Facebook as a Business Model

It’s no secret that I am a big fan of Facebook. They have a niche user base, their application is clean, easy to use, and has numerous built-in features. Now with the new Facebook Apps, people can add basically any feature they want to Facebook, assuming the can develop or know a developer. This has led me to think about the Facebook approach to things- the way they develop and the way the actually listen to feedback. Both of these things are very important in the development of a web application.

Looking at Facebook’s progression, it seems they did things the right way. They started off small. To use it, your school had to be added. It gave the basics of a Social Networking App. As they grew, so did their features. They added photo albums and notes. And not just like MySpace had them. The Photos are completely organizable and easy to use. And the notes- you can tag friends and import RSS feeds. When they added the mini feed (which I think people have come to like), there was some uproar, but the people at Facebook spent the next 2 days listening to people and making adjustments. Before they rolled out the new design, they got feedback. They really care about their users.

So how is this a good business model? Facebook knows that without users, they are nothing. So they want their users to have a good experience. And the best part is they are able to make money off of it in a non-intrusive way. Go to MySpace on any given day, and you will be met with an outrageous skin for an upcoming movie, full page redirect ads, or animated ones that are almost as annoying as the animated background your friend is using on her page. Facebook neatly integrates ads into the mini feed, and under the sidebar- and the sidebar ads are from facebook users. It’s a very neat an clean way to do things.

All in all, I feel Facebook is the benchmark of a good web application- it has the right features, a good user base and makes money.