Monday night I was climbing into bed fairly early and thinking about all of the posts and articles about Facebook and their need to drive revenue now that they are a publicly traded company. My thought process also veared to the recent firestorm and frustration surrounding Facebook’s ever-changing EdgeRank algorithm that is increasingly limiting personal and page content reach. As I continued to ponder these two connected issues I began to formulate an idea that I believe to be an effective solution to both.
An article I shared Monday from Computerworld outlines some of the changes social media is experiencing with the “pay” requirement that is creeping into the space and the frustrations that could damage the industry. Their article “Here comes the shameless social money grab” outlines why charging for social networking sites is wrong. Though not comprehensive, it does detail the huge potential backlash starting in the industry. This article was the catalyst that got me thinking on a solution.
Mark Zuckerberg, this is for you buddy. If only you would listen…
My three point Facebook plan involves core changes to EdgeRank implementation, how pages are monetized, as well as new search capabilities within Facebook. These changes are designed to improve user experience, reduce frustration, expand page capabilities and reach, as well as provide Facebook with substantial and sustainable revenue streams. Let’s jump in and review my suggested plan.
Part 1: Facebook Pages – According to Inside Facebok, there are approximately 42 million active pages on Facebook at this point. Given this valuable business use of Facebook’s network, I propose making pages a paid medium for brands at three levels. $3/mo for small, $10/mo for medium and $20/mo for large pages, depending on number of likes.
Pages represent the biggest opportunity for Facebook to enhance value to both business and consumer users of their platform and derive revenue from doing so. My proposed nominal fees for fanpages should also coincide with the removal of EdgeRank placement for these pages in users newsfeeds that have liked the page. Pages that do not subscribe to the paid platform keep EdgeRank in place, resulting in extremely limited reach to their audience.
There are numerous benefits to this aspect of my plan, but I will highlight just a few:
1) Reduction of useless and inactive pages on Facebook’s network
2) Enhanced REAL value to page owners
3) Likers get the content