Facebook Credits a New Standard
>By Christopher Weaver
Facebook is a company with a questionable business model. They make most of their cash by collecting personal information and selling it off to third party advertisers. Lots of people have problems with this, but ultimately it has become the standard for social media and is unavoidable. It seems as though they are trying to make some more legitimate money with Facebook Credits.
Facebook Credits has been in beta and will remain that way until July 1. It is currently used in many games played within Facebook to purchase in game items and upgrades. Developers will no longer have the task of working out payment details, Facebook Credits will take their 30% cut and handle that end. Not a bad deal considering there are over 500 million potential customers. With Apple’s iTunes store charging the same cut, I guess they feel that is the going rate.
The real story here is that Facebook is trying to take over the internet by adding a serious shopping presence. I think their dreams are too big and will eventually be their downfall, but that is my personal prediction. It may seem very appealing for businesses to be able to sell their goods right from their Facebook page. What they may not know is that Facebook will own all of their web content, and that without Facebook they have no web presence at all. Not very good to rely on something you ultimately can’t control or can be pulled out from under you.
I think that this will be great for the in game transactions, but I hope that it remains successful with only that. I really don’t want to give Facebook anymore of my info, so credit card info is out of the question.
Message to Facebook vendors:I hope you have a real website, otherwise I’m not buying.
Managing Editor for allGeek -- Things I enjoy: Bigger screens, video games, and cool gadgets -- an occasional canoeing trip is also nice.