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Twenty-Three Year-Old Facebook Founder worth $5 billion

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In your opinion, will Facebook.com be around in 5 years?

  • Yes

    Votes: 22 64.7%
  • No

    Votes: 12 35.3%

  • Total voters
    34

WheelsRCool

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JScott, thanks for the information. Just wondering, what do you do in Silicon Valley? Are you an engineer? I had been dead-set on moving out there, then decided against it, now I might though, not sure still. I do have dreams of starting a tech company at some point though :)
 
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dhuang

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If you want to start a tech business, Silicon Valley is a great place, for a number of reasons:

- Plenty of funding
- Plenty of great engineers
- Plenty of commercial property geared towards incubation/startup companies
- And just an overall mindset geared towards innovation and tech incubation

And the fact that you'll meet people such as Sergey Brin at your local Starbucks. Naturally, his Prius will be parked outside.

I have a friend who just moved from Oregon to the Bay Area for those very reasons. I too, am trying to launch several web startups as well! :)
 

andviv

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JScott, Rep++, your input has been great in this thread.
I read in this article that he owns 20% of the company:

Founder Mark Zuckerberg, with his reported 20 percent stake, is now a twentysomething paper billionaire several times over.
 

michael515

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Facebook is the real deal. Trust me. Advertisers can reach out to 100s of millions of people via this social networking website. It has a wider reach than any other medium. Think how much advertisers will pay for spots on FB. Zuckerberg is going to keep his billions and more. He's the 21st century Bill Gates. This may sound crazy but, I believe he will be richer than Gates in a few years.

People today spend more time online than watching TV. The internet is bigger than TV. FB is the internets top dog. Worth every penny. You have millions of people who sign into Facebook every single day and spend hours. Imagine how much advertisers will pay to reach these people ? Imagine how many goods and services you can sell via FB. Facebook has it own economy with people being able to buy gifts to post on their friends profile pages. Its crazy. U guys need to join FB and see for yourself.

Peter2, I recommend you sign up on FB and you will see what I mean.

21st Century Bill Gates? That's a big statement there. IMO it's much too soon to compare this guy to Bill Gates. Gates is a great businessman tested over time. How long has Facebook been there?

Don't get me wrong, FB is :thumbsup:and this guy will most likely be richer than almost any entrepreneur at his age, but again, it's too soon to pass judgment to compare him with Gates and put in in the category with elite-class entrepreneurs.
 
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michael515

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You are mistaken here. The Google guys are the next Bill Gates(s).
Microsoft is forced upon user and Facebook is a choice. Could be a here today, gone tomorrow story (with a blink of an eye).

Microsoft wasn't and isn't going anywhere fast because you MUST use the software. This will change as time moves forward but Facebook is not a must. A new Zuckerberg could appear tomorrow and take every one of his users.

Peopel have been trying to do this to Gates for 20 years and it still hasn't worked!
If I was a betting man, The Google guys are the ones that will make Microsoft and Gates look like a mild success, not Facebook.

:iagree: Now Google IS the real deal...
 

dhuang

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It's too soon to pass judgment to compare him with Gates and put in in the category with elite-class entrepreneurs.

Well... they both dropped out of Harvard? :iagree:

I don't know. Personally, I think Gates is a genius. Zuckerberg, with the connectu controversy, etc. It's pretty hard to tell at this point. Gates is quite business savvy, Zuckerberg is a puppet to his investors.

I've been a Facebook user since the beginning of time, and I do miss the exclusiveness of the network. With the open development platform, it's becoming more and more like *gasp* Myspace. :eusa_naughty:
 

imirza

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You are mistaken here. The Google guys are the next Bill Gates(s).
Microsoft is forced upon user and Facebook is a choice. Could be a here today, gone tomorrow story (with a blink of an eye).

Microsoft wasn't and isn't going anywhere fast because you MUST use the software. This will change as time moves forward but Facebook is not a must. A new Zuckerberg could appear tomorrow and take every one of his users.

Peopel have been trying to do this to Gates for 20 years and it still hasn't worked!
If I was a betting man, The Google guys are the ones that will make Microsoft and Gates look like a mild success, not Facebook.

I don't think Facebook is a choice. FB is fast becoming a necessity . Social networking online is huge and will only get bigger. I think Facebook will be the winner.

25 years ago people did not see the PC as a necessity. Today you would be foolish to think otherwise. The same goes with online social networking. A lot of people may not see it as a necessity but 10-15 years down the road will be a different story. Keep in mind a lot of the younger generation will practically grow up on FB. For them, FaceBook will be part of their lives. It will be as necessary as oxygen or drinking water. And as they grow up, they will continue using Facebook into their 40s, 50s, 60s and on. Today I think its hard for most people over 30 to understand Facebook. To fully understand it, you would have to put yourself into the shoes of an 18 year old. The average user spends 2.5 hours per day on Facebook. Thats huge.

I don't think another Zuckerberg will come along and steal Facebook users. It was more like Zuckerberg came along and created a better alternative to Friendster and Myspace.
A whole lot of Facebook users are ex friendster and myspace users. Also on Myspace there was no way to track real users from fake ones. Lots of people came along and created fake profiles or multiple ones. Facebook is a lot more strict on people being 'real' and having only one profile. Thats a big advantage.

