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inside facebook mark zuckerbergs free social media network business for online friends

Inside Facebook, Mark Zuckerberg's Free Social Media Network Business for Online Friends

A look Inside Facebook and Mark Zuckerberg's Free Social Media Network Business for Online Friends. How do you explain the overwhelming success of this online phenomenon. What makes Facebook work as an online social media business? Is the network of friends and groups sharing minutia of their lives? Is it the prescience and conviction of its founder Mark Zuckerberg? Inside Facebook you'll find the real story.

Look inside to find out what makes Facebook unique. Facebook is the New Free Online social media friend network. Facebook builds you a network of friends and comments, based on the people you like. Facebook gives you a free online presence and a virtual life. And Mark Zuckerberg is the maestro of this social media network, the man who keeps your online media life moving in groups of friends, statuses, images, likes and comments. On Facebook, you have a customized, endless page of social contacts, where your likes and dislikes matter. Facebook is an online social media network that's cool and personal and free.

Founder of Facebook
Mark Zuckerberg
Facebook is a social media networking website chosen by 845 million active users to share their personal lives with friends. It's where people hang out and meet each other virtually. On your Facebook page, you can introduce yourself with a personal profile and post your status. You invite friends to your Facebook, leave comments on a friend's page and vice versa, post your pictures and funny comments, share your web links, join special interest groups, play games, and announce events. Facebook keeps track of your interests, comments and likes. You get an automatic email whenever there's something new on your page or the pages of your friends.

Yes, Facebook is a free social facilitator that many people can't live without. But it's not just about content, it's about shared connections with friends. Facebook says "Our mission is to make the world more open and connected." This is the epitome of a web 2.0 business, the socialization of the Internet.

Here we discuss what's inside Facebook and Mark Zuckerberg. Find out what users of this free social media network, as well as advertisers and investors, like about Facebook. Find out Its features, how it was started, its advertising strengths, company finances, the IPO, and prospects for the future.

The Features of Facebook

Facebook has rolled out new features to engage its users. Timeline makes it easy to scroll through a userís entire history. Chat lets you and your friends keep in touch moment by moment. Facebook has brought Ticketmaster onto the platform, and partners with the music service Spotify. The major game provider for the platform is Zynga, with games like Farmville, Cityville and Mafia Wars. Also in the works is its own proprietory Facebook mobile phone.

Social Data at Facebook

Behind the scenes, Facebook is a dynamic data processor with an enormous database of personal information collected, archived and analyzed. You can think of the business as a distribution platform for content provided free by the users. As a result, person-to-person communication is borderless, news is updated instantly, and political activism is encouraged. There are thousands of social networks on the Internet, but only one Facebook.

How Facebook Became a Social Network

Facebook was created by Mark Zuckerberg in 2004 while he was a sophmore at Harvard. A Facebook is the colloquial name for any college directory with names and photos of people on campus, to help students get to know each other. After the new social network was introduced successfully at Harvard and other Ivy League schools, Facebook was expanded to other colleges, high schools and finally, to anyone at least 13 years old. Released in 2010, a successful Hollywood movie The Social Network portrays Zuckerberg and his friends in the early days of the startup. It was based on the book The Accidental Billionaires by Ben Mezrich. A lawsuit filed by Tyler and Cameron Winkelvoss claiming that Zuckerberg appropriated their ideas for a social network site has been settled and sealed.

Financial Side of the Social Media Business Inside Facebook

With 845 million users, Facebook is doing things right. Revenues in 2010 were $3.7 billion with net income of $1 billion, for an enviable 27% profit margin. It has the eye of investors who are drawn to lightning fast growth and profit potential. The major sources of revenue are advertising fees and a share of revenue from Zynga. Game maker Zynga, which went public in 2011, generates more than 90 percent of its sales from Facebook. Facebook Credits are virtual currency worth10 cents each. They are used to purchase virtual merchandise for games and gifts. The company is still a newbie at monetizing its success. In 2011 company profits were just over $1 per user.

The Free Social Media Network Goes Public: The Facebook IPO

The Facebook IPO in 2012 is one of the largest of all time, putting a value of almost $100 billion on the company. The stock will trade on Nasdaq with the symbol FB. Revenues are increasing quickly off a low base as new advertisers come on board. Facebook runs a lean operation with only 3,200 employees. CEO Mark Zuckerberg has 28% of Facebook shares and controls 30% more by his voting proxy, which gives him a combined voting power of 57%. More than 1,000 Facebook employees with stock options became millionaires on paper.

Advertising is the Real Business of Facebook

As a new player with just 3.1% of the global advertising market in 2010, Facebook has plenty of room to grow. Already it has a 27.9% share of the display advertising market in 2011. Among its competitors are the advertising networks of Google, Yahoo and Microsoft.

Its advertising platform is remarkable for its ease of use. And Facebook has moved aggressively by introducing ads delivered to each user with their News Feed. Ads appear seamlessly so that you don't even realize you're reading an ad. At this point, users get an ad, called a Featured Story, only if they or one of their friends have Liked the advertiser.So if one of your friends likes Ben & Jerry's ice cream, you could see a lot of Chunky Monkey ads on your page. Facebook has also introduced coupons as premium ads.

With its database of user Likes and Interests and Friends, Facebook offers marketers a unique service for ads that are narrowly targeted by location and preferences. Facebook will boost revenues even more if and when they introduce mobile ads, too. There are many novel ways Facebook might market its database of consumer preferences.

Another possible revenue source could come when Facebook Credits can be used to buy other consumer goods or user services. Other revenue sources for the social network business are dating matchmakers, pay-per-view television and video.

The Future of Facebook's Free Social Media Network Business

Prudent investors should ask themselves a few questions before they buy into Facebook.
  1. Is Facebook really worth $100 billion to investors for what is essentially an online message board? Is this another social media bubble, or is it a sustainable phenomenon? Will revenue growth from its advertising business be fast enough to justify paying a P/E of 100 for the stock?
  2. Will Facebook lose its cool with users when the next big thing comes along? There are lots of social networks that have bit the dust and new ones open up frequently. Google+ is one such competitor. Other platforms like Myspace, Orkut and Friendster failed to meet expectations. For Facebook, the growth rate of new users has slowed in the United States, as happens to any maturing product. And Facebook estimates that perhaps 6% of its accounts are fake.
  3. For its mobile traffic Facebook is dependent on Google and Apple to deliver the site to smartphone users. Facebook needs a mobile phone of its own, and is expected to develop one through acquisitions of mobile businesses.
  4. CEO Mark Zuckerberg is the ultimate person in charge, and has the sole right to appoint his successor. Investors have to decide if his decisions will carry Facebook forward, or run it into the ground.

I wish you much success in life. I hope you have a very happy day.

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