Facebook and Revenue: A Little Thing We Call Business

As I was reading through the San Francisco Business Times this week (March 19th-25th), I ran across a short article entitled, “Report: Facebook tops Google for visits.

There has been speculation as to how Facebook is going to create revenue. Upon reading this article, it dawned on me how I feel they can really begin tapping into a revenue stream, while also regulating the (oftentimes) annoyance of Fan Pages.

Here is my suggestion for a Facebook Revenue Stream: Charge for Facebook FAN Pages.

I’m hearing the yelling and screaming at me already. But hear me out. Here are my 3 reasons how/why:

1. Numbers Don’t Lie.
Fact: “Facebook tops Google for visits.” If marketers and advertisers are willing to spend hundreds, thousands and even millions on more “traditional” marketing and advertising (TV, radio, magazines, etc.) then why should they expect to pay nothing for utilizing the Facebook Platform? Even if a company wanted to utilize Yellow Pages for Business, they would have to pay. Facebook clearly has an enormous reach. They have done this through years of building, developing and maintaining a fabulous platform that people want to go to. From The Field of Dreams, “Build it and they will come.” Facebook has done their part. They have built this commonplace – this field of dreams – for any and all to take advantage of.

2. Facebook Allows Prospects to come Knocking on Your Door.
Revenue Stream #1: Charge for the Fan Page Database. When someone becomes a “fan” of your Fan Page, more often than not it’s because they already use your product, want to learn more about your product or are thinking of purchasing your product in the near future as a customer or consumer. In any case, they are there. They are waiting on your doorstep.

Facebook should charge Fan Pages on a “Pay Per Fan Base.” Google charges for “Pay Per Click” Advertising.Constant Contact charges for the number of emails you store in their database. And Facebook could charge for your total number of fans, incrementally, so that there is an “equal playing field” for smaller companies/brands and larger companies/brands.

This, in turn, also makes it a more effective Fan Page. Smaller companies/brands may not feel the inclination to “spam” anyone and everyone to try to reach “x” amount of Fans.

3. Regulate Fan Requests & De-Clutter Feeds.
Revenue Stream #2: Charge for the Creation/Implementation of Fan Page. How many times a day do you get a Facebook message or notification from someone that says something to the effect of, “Susie Q. suggested you become a fan of 33 ways I’d like to tell my daughter’s teacher that homework on weekends is not okay?

And of those times, how many times are you either: A. Super annoyed B. Ready to “de-friend” that individual or C. Willingly accepting the “Fan” invite? I would gather more often than not you are in the A or B, not C, categories. Many times, someone sends you the request because they have some vested interest in the Fan Page. They are either the creator of it, are paid to promote it or they simply work for the company/brand. But if Facebook were to charge first for just setting the Fan Page up, that would discourage many of those in the first place. Furthermore, if it’s an honest and true Fan Page for a company or brand, then they may be more strategic about “who” they are inviting to become Fans. (Because remember, you would be charged incrementally for the total number of Fans you have.)

The Bottom Line: Clearly Google has been a marketing and advertising venue that companies have been more than willing to pay for. And now that the numbers have started to depict an image where Facebook is having a similar reach, why can’t they make the case for charging in some way, shape or form? Because it offers such value, I would have no problem paying for these Fan Pages if it meant that my client’s reach would still be widespread, while reducing the amount of “clutter.”

Don’t charge people for using Facebook, charge people for using it to profit. It’s called business. And at the end of the day the goal for your business and for Mr. Mark Elliot Zuckerberg’s business is profit and success.

High angle view of a stack of antique coins on a financial newspaper