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    This story comes from the Yahoo! Contributor Network, where individuals publish their unique perspectives on some of the world’s most popular websites.
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    COMMENTARY | When it comes to making a lot of money, Facebook seems to have no trouble. According to a report from TechCrunch, 2011 was a definite "like" for Facebook clicking in with $1 billion in profits on revenues of just over $3.7 billion. As the article states, Facebook clearly knows how to make money off of businesses, since advertising accounts for 85 percent of revenue. But, Facebook seems not really know how to get its 845 million users to spend anything but time on the site.

    A report from Bloomberg indicates several Facebook Stores have closed in the past few months, including J.C. Penny, Gamestop and Nordstrom. As the report mentions, Facebook could have sold more advertising to businesses to drive customer traffic to their Facebook Stores, which is actually a great idea.

    Unfortunately, as Business Insider reports, the Facebook stores did not bring in any type of significant sales figures. If Facebook had any dreams of giving Amazon or eBay a run for their money, those dreams have pretty much ended. Every website has place in users' lives, and apparently shopping is not synonymous with Facebook.

    However, Business Insider brings up a good point by wondering if Facebook can get the $100 billion valuation it is looking for via IPO by just selling advertising. Valuing a company at around 100 times its profit seems like a risky strategy for any investor.

    Facebook is a popular website, and it already makes a ton of money, but to make ridiculous amounts of money the social network is going to have to find another way to make money. 845 million users should be a bit nervous, because once the company goes public the game changes along with expectations from Wall Street.

    Facebook could soon learn the difference between being an Internet success and being a business success, or it could prove everybody wrong. Nobody disputes that if the social media giant can figure out how to get credit card numbers from almost a billion users, the profits could very ridiculous very quickly.

     

    22 comments

    • Chris  •  Intercourse, Pennsylvania  •  3 mths ago
      I understand that when you go on FB, YOU'RE what's being sold (which is partly why I don't go on) but outside of that, there's no value to facebook. Everyone's kinda over it now anyway, I sure as hell am. My girlfriend who used to flip through facebook feeds while standing in line has forgotten it exists. Even my parents who joined late have sorta reached the point where they're like "...so...what else does this thing do?"

      The IPO is going to be a pump and dump, there's no future for this company.
      • BlueViolet 3 mths ago
        I see it losing it's luster too. The only way it works is if people don't get bored. The add ons and games should have been made safe to use and then they would have had something.
      • WizardKnight 3 mths ago
        who needs the games and addons? iv'e found old grammar school friends, HS friends. people i thought i would never find again. also good for networking with others in your profession. far as stupid pics and boring - what i did today posts there, i just dont allow those to be seen, easy enough.
    • R.T. Arcand  •  Minneapolis, Minnesota  •  3 mths ago
      What's a facebook?
      •   3 mths ago
        It's a book of faces, it's all it really is.
    • BlueViolet  •  3 mths ago
      Why sell anything in a store? Just keep up the good work offering the site. Why do internet companies always want a physical store. It defeats the whole idea of doing business on the internet in the first place.
    • Rain  •  Wappingers Falls, New York  •  3 mths ago
      facebook is already on it's way out. thats probably why they're trying to sell out and get some cash from investors before the parties over. Once joe q public and yo momma think facebook is the cats pajamas it's all over. if it's not already dying a natural death then turning it into a corporation that we have to "watch out for" will be the nail in the coffin.
    • A Yahoo! User  •  3 mths ago
      shop through FB ... really??? Yeah how about that ... NOT!
    • Tom  •  3 mths ago
      facebook is so yesterday. got tired of the pointless talk and 100's of kid pictures that I don't care to look at.
    • LiFe  •  Moscow, Russia  •  3 mths ago
      Yes, we know that facebook fun, but eventually I quit using it due Mark Zuckerberg's stup!d ideas on not making timeline optional.
    •    •  Coraopolis, Pennsylvania  •  3 mths ago
      Pretty simple concept here. People are on Facebook for social reasons, not for shopping. That's a totally different activity that's not really related to the original task. Facebook is not a one-stop shop. Do you sell groceries at a golf course? No, you can sell shirts and balls, but not groceries. Not the proper setting.
    • Klattu  •  Torrance, California  •  3 mths ago
      We stay in touch with long distance friends from many years ago... thats about all its good for.
    • A Yahoo! User  •  3 mths ago
      The CIA wants you to continue using your account on Facebook.
      • Christopher 3 mths ago
        They also love it when you use your Yahoo account and watch TV commercials while eating Monsanto grown food and taking your Dr. prescribed medications....
    • William S  •  Las Vegas, Nevada  •  3 mths ago
      Only fools Facebook!
    • JackylofArizona  •  Tempe, Arizona  •  3 mths ago
      I Love Facebook...you can claim that you hate it, you never use it, but it is projected by this summer 1 Billion people will have Facebook accounts, so even though you hate it, 5 other like or love it....
    •    •  Coraopolis, Pennsylvania  •  3 mths ago
      I opened up a kiosk at the mall where people can sit down and use Facebook. It really never took off and I went under. I guess Facebook and shopping aren't really related.
    • First L  •  Jacksonville, Florida  •  3 mths ago
      who edits these articles.....they should be fired
    • Caroline  •  Richardson, Texas  •  3 mths ago
      Did the author even proof read the article before posting?
    • Christopher  •  3 mths ago
      People who network intelligently make money from FB contacts...
    • David  •  West Fork, Arkansas  •  3 mths ago
      Facebook is a convenient way for everyone to keep track of you.... Governments, employers, stalkers, pedophiles, murderers and all those in between.... Drop it like a hot rock.....
    • GEORGE PORDGE  •  3 mths ago
      What? Is this news????
    • Country Joe  •  Irvine, California  •  3 mths ago
      I was never a member of facebook mainly because I don't want to hurt someones feelings by not wanting to be their "friend".
    • Philip  •  Sydney, Australia  •  3 mths ago
      I wouldn't even spend time on it ...
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