Today has been years in the making, the day when investors get a return on their investment. That investment has been in Facebook, the largest social media network in the world. In only eight years, Facebook has over 900 million users around the world, and a estimated worth of $100 billion dollars. The IPO starting price was at $34 a share and it increased at the end of the day at $38. Mark Zuckerburg, reportedly sold over a billion dollars of shares to pay back the massive tax bill acquired on his liquid fortune. Thus, flooding the market with Facebook shares along with other investment companies selling a massive amount. Facebook is a broadcasting tool, it organizes how you broadcast life to the digital world. Now the question on everyone’s mind is where is my share?
You don’t deserve a magical check in the mail from Facebook Inc because you’re on the website. There is no way to analyze members individual contributions to the website as a whole. You don’t go asking Tim Cook for a cut of Apple’s profits when you buy an iPad. The people who have Facebook shares got into the game early. Venture capitalists, private investors, and insiders with discounted pricing to Facebook’s direct stock bin. Zuckerburg have brought his shares for $6 a piece and everyone got paid in the beginning with Facebook stock. Now that companies heavily invested into a free platform, there was direct pressure to become public. Facebook outgrew Myspace and every other social media platform because it’s addicting. Addicting not in the same sense as Myspace was, your life is embedded into Facebook. Your experiences, photos, locations, former employers, relationship status, interests, all are accessible to anyone who is your friend. Facebook is the virtual resume, the digital newspaper, entertainment center of the web. It’s almost impossible to meet someone who doesn’t have a Facebook profile. Facebook is social online management of your real life.
The Like button has been directly responsible in transforming Facebook into a positive online experience. Before the Like button was developed, users had to write their comments, thoughts onto other users and company pages. The Like button categorized interests into a profitable way. Companies could track their demographics and other socioeconomic information from their likes and surveys. Facebook was a bland experience with minimal interaction, before the Like button. Now you can like a friend’s status, photo, or a company’s new product. You already put how you felt in a single gesture, now that has major revenue power in capitalizing popularity from a business standpoint. They can see that interaction,adapt new business models and formulas to fit the needs of the consumers. Companies like Coca Cola have spent billions a year on direct advertising, now the Facebook logo has appeared on multiple websites. Click to like us, they want that feedback for direct product development. They want to know how many people are interested. It’s all about attracting interest to put products and services into the hands of the consumers. There won’t be a dislike button added anytime soon or ever. Facebook needs to continue the positive user interactive experience while tacking privacy issues. That’s another issue in itself. The phenomenon that is Facebook is incredible, it’s too big to fail like Goldman Sachs. There are too many members for the site to break down like social networking sites like Friendster and Myspace have done in the past. The demographics are wider with people from thirteen to people in their eighties using Facebook. The other sites failed incorporate a platform for college students, they were stuck on the younger audience. Myspace failed to adapt to the new climate where Facebook has been changing as much as the users have.
The algorithms within Facebook organizes the user’s Newsfeed content based on their interactions. Notice if you have over seven hundred friends, you only see about a hundred of them on your Feed. There is an option to see a direct feed, but no one wants noise on their Newsfeed. They want to see their friends and loved ones posting enjoyable content. Subscribing to people’s profiles, it’s a computer algorithm to collectively organizing your interests. It’s a sociological online web that connects everyone together. The plots help secure your interests by suggesting new friends, people you may know based on a mutual friend count and product association. That’s one of the reasons how Facebook differed themselves from other social networking platforms. It was more about identification then creating a fake online persona. One of Facebook’s first goals was to establish users as being real, using their real names etc. There was no hiding the facts of who you were. You couldn’t assume a imaginary identity. Facebook started on as a online directory for Harvard University college students to seek other students with the network. Now it’s a global networking brand worth billions. The challenge ahead is how to continue and expand on the user experience. Facebook can’t be restrictive in their options to add growth to the company. The problem is how to address the needs of the mass population while growing exponentially forward.