Usually towards the end of a long day, when Justice League igNew is
experiencing scope creep, one of us will poke Dave (our Flash) with the
idea that Facebook is a great business model. It's pointed out that
Facebook is able to capture the attention of 200 million viewers
worldwide and that is just a phenomenal thing. And as expected, Flash
will begin to point out that Facebook may be able to generate a large
amount of revenue each year but they are still not making money. Flash
won't be sold on Facebook's model until the company starts to make
money. His thought, "Who
cares how many people show up to your lemonade stand, if you don't
charge
them anything?" We all agree with Flash on this but it is fun to watch
get fired up. However, our mostly friendly banter
brings up a good topic of discussion, how does one measure the level of
success of a social media site
like Facebook and how could that impact other web based businesses in
measuring their success?
Here is a great article that discusses that very
thing and how those measures of success may be impacting other business
models. It doesn't use Facebook for their example but you should get the point.
http://37signals.com/svn/posts/1890-the-bar-for-success-in-our-industry-is-too-low
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