Facebook a success? Says who?

by Dan Murphy September 3, 2009 17:04 - commentComments (5)

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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