With Facebook’s stock price in a relentless nosedive, there has been a lot of talk lately about where the company will generate additional revenue.
It probably won’t be advertising, with big companies realizing people don’t buy cars or TVs or gadgets based on those ads on the right side of the page.
It probably won’t be gaming, as people would rather play on their smart phones or tablets.
And it certainly won’t be in membership fees.
I’ve been asking people this question over the last week: would you pay a monthly membership fee for Facebook, even if it’s just $5 per month or the cost of a latte? Nearly everybody has said no without hesitating.
People pay to read the Wall Street Journal and the New York Times online.
They pay to read magazines on the iPad.
They pay for Netflix, and Hulu.
They pay for cable, wireless phone service, and Web hosting.
They pay for newsletter services and Webinar providers.
But will they pay to stay connected with people they would rather not call or email?
For the vast majority of those oft-mentioned 900 million users, the answer is likely no.
And here’s the key: This is a marketing problem.
Facebook needs to start marketing its value to consumers a lot more aggressively. The company is learning that having 900 million users does not mean having unlimited fast-growing revenue. Facebook cannot rest on its user count.
It must market its value. It must innovate its offerings to consumers aggressively. And just as actively, Facebook must innovate its marketing and communication with consumers.
Monetization depends on it.