The Gang of Three?

Does Facebook have a size or a money problem? Or both?
Sep | 6 | 2012

Sep | 6 | 2012


An interesting piece on HBR claims that Facebook may be too big to survive. From it:

…it only takes a few unsolicited, valueless notifications and the utility of Facebook goes down. It is simply inefficient to spend any of your precious neocortical processing capacity finding out about the lives of people who are irrelevant to you — people who will never be one of your 150 meaningful social relationships — even if they are friends of friends.

To me, Facebook does not face a fundamental size problem; it has a dual philosophy-money problem. Zuck is fundamentally a product guy, not a money guy. As Cory Johnson pointed out on BloombergWest a few days ago, Facebook uses money to make products; it doesn’t build products to make money. This tension will gnaw at Facebook for a long time. It’s biggest proponents (like me) are getting tired of the spam and shifty privacy policies.

Among the Gang of Four (Amazon, Apple, Facebook, and Google), there’s very little doubt in my mind that Facebook faces the greatest likelihood to fall from grace.

Simon Says

One potential and partial solution for Zuck: Go Freemium, as I advocate here.


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