As fast-growing Facebook closes in on MySpace in the U.S. in terms of unique visitors later this year, it’s burning through millions of dollars a month (some claim it’s as high as $20 million), with no magic levers to reverse the trend in the short term.
In November 2007, when Facebook took a $240 million stake from Microsoft, the investment was at a $15 billion valuation. Now it’s down to $4 billion and probably less. As Caroline McCarthy reported a few days ago, rumor has it “one potential investor submitted a term sheet for a valuation in the neighborhood of $2 billion.”
As Facebook works its way toward a probable IPO, the big question is how can it show it can make money? Well, one way–and I’m not the first to suggest it–would be to charge a nominal monthly fee. With that in mind, I ask a simple question: how much would you be willing to pay to use Facebook per month?
A lot of people I ask say they’d pay $1 a month–or preferable a yearly fee of $10 if paid in one shot. But some say they have Facebook fatigue and would rather quit than pay a dime.
Comments?
$12 bucks a year. Easily!! I have found so many old friends on Facebook that it is well worth paying for.
I don't like it anyway. That would be a great reason to quit!
Hi Kurt,
Thanks for the comment. I get a mixed bag of feedback on F.B. as a whole. Some people just don't see the value in social media but all in all, the biggest positive feedback I get on its use is the connection through the system to old friends and family. After that, it's the marketers using it to promote products and services. That being said, some friends and family members are marketers! Go figure.
Story