I think Zuckerberg is a great businessperson because, he was offered millions of dollars for Facebook over the last few years numerous times but, he patiently held out. He believes so much in his company that he refuses to sell it. Even now, he's only given up a tiny stake. You can tell he has passion for what he does and is not all about cashing in. That make a true businessperson/entrepreneur versus someone who only does it for the money.
 
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WheelsRCool

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JScott, thanks for the info!

The only thing that scares me from California is that it is rated as one of the worst states to start a business in because of ultra-high taxes, so I am considering Nevada, North Carolina, and Texas too.

IMO healthcare, education, communications, and energy will also all be huge industries for growth over the next thirty years. Social networking probably too. I just don't want the next decades to pass me by.

The 1980s passed and people were like, "WHEW! boy did I miss out on getting rich then," then the 1990s passed, and people were like, "HOLY CRAPPOLA! did I miss out on that wealth boom," now there's now, and I don't want to miss out on it!

I hope to become a venture capitalist, philanthropist, and yacht racer in the future :)
 

MJ DeMarco

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I don't think it's worth $5 billion, that would be a LOT of advertising. Probably would have to make more money than all those newspapers put together(just guessing)
I mean who cares about those ads... have you ever clicked a Google Adsense ad? I usually use adblocker and block out those flashy ads anyways.

Many times the value in advertising is not the click, but the impression for branding and customer awareness. Everytime I hit MySpace, I'm inundated with ads for the latest movies and video games -- although I don't click on the ads, the exposure hits my eyeball and I am made aware of the product, like it or not.

An example of this is a movie like SuperBad that caters to a Facebook type crowd. If you want to announce and promote this movie pre-release to a younger set, advertising at Facebook would pay off and would be worth thousands. The impressions, branding, and awareness drives the ad model, not necessarily the clicks.
 

Rawr

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How was Sergey in college?

Facebook is huge, but I can and have lived without it. I can't live without Windows.
 
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Milan

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Well seeing as I'm in college, I can speak on this.

Apple (Mac's) are the new "cool" thing. Nobody cares if you own a PC laptop, but if you own an iBook or a MacBook you become part of the special Mac owning club. Now obviously there is no official club, but Apple is selling an image, as well as a computer. People can hate on Apple as much as they want, but it's not going to change the fact that among America's youth they are dominating the market.

As for Facebook, I can count on one hand the number of people I know who DON'T check theirs AT LEAST 3 times a day.
 

Z5 FILMS

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He's the 21st century Bill Gates. This may sound crazy but, I believe he will be richer than Gates in a few years.

:coco:

Not true at all. Microftsoft almost has a monopoly and sells a "must have" product.

Facebook sells no product that I know of and could easily be a fad. Next year, Shizoobo.com could easily be the next hot new networking site leaving the Facebook user base to dry up and blow away in the wind like an old dog turd.

The Facebooks founders will never hold a candle to Bill Gates. Gate will always be able to buy all of them with loose change in his wallet. As time goes on, it will only get cheaper.
 

Peter2

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As for Facebook, I can count on one hand the number of people I know who DON'T check theirs AT LEAST 3 times a day.

AOL could say the same thing 6 or 7 years ago. :smxB:

These sites are like night clubs. They are only popular for maximum a few years. The only way to make money is to sell while you are still on top, or be worth nothing soon after.
 
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Z5 FILMS

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As for Facebook, I can count on one hand the number of people I know who DON'T check theirs AT LEAST 3 times a day.


Same could be said about Geocites back in 1999. Now you're probably saying "What's Geocities?". In 2014 you will be saying "What's Facebook?".
 

Z5 FILMS

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Same could be said of Yahoo! and Amazon.com back in 1999. Now you're probably saying "What's Yahoo! and Amazon.com?"

Oh wait...

My point is, making a random comparison of FB to Geocities (or Y! or Amazon.com) is meaningless. If you really believe FB won't be around in 10 years, let's hear a well-thought-out analysis of why you believe that.

Do you know something about FB management that leads you to believe they aren't smart enough to keep their business relevant? Do you know something about the business model that leads you to believe it will fail at some point? Do you know something about the customers that indicate that will migrate away at some point?

I know quite a bit about FB (including a number of senior employees), and even I have no idea where they'll be in 10 years (and have yet to hear any convincing arguments one way or another).


I have no proof either way, as nor does anyone else. Just my opinion based on what I have seen and a little common sense. The internet is evolving at a very rapid pace. What's hot one year is old the next year. Sites get bought out, models change, user base grows up, technology changes, fads fade, opinions change.

Social networking sites who sell entertainment that's not a need, and cater to a user base who's tastes and opinions change direction like a hummingbird, I think would be the easiet victims.

Just my opinion.
 

MJ DeMarco

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Broadcast.com was sold by Mark Cuban. The last time I heard about that property was circa 1999.
 
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MJ DeMarco

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Gentleman, I've added a poll to this thread ... "Will Facebook be around in 5 years?"

