Facebook is the largest social network worldwide with over 300 million users. It allows users to connect and interact through messaging, groups, photo sharing, and apps. While it provides opportunities for advertisers, maintaining vast amounts of user data requires huge expenditures and Facebook spends more than it earns from advertising. Facebook has struggled to find profitable ways to monetize user data without violating privacy or facing user backlash. Attempts like tracking user purchases through a Beacon program and sharing user data with third parties met significant resistance. Facebook now focuses on developing applications through an open platform.

1. FacebookYurilyn ChezJose LamaLuis Guerrero

2. FacebookLargest Social Networking in the world.Over 300 million worldwide users.Allows users to connect and interact with others trough messaging, groups, photo sharing and apps. Its interface is simple and clean.Opportunity for advertisers to rich target markets.

3. Business toolsNews FeedsProfilesBroadcast MessagesFacebook PagesPromote their productsKeep in touch with customers

4. DisadvantagesMaintaining and transmitting vast amounts of data requires huge expenditures. Even though sales reached $265 million in 2008, it spends more money than it earns. Banner adds sell for a very small amount. (15 cents per 1000 clicks).Privacy and user controls are a large concern.

5. Gaining MoneyIncreasing revenues using the information its user voluntarily provided.Failed.

6. DilemmaFinding a way to turn a profit and increase revenues using the information its users voluntarily provide without violation privacy (and creating a firestorm of users protest).

7. Solution?Beacon Program – 40 large firms. It would track what facebook members purchase at their corporta sites and send them the information. Failed! Hunreds of thousands members organized fierce resistance and turned them off.

8. Third party applicationsFacebook started to create third party applications using developers.Facebook creates the Facebook Platform to create applications. So far, 150 applications have attracted more than 1 million users.

9. Facebook LiteStripped down version with only pictures, comments. For people who live in countries with low broadband.