Friday, October 10, 2008

Facebook don't need no stinkin' business model

Interviewed by Germany’s leading newspaper, Facebook CEO and founder Mark Zuckerberg explains why his current lack of a business model is no big deal:

…what every great internet company has done is to figure out a way to make money that has to match to what they are doing on the site. I don't think social networks can be monetized in the same way that search did. But on both sites people find information valuable. I'm pretty sure that we will find an analogous business model. But we are experimenting already. One group is very focused on targeting; another part is focused on social recommendation from your friends. In three years from now we have to figure out what the optimum model is. But that is not our primary focus today.
I loved the comments, including this one (even though it’s an obvious shill for selling a $400 report);
In the oblivious parallel universe, growth has nothing to do with revenues, and so it is for Mark Zuckerberg, CEO of Facebook,
Facebook is the quintessential Web 2.0 startup, and thus epitomizes the indifference of Web 2.0 startups to making money.

Hat tip: Good Morning Silicon Valley, Oct. 9, 2008

1 comment:

Mazi H. said...

Haven't we been down this road before? "Make money? We'll get to that later, don't ruin the fun!" I am beginning to think that the VCs are using Facebook as their resume builder. It doesn't matter if they get their investment back, its more like advertising where they can say they are the major investor in Facebook and they can proclaim "You can trust us new startup who wants money!"

The only reason Zuckerberg is still around is he brought the audience to the table first, then got funding. Try it the other way around and you'll get laughed out the door, especially in these market conditions. I bet his backers are really overjoyed to see his comments.