Comments on: What’s It All About, Facebook? http://www.thecatalystcode.com/theconversation/blog/2009/03/16/what%e2%80%99s-it-all-about-facebook/ The Catalyst Code Wed, 08 Feb 2012 08:26:26 +0000 http://wordpress.org/?v=2.0.11 by: Kevin http://www.thecatalystcode.com/theconversation/blog/2009/03/16/what%e2%80%99s-it-all-about-facebook/#comment-14464 Thu, 02 Jul 2009 20:19:20 +0000 http://www.thecatalystcode.com/theconversation/blog/2009/03/16/what%e2%80%99s-it-all-about-facebook/#comment-14464 Facebook like sites face the risk of entering a downward spiral. A $2 annual fee will not be acceptable to many web purists. Today's paying customers will want to pay less, not more as the users and usage fall. Free alternatives will pop up and 1 or a couple will become the new, new. The success of Twitter provides some indication of how thin the loyalty factor is with these models. All this is likely to weaken corporate appetites as costs begin to escalate. Too many sites with little data to proove an ROI. I'm not sure how these companies realize the value of the assets they have grown. But it will need to be transformational, not incremental to what has already been tried. Facebook like sites face the risk of entering a downward spiral. A $2 annual fee will not be acceptable to many web purists. Today’s paying customers will want to pay less, not more as the users and usage fall. Free alternatives will pop up and 1 or a couple will become the new, new.

The success of Twitter provides some indication of how thin the loyalty factor is with these models.

All this is likely to weaken corporate appetites as costs begin to escalate. Too many sites with little data to proove an ROI.

I’m not sure how these companies realize the value of the assets they have grown. But it will need to be transformational, not incremental to what has already been tried.

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