Finally a business model for Facebook: write to Zuckerberg for 100$

In 2001, many investors swore and swore that they would never again be caught in an Internet bubble like the one in 2000, and twelve years later a 27 year old guy has messed it up again. Zuckerberg took Facebook public last summer with a $100mM valuation and no clear revenue.

Unlike what happened in 2000, Facebook does generate revenue, in this case from advertising, but this revenue does not justify a valuation as high as the one at which it went public, let's be clear, Google earns its living from advertising, period. That valuation was based on expectations, mainly linked to the evolution of sCommerce, i.e. social e-commerce, something that has already proven to be a fiasco.

Or rather with an income so clear that it was inflated.

Shortly after, when the share price drops to half, he says they were iterating. For those who don't know the term, we talk about iterating business models when startups test new products in the market without knowing how they are going to make money. But companies that go public do not iterate, Facebook must have come iterated from home.

Now we are being slammed with messages of 1$, and 100$ if it is the head of the pyramid scheme; yes, this type of business model is what has always been called a pyramid (scam). If it were not for the fact that it is Mashable whoever publishes it would think it was a prank.

Note that this summer: Zynga had already gone from $11 to $3; Netflix, from 300 to 57; Groupon, from $20 to $6.6...Falls in less than a year. Facebook, from $42 to $26, in just two months of trading. Now they are even worse.

Bright second-generation dotcom and Web 2.0 companies that started trading on the Nasdaq index, lose much of their market value in less than a year. And there are still people in Spain who try to copy the model, when sometimes, as Agustín Cuenca says, being second is an advantage.

In the meantime, Google, Amazon, and Apple are splitting hairs.


Comments

One response to "Finally a business model for Facebook: write to Zuckerberg for 100$”

  1. Indeed, it is essential to have a well-defined business model, having clear concepts of monetization and profitability of the products or services offered.
    It seems that anything goes on the Internet, and any company will succeed, but it is important to see that the valuation is real (in relation to the income obtained).
    A similar case can be the business model called "Freemium", as can be seen in: http://marketingstorming.com/2013/04/04/gratis-y-rentable/

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