While I don't think I would go as far as to call Facebook a "Ponzi scheme", I do agree that Facebook has been lackluster about monetizing their huge user base. The author is right in pointing out that people rarely go to Facebook to research or buy a product. Unlike Google or Amazon, Facebook is not about consumption, it's about reconnecting and taking a break.
While I am by no means an expert in the field, they need to remember what they are and focus on that. Far more promising a prospect is the revenue sharing they do with companies such as Zynga. This model exploits all that Facebook does well: high retention to the site, and a high return rate. They need to stop focusing on ads as a form of revenue and monetize their social aspect creatively.
While I am by no means an expert in the field, they need to remember what they are and focus on that. Far more promising a prospect is the revenue sharing they do with companies such as Zynga. This model exploits all that Facebook does well: high retention to the site, and a high return rate. They need to stop focusing on ads as a form of revenue and monetize their social aspect creatively.