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Fickle User Base May Doom Facebook

Users with no brand loyalty are a shaky foundation to build a long-lasting business on

By Rob Quinn,  Newser Staff

Posted Sep 17, 2009 10:24 AM CDT

(Newser) – These are rosy times for Facebook, but there's no guarantee the social networking juggernaut will even be around 5 years from now, Gary Andrew Poole writes for True/Slant.  The newly profitable site is riding high, with 300 million users. But as fallen giants like AOL and veterans of the dot.com implosion attest, "our expectations have changed," Poole writes. "Brand loyalty has diminished and companies tend to go bust much more quickly."

The trouble with Facebook and other Web 2.0 ventures, Poole writes, is that their value comes from their users—and it can easily evaporate when those users move on.  "I like Facebook. I like Twitter," he writes. "But do I have loyalty to them? No, I have loyalty to the user-generated content, and that is not something they control."

Facebook recently announced that it has reached 300 million users and is covering its costs for the first time.
Facebook recently announced that it has reached 300 million users and is covering its costs for the first time.   (AP Photo/The Canadian Press, Sean Kilpatrick)
Facebook founder and CEO Mark Zuckerberg smiles at the annual Allen & Co.'s media summit in Sun Valley, Idaho, earlier this year.
Facebook founder and CEO Mark Zuckerberg smiles at the annual Allen & Co.'s media summit in Sun Valley, Idaho, earlier this year.   (AP Photo/Nati Harnik)
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I think the nature of today’s tech companies and our very culture has made most companies expendable in our minds. Just ask the folks at MySpace. - Gary Andrew Poole

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COMMENTS
Showing 3 of 9 comments
schmidtkoff
Sep 17, 2009 4:21 AM CDT
as a previous owner of several dot com domains, i again say get your own dot com. facebook is for the wimps that have nothing to say and wait for others to validate them. yuck. just like politics. get your domain, build your base and get into the top tier of google. facebook is a cop out.
kyleleitch
Sep 17, 2009 2:20 AM CDT
@ Spudsy, I'm afraid it's true... I've only ever sent free gifts, but the ones that facebook offers outside of the 'free gifts application' actually cost you money on your credit card!
kyleleitch
Sep 17, 2009 2:19 AM CDT
@Forderon, if facebook is 'all about the people' then explain to me why Mark Zuckerburg has come out multiple times saying that facebook's main goal was to generate profits through advertising, why they've redesigned their site several times to increase the number of ad views, and why they continue to invade our privacy with Beacon and shifty Terms of Use contracts.

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