Even though I’m a few days late, I’m going to share my thoughts about a Business 2.0 article I ran across this morning (via Facebook, of course) called The Facebook Economy, which, surprise!, gets into the nitty-gritty of making money as a developer on Facebook, thus: the “Facebook Economy.”
Zuckerberg has turned the MySpace business model upside down: Not only is he giving developers their own real estate within Facebook - both inside users’ profile pages and on piggybacked application pages - but he’s allowing them to make money from their apps any way they can, from ad sales to direct purchases of services and merchandise. For example, download iLike, an app that lets you sample and purchase music, and the developer gets a 5 percent kickback if you end up buying songs from iTunes or Amazon.com
The article goes on to talk about the different strategies that app-makers are using to tap into their audiences on Facebook, ranging from hosting ads (I think this is the least likely to take off), to getting sponsorships, to making apps that have a built-in revenue system (a bit like iLike).
If you’re looking at entering the Application space, I’d recommend taking a good look at the bottom this the page - the resources and advice listed there are a solid starting point.
Also, don’t forget to check out sites like Appaholic that let you track and analyze the performance of Facebook Apps, which is how we get nifty graphs like the one at the top of this post.
Of course, while the article is chock-full of great advice for people who are looking to develop and distribute their own apps on Facebook, and looking for ways to monetize them, it’s a bit irrelevant for companies or politicians who are looking for ways to engage Facebook users without alienating them or cutting checks for Facebook ads (not the best approach).
At the risk of pushing a little too hard, the Seattle Web Community Forum is going to spend some time discussing the various way of properly engaging and growing a community on Facebook. If that’s up your alley, be sure to sign up while the at-cost pricing still holds!
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