Periodically, someone in my Facebook feed will post a link to a Facebook Page about the “Keep Facebook Free Revolution” or “Stop Facebook from charging $4/month“. Until this point, these have all be hoaxes that tend to generate a lot of Likes and Shares, because people want Facebook to be free and get irritated when they hear rumors of Facebook proposing charges.
In fact, Facebook has done a pretty good job of reassuring users that they will continue to be free by posting it on their blog and by posting it clearly on their login page.
Obviously, the tradeoff to Facebook being free is that they have to monetize the site through Ads. This means ads in your timeline and ads in the right-rail of the site. For the most part, I think users are okay with the ads, as long as they are targeted to their needs and aren’t obtrusive to interacting with Facebook. Up until now, however, Facebook has had the luxury of being a privately-held company, which means they aren’t beholden to the whims and fancies of public investors. With that about to change, I have grown more curious as to how they will handle the pressure from their public investors to generate revenue.
Which leads me to the nugget!
14. We do not guarantee that Platform will always be free.
I just logged in and the front page of Facebook clearly indicated “It’s free and always will be.” Right?!? Free…always?!?
The disparity between the two likely lies in the target audience. By stating “It’s free and always will be.” on the front page of Facebook, the company is communicating to end-users that they intend to keep Facebook a free resource for general users.
The question is how much, and whether brands and developers would be willing to pay to participate on Facebook. We know that social gaming accounts for a massive amount of time on Facebook, so if developers like Zynga found it more lucrative to publish their games elsewhere due to high charges by Facebook, would it also lead to a bleeding of Facebook users to other platforms? Who knows.
- Will Facebook start charging for access to their development platform?
- If so, when will they start and how much will the charge developers, brands and publishers?
- If Facebook does start to charge, will the costs drive developers, brands and publishers to other platforms?
- If the developers, brands and publishers leave will Facebook users leave, as well?
While there hasn’t been any indication by Facebook that they’re going to start to charge developers any time soon, it could be something that we see arise soon after their Initial Public Offering (IPO), when the company becomes more beholden to their shareholders, rather than their users. I guess we’ll find out soon enough…
What we do know is that while Facebook is free for users, developers, companies, and organizations…it has become a huge part of our life, impacting how much time we spend eating, sleeping, and even caring for others. Would charging developers impact that passion? Only time will tell.
Have thoughts or questions? I always love to hear them in comments!
Friday 10th of May 2013
If they charge at some point so be it. I mean there is a sense of entitlement in the internet community that is unfortunate. In fact I think there is an entitlement to an entire generation now. As the saying goes, there's no such thing as something for nothing. You're gonna pay for it one way or another right? We're getting something for free or more so we're getting it to see a few ads (and more likely ignore them, and/or use adblocking technology) Seems we're getting a pretty sweet deal.
Thursday 19th of April 2012
hmmm... interesting. The word "free" is as misused recently as the word "live" TV. A recent advert on TV offered a phone "Free for just £28 per month". Language is more and more being manipulated to make it mean whatever a company wants. FB is, slowly, digging it's own grave, I think.
Wednesday 18th of April 2012
Sounds like something the lawyers added. I cannot imagine that the developer community would take kindly for paying to develop FB apps. FB could however possibly support an app store for customers to purchase apps but only if they did something really worthwhile and not already provided.
Sunday 15th of April 2012
I'm so fascinated by Facebook as is everyone else. It's incredible that they have changed our lives. This article is super. I great point to stir up!
Saturday 14th of April 2012
Nice Analysis. With quarter to quarter earnings, there will be extra forces on Facebook to drive profitability in a continuous growing cycle.