(TDS) Frank Reed at Marketing Pilgrim wrote a fun article that highlights Facebook's business model problem.
Facebook's main problem is figuring out how to charge marketers for access to the Facebook audience. We'll pay since Facebook consumers are engaged and responsive. Obviously, display ads aren't the answer (they really don't work) and unfortunately, Facebook already abdicated all of the marketing tool development and associated revenues to other companies (thanks shoutlet!). My largest cost is talented communicators - and thankfully, none of the current software/media companies can replicate them!
Yep - Facebook is helping to power an enormous social revenues eco-system, but they haven't figured how to capture their piece of the pie. They are smart and will figure it out. Until then, I'll keep taking advantage of the system :-)
Via Tina Stock