{{ searchResult.published_at | date:'d MMMM yyyy' }}

Loading ...
Loading ...

Enter a search term such as “mobile analytics” or browse our content using the filters above.

No_results

That’s not only a poor Scrabble score but we also couldn’t find any results matching “”.
Check your spelling or try broadening your search.

Logo_distressed

Sorry about this, there is a problem with our search at the moment.
Please try again later.

As Facebook's unbelievable growth continues unabated, the company is increasingly finding itself scrutinized by critics who are asking a simple question: 'where's the money'?

Even though Facebook is generating hundreds of millions of dollars in revenue, its costs are growing rapidly and there are various unsubstantiated rumors that the company is on a potentially disastrous financial path.

Facebook's primary business model, advertising, has been a mixed bag. Facebook ads have gained a reputation for less-than-satisfactory performance and its efforts to create more innovative and effective social ad platforms have been dented by user backlash.

Advertising, however, isn't Facebook's only revenue stream. It has a multi-million dollar virtual gifts business, for instance, and it's hard not to see the potential goldmine Facebook is sitting on.

Now, the AllFacebook blog is reporting that Facebook is exploring the development of a new revenue stream: vanity URLs. Currently, profiles are located at non-descriptive URLs that Facebook assigns. Some celebrities, however, have been granted vanity URLS (eg. www.facebook.com/patricio) and AllFacebook reveals that Facebook has apparently been conducting polls asking users about their interest in the possibility of being able to pay for vanity URLs of their own.

As AllFacebook notes, this could easily be a multi-million dollar business for Facebook and conceivably there's millions more to be had by auctioning off generic vanity URLs that would appeal to businesses, like www.facebook.com/shoes.

So is this a viable revenue generator and could it be a breakthrough for Facebook on the financial front?

I have mixed feelings. While there's definitely money here and there could be quite a bit of value for vanity URL buyers (SEO anyone?), it's hard to swallow the possibility that Facebook would build a 200m plus member social network only to monetize it by charging for vanity URLs. I don't think it's going to be Facebook's AdWords so to speak, and even though I'm sure lots would pay, it's worth pointing out that most other social networking services, like MySpace and Twitter, give away vanity URLs.

Creating a two-class system where those who are willing to pay get to 'create' their identity through a vanity URL and those who aren't get stuck with a poor man's URL might upset more users than we'd initially suspect. In my opinion, business models built around user expression need to be carefully crafted. Virtual gifts? Charge away if they're an add-on to the core user experience. But when you start charging for the basics (vanity URLs, profile customizations) you run the risk of nickel-and-diming your users for functionality that they've come to expect as standard (and free) elsewhere. There has to be some compelling value.

From a business perspective, it's hard to tell whether Facebook's potential interest in charging for vanity URLs is part of a smarter strategy (build up lots of low hanging fruit revenue streams) or whether it's a sign of desperation (find revenue wherever we can).

Time will tell.

Photo credit: jaycameron via Flickr.

Patricio Robles

Published 23 April, 2009 by Patricio Robles

Patricio Robles is a tech reporter at Econsultancy. Follow him on Twitter.

2393 more posts from this author

Comments (4)

Avatar-blank-50x50

Jamie Riddell

From a personal perspective, no. It should actually be standard as you can have brand urls on Twitter (if you are quick enough) Plaxo, Linkedin etc. However, if there is a revenue stream from it (that works for both FB and brands) then sure.

over 7 years ago

Avatar-blank-50x50

Luke Regan, Head of SEO & Social Media at Make It Rain LtdSmall Business Multi-user

I can see them charging for the generic rather than brand vanity URLs, offering sponsorship of a particular section, e.g. facebook.com/snowboarding .

In terms of ad performance, I don't think there's anything wrong with the platform, rather the campaign setup and optimisation, works a treat for us. The important thing to remember is that you're not 'booking media' but trying to be engaging and target segments that are relevant to your business with something that is genuinely compelling.

over 7 years ago

Avatar-blank-50x50

Applied Visions

I see Facebook as a big new experiment with open end till now. It is amazing how much people are willing to give from their privacy. Also will it be very interesting how they manage to earn money. I am looking forward with much anticipations.

over 7 years ago

Avatar-blank-50x50

Facebook Developer

It’s going to be a big moment, and many marketer’s will abuse the privilege of having a username. I really hope i can get the one i want.

over 6 years ago

Comment
No-profile-pic
Save or Cancel
Daily_pulse_signup_wide

Enjoying this article?

Get more just like this, delivered to your inbox.

Keep up to date with the latest analysis, inspiration and learning from the Econsultancy blog with our free Daily Pulse newsletter. Each weekday, you ll receive a hand-picked digest of the latest and greatest articles, as well as snippets of new market data, best practice guides and trends research.