Why Facebook will never change its business model
Following Mark Zuckerberg’s Congressional testimony in March, Len Sherman wrote: Other companies can only dream of running a company with essentially: No cost of goods sold (individual users and companies provide content for free) No marketing costs (user word-of-mouth and viral network effects spur continuous growth) No selling costs (most advertisements are purchased through a self-service, automated ad placement platform) If you were in charge of such a money-making machine, would you be eager to change this business model? But…