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May 13 2008   12:19PM GMT

Overheard: Social networking? SHOW ME THE MONEY!

Margaret Rouse Margaret Rouse Profile: Margaret Rouse


Facebook’s real problem isn’t privacy, it’s monetization.

Dave McClure, as quoted in Social-networking sites work to turn users into profits

 In many respects, it is the same query that dogged portal companies in the mid-1990s and search engines in the early ’90s. Some were sold. Some went public. Some went belly up.

The ongoing challenge is to concoct a potion — be it through banner ads, premium subscriptions or licensing agreements — that no one has perfected. Facebook, crown jewel of the field, is valued at $15 billion but barely turns a profit.

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