Are you a Facebook addict? Do you know anything about the company that’s responsible for you being tagged in those embarrassing photos? Are you considering investing in this company when it goes public?
“Facebook was not originally created to be a company. It was built to accomplish a social mission — to make the world more open and connected.” — Mark Zuckerberg
Since Facebook is going to public, we’re going to find out more about the company. There’s more to the company then just being responsible for many breakups and unnecessary updates from friends that don’t know what should be kept to a private text message. If you read my previous post on how the stock market works, you already know that investing is all about putting your money into a company that has a strong management team.
What are the numbers that Facebook has released?
Facebook had 483 million daily active users on average in December alone. They also had a full-year net income of $1 Billion. Zuckerberg, the founder in case you didn’t know, is 27 years old. After all these years of experience and being in the public eye, he’s not even 30 years old yet. Facebook has 845 million users. The company hopes to raise $5 Billion through going public on the stock market.
Those are some impressive numbers. When I first heard about Facebook in 2007, I thought it was simply going to be the next MySpace (remember that?). Here we are in 2012 and Facebook is making all of this money.
How does Facebook make money?
Facebook stalks you. Well, to be technical here’s what they do:
Facebook sells the promise of highly targeted advertisements based on the information its users share, including interests, hobbies, private thoughts and relationships. Facebook also takes a cut from the money that apps make through its site.
Did you really think that those ads on the side were a coincidence? My friend told me that he noticed he had seen ads based around dating sites and the such. I asked him if he had been on any adult sites recently. He confirmed that he had been. Now he knows why he gets the ads on Facebook that he does.
Facebook sells highly targeted ads and is able to charge top advertising dollar because of the amount of users on the Facebook network.
What’s the role of social networking on your career?
I won’t even attempt to hazard a guess on how Facebook will be used in the future to find (or lose) a job. I can guarantee that you need to watch what you do on Facebook. I’m as guilty as anyone of being foolish on Facebook by getting tagged in drunken pictures and writing nonsense. I’ve cut back on Facebook in the past and have even considered deleting it because I do like some privacy. I don’t want to know what every single person is doing on a Monday morning. I also don’t want others knowing everything that I’m up to.
I do realize that Facebook can also be a great tool. I’m trying to integrate Studenomics and Facebook more often these days.
How you can make billions of dollars in this world?
I’ve always been told in my marketing classes that making advertising money is all about eye balls. The simple formula then is to have an abundance of eye balls and the ability to promote something. That doesn’t sound so difficult, does it? All you need is to build yourself up to the point where you have a huge amount of supporters. Stop right there. That’s the problem. You need to find a way to get a huge amount of followers on board. If you do this, then the money will follow.
Everyone thinks that it’s easy to start the next Facebook and make a fortune. If it really is that easy, then why don’t you try to sign up with Bluehost and build your own site. Good luck getting anyone past your immediate family and circle of friends to even pretend to care about your site at first. Now imagine bringing the amount of users on your site to 845 million.
What are you going to start?