Sometimes the first model for even the best business idea doesn’t work as well as planned. Perhaps you intended to sell a subscription service for your online site and then realized only ad-supported content would work with your audience. Maybe you focused on one product only to discover your audience really preferred another. When a business makes such a discovery, it’s time to change course, as Facebook did recently after figuring out it has been chasing the wrong business model. Now the question is, what can other businesses learn from Facebook’s example.
Facing up to model mistakes. No one would dispute the unrivaled success of Facebook when it comes to building the largest online social network on the planet. But when examining the business model Facebook developed to monetize that network, it turns out the company got it wrong. Here is the story of how Facebook discovered re-targeting, and found the real key to its value. Business Insider
The creepiest network around. However, at the very moment business observers decided the social network finally found itself in terms of leveraging its data as a viable business model, some declared that approach…well…creepy. Take the recent revelation that Facebook tracks users’ drug store purchases in order to more effectively target ads. This is no joke! If your customers feel your model is icky, it may mean trouble down the road for your business. The Atlantic
Small Biz Social
Adding to your ad effectiveness. Turning things around a bit, suppose you are the advertiser trying to get attention with Facebook ads. For many small businesses out there, this is the scenario about which you are most concerned. Blogger and entrepreneur Faissal Alhaithami has collected 25 general tips that help you get everything you want and need from Facebook advertising, and then some. Fans Bridge
The cutting edge of EdgeRank. Some bloggers claim EdgeRank, the algorithm Facebook uses to measure engagement on its fan pages, like the one you probably have for your business, may have been altered recently. Though Facebook has offered no official word on a change, Cendrine Marrouat reports on some of the rampant speculation out there about what’s happened and what it means. Like it or not, EdgeRank is one example of how dependent all brands promoting themselves on Facebook have become. Let us know whether the alleged change has affected you. The Examiner
Escaping the social media death trap. While Facebook and other social media sites can be excellent tools for your business for things like networking, marketing, and collecting information, they can also be a tremendous time sink if you don’t use the time you spend on them wisely. Marketer Ti Roberts goes as far as calling Facebook a potential “death trap” when it comes to productivity. Here are her tips to escape unscathed. The Bus Ridin’ Internet Marketer
The client magnet. Social media can serve as an awesome tool for building your business in other ways too. Take LinkedIn, a social networking site more specifically targeted at professionals. If you’re seeking clients for your business, there may be few better places to start your search, and here is one approach that should land you clients repeatedly from this social business driver. Corporation Centre.ca
In search of your online model. While in this post blogger Holly Hanna focuses mainly on home-based business models, which may or may not be online, the point is that the possibilities for business models are almost endless. You may wish to change your business model if your existing venture isn’t working out, or combine business models for a one-two punch that takes advantage of new opportunities. The Work At Home Woman
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