Internet Business Strategy
I have observed that internet concepts make a profit using one of two basic strategies:
- Develop an internet concept the world really wants. Keep the concept free of advertising—initially. When the users reach a certain psychological state where it becomes difficult to move to a competing internet concept, put in the advertising.
- Develop an internet concept the world really wants. Allow a basic, yet engaging, version for free. Sell an advanced version if users want to better their experience.
Facebook has chosen the first strategy. And should we fault them for putting in the advertising? It was their money that provided the coding and servers which allowed us to communicate in this way. They should be allowed to define how their assets are to be used by the world.
Given the reaction I had seen from many Facebook users after the change was made, maybe there's a better alternative.
