Hein (fub) wrote,

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Making money online

Facebook is now "cashflow positive" -- that means they earn more money than their operation costs. Certainly a good thing for any company. The news was heralded as the proof that you still can make money online.

But it takes a whopping 300 million users to do so. That means that only the largest sites with the most users will be able to make money -- the rest will simply burn through the money invested in them and then simply cease to be a factor.
I'm not sure that Facebook's success is proof that their business model 'works'.
Tags: business

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