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Thursday, February 18, 2010


Internet is a great collection of freebies. All software, websites, raises popularity by offering their services free at the beginning. Later they change their way of approach and make some of their services through small payments. This was found effective in preventing spammers as well as concentrating more on paid users. Paid users get much benefit than normal users. This technique was successfully implemented by Yahoo, Blogcatalog etc. They entertain most of their customers Free of cost and earn revenue through advertisement display. Premium customers like corporates, pay and enjoy some additional benefits from the company.

At the beginning, Facebook was a slow picker in internet social networking business. The impressions and hits were much low when compared to major competitors like Friendster, MySpace, Hi5 etc. Facebook was learning from their initial faults. The process of introducing more interactivity to Facebook users, increased the popularity of Facebook quickly. Integration with other applications was one more important aspect of success behind Facebook. If you own a Facebook account, you may login to  around 15% other websites in internet.

Facebook grew like a giant within a span of few years. Like any other free service, spammers used Facebook to link ads, create links,spread links, fake accounts etc. Facebook suffered this and continued its free service by designating advertisement as the major source of income. Things went wrong when the popularity increased  and the load of maintenance started creeping up. Like any other internet business, Facebook also started looking some ways for increasing the income  and reducing maintenance cost.

Facebook may be deciding to double its revenue by starting premium services as the major focus. A classic example of a popular free email service was in front of them. A mild payment could change the entire story of Facebook. They can double income, gain more trusted long term users, and reduce spammers.

Google Buzz The entire plan was flushed out by one action from Google. The introduction of Google Buzz was a hit from back for Facebook. Here Google played a genius role by introducing Google Buzz through Gmail. A mail box is the one that was missing in Facebook services. Now Facebook in big dilemma whether to continue their plan of implementing paid services or to go as a freebie forever.

Google took such an action not to introduce Google buzz as a separate service because of some interesting  reasons.

Gmail customers are well targeted and integration with Inbox will be much easier for people to create Buzz. Single login can help you to email and buzz. Also the mode of Buzz was similar to Twitter. Both Twitter and Facebook lack independent email services with huge storage options.

Recently, Google Adwords was feeling much competition in campaigning advertisements with  Facebook. Even though, advertisers felt much comfortable with Google, some of them started trying Facebook also.

Next step of Google seems to be integrating Adsense with Google Buzz. Selected and controlled advertisements through Google Buzz will be much appreciated than Twitter advertisements. (So what are you waiting for? Add businessvartha also in your buzz)

Now the war started. Facebook fighting with Friendster,  and Google fighting with Twitter and  Facebook. Being a customer, I am looking about the chances where we can gain from this “SOCIAL NETWORKING WAR”

Who will gain more popularity, lets get the final result by the end of November 2010. It is much interesting that whether Facebook will implement the plan of making it as a fully paid service or not. Hopes that we will get the answer for this question also in few months.


Mel Avila Alarilla said...

Thanks for the information. I will decide whether I will still remain in Facebook or not when that scheme is implemented. Thanks for the post. God bless.

Art by Tomas said...

Dear Reetha, Thank you for so comprehensive overview of “SOCIAL NETWORKING WAR” Your post enabled me to grasp the meaning of 'for a free" much better for to enjoy more what Google and Facebook still offer to me at no cost.
The future look warning, yet I still have some time to share my love with all on a web, so am glad to welcome you to my online art gallery for a free.

Cynths said...

there is a movement going on to stop making FB a paying site in the future. They need about 3,000 members I think.

You have a wonderful blog! I followed it, I hope to see you in my blog too my friend! and I hope we can be friends here in blogspot. More power!

Aswani (Admin) said...

Excellent article. Well, the battle begins now. I remember..just a few days back, I was invited to join a group named something - We will not pay for facebook. At first, I didn't get anything. but later I come to know that the group was created to let others decide if we should be paying for using facebook or not. Most of them said "No" I was also one of them. I think this Google Buzz has made the difference. Something to make facebook think before it starts any kind of paid usage to its site. I think that facebook will keep away from it. And if they try making it a paid service then I think its popularity will go down in no time. I agree spammers are headache but there should be any alternative solution for the same. Just making it a paid one, won't put an end to all these. Already, facebook is popular like anything and its making lot of money through paid ads..shouldn't make much difference..I think.

Reetha said...

Thankyou Mel, Art, She and Aswani, for commenting. Mel, your decision is great, Art, the real war yet to begin, She, thanks for the great complements, Aswani, great observationzz.

Make Money Online said...

thank u for this informative post

Chris said...

You make some interesting observations and comments. From industry people that I have spoken to given that Facebook is taking paid ads, that revenue stream is really taking off. And now that Facebook has more traffic in the US than Google (no kidding) then this cash flow may become very very tangible. Maybe Facebook will have less desire to charge for access. We'll see.

Mala Mustatea said...

...shared through my networks.we wait to see what it will be !

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