No - I agree that even while having read Shuen's book and understanding her economic model around user generated value streams - I agree that at least for facebook, they haven't found the model by which they can actually turn that value into cash flow - clearly, at least DaveM has stated - there is value to the members, and there is value in the network - but no business model seems to have emmerged (Can business models simply emerge from a primordial ooze?) Until a viable business model is conceived that can transform the value of the network and generate positive cash flow - it ain't really a business, or at least a viable one - and I think you are right on when you state that it may have been a strategic decision for MS (who can throw money away) to invest purely to block google - that actually makes sense.
On Wed, Sep 24, 2008 at 7:06 AM, Jared Spool <[EMAIL PROTECTED]> wrote: > > On Sep 24, 2008, at 6:47 AM, Will Evans wrote: > > Has anyone else read Amy Shuen's Web 2.0: A Strategy Guide and her >> discussion about Facebook and the the monetization of user generated value >> streams on social networks? For those interested - it does provide a good >> understanding about exactly why MS payed what they did for Facebook. >> > > I think Shuen's work is brilliant. However, all I see with the MS > investment is a Google/Yahoo-acquisition blocker. > > Any attempts that Facebook has made to produce value beyond selling virtual > gifts and poor-response CPM ads has been rebuffed by the users. > > I don't see how the value of the user relationships turns into capital for > the business. > > It's possible I'm just dense about this and everyone else gets it. But to > me, it feels a bit like the house of cards that's been holding up the > mortgage biz for the past 6 years. > > > Jared > > ________________________________________________________________ > Welcome to the Interaction Design Association (IxDA)! > To post to this list ....... [EMAIL PROTECTED] > Unsubscribe ................ http://www.ixda.org/unsubscribe > List Guidelines ............ http://www.ixda.org/guidelines > List Help .................. http://www.ixda.org/help > -- ~ will "Where you innovate, how you innovate, and what you innovate are design problems" --------------------------------------------------------------------------------------------- Will Evans | User Experience Architect tel: +1.617.281.128 | [EMAIL PROTECTED] aim: semanticwill | gtalk: wkevans4 twitter: semanticwill | skype: semanticwill --------------------------------------------------------------------------------------------- ________________________________________________________________ Welcome to the Interaction Design Association (IxDA)! To post to this list ....... [EMAIL PROTECTED] Unsubscribe ................ http://www.ixda.org/unsubscribe List Guidelines ............ http://www.ixda.org/guidelines List Help .................. http://www.ixda.org/help
