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.
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.