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Is Facebook making desperate attempts to satisfy investors?

Facebook shares continue to lose value

Facebook share continue to spiral downward. After an opening high of about $38 shares are not trading around $27.

  • Find out Facebook’s next move in an attempt to satisfy investors…

Today I want to talk to you about Facebook again. It is always dangerous to me when a social media platform announces it is going public. And now that Facebook is trading on the stock market, my point is becoming painfully clear. I hope you did not buy any shares, since the stock has been in a steady decline since its inception. Quite frankly, I am not surprised. After all Mark Zuckerberg, who did a great job starting up Facebook, is not the right person to lead the company in the next phase in its existence. It is a well known fact that only very few are able to lead a company in the start up phase and in the growing phase. It requires completely different talents to do both jobs and only few have the talent to handle both effectively.

Furthermore, Facebook is a social media site. This does not by definition mean that you can not make money off of it, but it does mean that it requires a different focus to pull it off. Facebook seams desperate to make money off of the 900 million users it has. It has come up with promoted posts. The concept is simple. As the administrator of a page, you can promote a status update by paying Facebook money. Facebook in return will show your post to more of your “fans”. Fans that would not normally see your post, even though they liked your page.

And this is where I start having a problem. Facebook is only showing your page to people that are active on your page, not to everyone who has ‘fanned’ your page. But if you pay for your page, the social media giant will show your sponsored post to a larger audience. In other words, as long as you pay, they are willing to show your status update to people who are not actively engaging on your page. But why is it ok to put a status update on people’s wall if they pay and not if they don’t pay.

It has bothered me for quit a while that Facebook dictates who sees my updates, not the user, and certainly not the owner of the status update. So now I may receive sponsored posts on my wall, but I am not seeing posts that may be highly relevant for me. I don’t know about you, but I really don’t like this. Furthermore, I have seen some remarks by Facebook users that Facebook is starting to reduce the number of people that see organic posts even further. Lets say, you have 10,000 fans. Before the arrival of promoted posts, a status update would typically get 100-300 likes. Now a status update will see 4-40 likes. This must mean that the update is not being shown to as many of your fans as it used to be. Coincidence? I don’t believe so.

For all those people, who spent a lot of money to get that many fans, it is a major slap in the face to now have to pay again to show them your updates. I know that it is the risk of investing in a third party site, but still. You have to conclude that investing in sites like Facebook is risky at best. And in my opinion, even more so, after Facebook has gone public. Their focus is shifting more and more to making money to keep investors happy. Unfortunately at the expense of the user.

Another aspect of all of this that saddens me, is that the larger corporations with the deeper pockets are getting the unfair advantage again. With the arrival of social media large corporations and small businesses had equal opportunities to utilize the social media platforms to establish their brand name and build relationships with customers. I am afraid that Facebook is no longer a place where that holds true.

What do you think of this latest development? Are you ok with it, or are you, like me, unhappy about it all? Let us know in the comments how you feel about promoted posts. We always appreciate the input.

To your success,