with teens and college students?

  3. Facebook’s IPO seems to be quite a hot topic these days. A lot of the press has said the timing of the IPO is related to the number of shareholders facebook has accumulated, but I wonder if the timing coincides with an internal outlook on the future of the company. Perhaps ownership wants to “cash out” before people realize Facebook is mortal. I would guess Groupon’s stock performance since its IPO may have influenced their decision making.

    I’ve also noted that facebook has lost some steam socially. The key thing I’ve noticed is the pace of updated info, pics, etc. has slowed down amongst my facebook friends. Obviously, this is just my anecdote, but it’s something I have been curious about.

    Thanks for the post!

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