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SUNDAY, NOVEMBER 8, 2009
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5

Facebook Wants Your Friendship and Your Money

Site rolls out payment system aimed at getting profit from apps

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(Newser) – Facebook is breaking an age-old business rule: Never do business with friends. In a bid to achieve profitability, the social-networking site is testing an internal payments system that allows its 300 million users to purchase credits redeemable for virtual goods, from Facebook itself or third-party applications. “Over time, this will be very significant,” one analyst tells the Financial Times.

Like competitors, Facebook has struggled to monetize its services, but this new system could represent one-third of its income, and experts predict independent developers cumulatively could make $500 million this year from applications. “Potentially, you’re looking at Facebook as a shopping portal and a source for music downloads,” a researcher said. “Control equals revenue.”

In this 2007 file photo, Facebook CEO Mark Zuckerberg poses at his office in Palo Alto, Calif.
In this 2007 file photo, Facebook CEO Mark Zuckerberg poses at his office in Palo Alto, Calif.   (AP Photo)
Mark Zuckerberg, CEO of Facebook, talks during the D6 Conference in Carlsbad, Calif., May 28, 2008.
Mark Zuckerberg, CEO of Facebook, talks during the D6 Conference in Carlsbad, Calif., May 28, 2008.   (AP Photo)
Facebook founder Mark Zuckerberg smiles during a talk at Web 2.0 conference in San Francisco, Oct. 17, 2007.
Facebook founder Mark Zuckerberg smiles during a talk at Web 2.0 conference in San Francisco, Oct. 17, 2007.   (AP Photo)
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5 comments
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drlarrymitchell
Jun 2, 09 3:06 PM CDT
Never gonna happen- Users will Tweet the fuck out. Reply
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+3
Ioptout
Jun 2, 09 3:52 PM CDT
Facebook apps are like the plague. Reply
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+6
Robert_Dada
Jun 2, 09 5:47 PM CDT
F*ck Facebook and it's banality. Reply
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+2
EmilyWSussman
Jun 3, 09 3:07 AM CDT
C'mon.. don't begrudge 'em. Reply
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0
CraigL
Jun 3, 09 10:19 AM CDT
Amazing that you can have a company with a multi-billion dollar valuation without a revenue stream... Reply
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+1
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