American Business
March 27, 2010 · Filed Under Consider This!
Published by Bob Foster
Consider This!
Facebook, YouTube, MySpace, and Twitter have yet to turn an actual profit…while 21 million individual small businesses—with no employees—contributes $1 Trillion annually to America’s Gross Domestic Product.
No special point here…just an interesting observation.
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5 Responses to “American Business”
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Hmm? It makes me proud to be one of the profitable ones.
Judith Ellis´s last blog ..Being President Barack Obama
That’s insane, isn’t it?
You’d think they could attract enough advertisers, but the services they provide require them to host so much and require the proper supervision.
That stuff is expensive.
Personally, I think their advertising to attract new advertisers suck, which doesn’t help either.
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Judith – In my opinion, it is you and the rest of the “21 million” that are holding America’s economy together…and who will do the most to bring about our eventual recovery. In the words of Tom Peters—
“Entrepreneurial Capitalism is the strongest force possible for unleashing human potential.”
Keep up the good work!
John – I read awhile back that the world’s largest social network is in China, and that it receives only 13% of its revenue from ads…and also is not subsidized by the gov’t. I don’t see why U.S. social networks have to be so ad-clogged. There must be other ways to earn income.
I am also aware that Facebook is EBITDA profitable, and has a positive cash flow. Unfortunately, when you consider things like; interest on their debts, depreciation (for mountains of servers), and amortization (for items such as FriendFeed), they are still miles from being truly “profitable.” The mass hysteria over social networking is so strong that Facebook may even do an IPO, or be acquired, before their NET Profit line becomes positive.
These networks want to keep these things free, and free is rarely profitable.
Perhaps if they created a free version but then the paid versions provide so much more.
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