Friday, June 15, 2012

Facebook Paid user accounts


With Facebook wiping $30 Billion off their valuation since the initial IPO investors are getting nervous and users are wondering if accounts will become paid, reports Think Big Online.

With Facebook wiping 11% off their valuation since the initial IPO investors are nervous. In fact USA Today reports 3 investors have even taken to court to sue Facebook and it's backing Banks. But expert Lucian Parfeni stated that "Facebook's stock price tumble may finally be ending" and this appears to be the consensus of other high profile advisors.

In a recent blog post Samuel Junghenn commented "The people who should really be scared are not the investors, the people who really should be getting prepared are the users like you and me. You see, there's significant pressure on Facebook to generate profits, especially now the IPO has gone so horribly wrong."

This doesn't appear to be far from the truth. Alexander Paslawsky from Seeking Alpha believes the quickest, way for Facebook to increase revenue and quickly reverse the downwards spiral of the stock is to monetize their 800 Million users. Which could lead to users receiving an email asking you to pay for their account.

Before users disregard Alexander's comments, it's important to note that Facebook has a history of ignoring user backlash. A quick Google search resulted in over 990,000 web pages commenting on the latest user backlash from the Facebook Timeline change.

Charging users will be a last resort considering sites like Facebook usually charge it's corporate users so the everyday user can have Free access. But Facebook has shown their disregard for this concept with the release of highlighted posts to regular users in New Zealand.

Just a few weeks ago in a "test" of new functionality Facebook released to New Zealand Facebook users the ability to pay to promote one of their posts. Facebook spokeswoman Mia Garlick in a conversation with Stuff confirmed the tests "We're constantly testing new features across the site. This particular test is simply to gauge people's interest in this method of sharing with their friends."

The promoted post would be shown to more users and as a result achieve more views and interactions.

Samuel Junghenn the owner of Think Big Online and a recognized internet marketer says "Facebook are facing immense pressure right now to show a strong profit growth this quarter. When a company of this size is facing this level of pressure generally they do extreme things. "

"As a user these paid posts are a real concern for me, I've got photos, comments, messages and friends on Facebook I just don't want to lose. Facebook knows this and it gives them a lot of power so they will be under a lot of pressure to do the right thing. " said Mr Junghenn.

"It is a community driven platform so they have to tread lightly, because if there is no community there is no Facebook."

Samuel Junghenn is the Owner of Think Big Online which is a website development and internet marketing Agency based in Sydney. As well as building visually engaging sites Think Big Online provides consultancy services on SEO, Social Media and Digital Strategies.

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