4. Do you anticipate that Facebook will be successful in developing a business model that monetizes their site traffic? Why or why not?
Facebook did not always have a lasting business model, but now they have one that could be successful. Facebook is following a trend that has been benchmarked by the iPhone and iPod markets by creating applications that complement the base program. When Facebook Platform introduced, it was an effort to open up its site to third-party developers to become a platform for their applications. This is a perfect marriage between developers and Facebook because the developers want exposure for their technology and products, while Facebook has network of over 118 million potential clients of the developers. As a result, the site is more engaging, and more innovative than ever before. In March 2008, Facebook launched new privacy protocols that placed more control of privacy content in the hands of the users. Users control who has access to the site, and what information the visitors will have a chance to view. Their growth has led Microsoft to purchase a stake in the company which increased its value to $15 billion. With all of their good news, it is imperative for Facebook to drive innovative application creation, and vigilantly protect the privacy of their users.