Facebook is a phenomenon no doubt, if it were a country it would be more than three times the size of Nigeria. It has grown in leaps and bounds, it has changed the way we communicate on the internet and most especially it as changed the world!
Mark went through how Facebook growth surpassed his expectation and competition from Twitter and the emerging “location technology”.
Mark, expressed that he was a bit afraid of twitter but so far, he has learnt to watch competitor closely and be able to take right direction.
“I looked at their rate and thought if this continues for 12 months or 18 months, then in a year they’re going to be bigger than us,” Zuckerberg says. But he says he was wrong in thinking Twitter’s growth rate would continue in the same way that Facebook’s had. “It just turned out that that their growth rate was kind of unnatural. They got a lot of media attention, and it grew very quickly for a little period of time,”
On the estimated income for 2010, Mark said $1-1.1 billion estimate is within the range and not as hurting as last year’s estimation.
The reason we corrected it last year is because it was hurting us. People thought it was too low. Now what I would say is that the estimates are not so far off in either direction that it’s causing us any pain, so we feel no need to correct it. Also, if it was too high, we would want to correct it too, because we don’t want expectations to be too high and we don’t want people to be disappointed if they joined. I think people are getting a better feel for it, but in general I think people underestimate the value of the whole thing.
Facebook Credit product is also a step to unify the currency on Facebook, giving people opportunity to take earnings they make from Zynga for instance, to another gaming platform. You talk about a country currency, that is what Facebook is doing now!
“It makes sense that there should be one currency. If I go play a CrowdStar game right now and get Credits there, I can’t go use those Credits in a Zynga game, so that kind of sucks. One of the biggest inefficiencies in buying virtual goods is all the friction of having to take your credit card out, so having one store of [virtual currency] that you can use everywhere is both good for users and good for all the apps.”
The business side of the credit is that, it’s got a batter margin compared to ads. So, you say, Facebook will make more money from this and you are right. I personally think that Facebook will be able to make money from earning made on massively popular gaming products on its platform.
Imaging Facebook grew from 150million early last year to whopping 350million users at the end of 2009, that’s a massive 200million new users! To entrepreneur, you may want to consider, preparing for a massive growth that surpasses your projection.
On whether he likes money;
“I guess we have a pretty utilitarian view towards money. Sometimes what I say gets misinterpreted as I don’t care about money, but that’s really not true. I think building a company is the best way to change the world, because it’s the best way to align the interests of a lot of smart people and a lot of partners to build something that’s great and that serves people. You can’t do that if you’re an individual, because it’s just you and there’s no one to align, and you can’t do it if you’re a non-profit, because you have no resources and you’re constantly out trying to raise money instead of generating it and being self-sufficient. That’s I guess the view.”
I particularly likes this part as it shows the willingness to deliver value other than merely making money. Having read interviews and profiles of great achievers and billionaires, I have discovered that, money was never their first priority to doing what they did, they wanted to serve people and in the long-run, money came along.
My fellow guys, money is important but it’s just a result or reward of value delivered. There are many ways to make money but if you choose to want to be massively rich, focus on value that serves people and right in your bank account, you will see the money on the positive side.
The interview was conducted by InsideFacebook.com; you can read the full interview here.