Please vote and lets gauge the community's opinion!
 

Yankees338

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I'd definitely guess it'd be around in 5 years. It may not be the craze it is today, but I believe it'll still be there. Unless something comes out that truly blows it out of the water, there's little reason to believe it will die off.

Every year, high school and college students graduate and want to keep in touch with those they knew for so long. Facebook provides a very good way to do so. I see no reason why people would stop using it. Just my $0.02.
 

Rawr

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I dunno, Wikipedia isn't a business... Something that chews up money and doesn't have to prove its economic value has a slightly easier job of "making it"

You forgot to add:

Something that helps tens of thousands of students with papers, research and tests (yes, tests ;) )
Something that is immensely useful for discovering new things and expanding horizons. A cool learning thing that isn't considered dorky.
Something that replaced all your encyclopedias.

I agree with you that I don't see how Wiki is making money besides donations - I have nothing against them adding a link or two as long as I get my information fast and easy.



Sergei - I'd figure he was discreet. Probably one of those shy quiet guys working on a master plan when people are out drinking. Good for him.
 
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Milan

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Facebook could pass as a fad, but I honestly think it won't.

I think it will become something like email, everybody is going to have a facebook (or maybe myspace) account just like how everyone has an email account.

You can make the argument about Geocities, AOL, etc. all you want but the fact of the matter is, Facebook and Myspace already have a lot of competition out there, but the two you hear about 24/7 are facebook and myspace, and most people have both, and it seems like virtually everyone (in my social circle as a student) is at least on one of the sites.

Facebook already has a mobile version of their site, and as having the internet on things like your phone and ipod consumes more of the population of the US (especially the youth), I think you will see sites like facebook GAINING popularity.

P.S. Obviously there is an older crowd here (compared to myself), but how many of you on here actually have a facebook account? What about myspace?
 

Rawr

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<snip>
 
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CRBFL

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I started looking into Facebook more after all of this was being discussed so heavily. All I know is that there are some Facebook app developers going seriously Fastlane ($1 mil in a week.)
 
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Rawr

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That's a thing I was wondering about as well. We have all these new apps in Facebook now like "Where you've been" or "Who likes you?" or even "Vampires!" - how are they getting paid?

That whole gift thing is hilarious as well. For those that don't know you can buy a gift for $1 for a person - and the gift changes every day (it is basically a picture that appears on a person's profile once you give it to them). How much money do you make selling pictures!?


And.. honestly, how can anyone else top this

WARNING: You might weep for the future generation (also mildly NSFW)
 

CRBFL

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Just One Way:
There are companies out there that want other people to pimp their software. Think affiliate marketing based on pay per install; they package a tool bar that gets them $1 per install, bundle it with something trendy/attractive/a cause and distribute away. I'll post the extended explanation when I figure out where I saw it, but it works.
 

dhuang

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As a college student and internet marketer, I use Facebook a lot. Considering that they reconstructed their advertising application and launched about an hour ago, goes to show that Facebook is shifting their goals. I'm currently using Facebook Ads, and while buggy, Facebook has been good about ironing out bugs.

However, Facebook has not held on to the creed that they set forth in the beginning. They claim to be a "Technology" company, yet the path they are taking is leading them to MySpace territory.

Soon, Facebook will be launching several other applications that will track user purchasing behavior to be relayed to advertisers. I've been using Facebook before the Minifeed, and let me just say that this will lead to "Stalker-feed" complaints once again.

I do not believe that Facebook application developers are making ANY money. Period. Valuation is far from "Making money." One of the downfalls of developing on Facebook, is that YOU, as a developer, do not own your users. Facebook does.

If Microsoft believes that Facebook is worth $15 Billion, they're not basing it on each user being worth $300, they're basing it on an advertising deal that will last them 4 years.
 
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AndrewG

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That's a thing I was wondering about as well. We have all these new apps in Facebook now like "Where you've been" or "Who likes you?" or even "Vampires!" - how are they getting paid?

Application developers don't get paid by Facebook. But Facebook allows them to place ads on their canvas pages to earn money. But they don't let developers place ads in people's profiles.

Some popular applications like Sticky Notes are making great money. Sticky notes is popular but not one of the top 10 applications and they are still earning $45,000 a month!
 

rico

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Firstly - I'm a huge Facebook fan.

I think people can be a bit too quick to call Zuckerberg the next Gates or Google guys. He's basically a one-hit-wonder. Maybe in the future he'll provide other services and sites, but at the moment, his CV says 'facebook' and thats about it (to my knowledge).

He's been lucky. Afterall, he didn't intend for Facebook to be a worldwide phenomenom, he meant it to be for uni students to keep in touch, originally Harvard I believe, then Ivy League... then expanded from then.

Then lots of people jump on the bandwagon, investors come in, applications are made etc etc and the site grows.

He's basically had a great idea, executed it well, and fair play to the guy, but I think he'll be an interesting guy to watch in the future, but I wouldn't be surprised if he became just another dotcom one-hit-wonder.

Talking of youngsters... Alex Tew (milliondollarhomepage.com) has pretty much disappeared hasn't he? Haven't seen any major news reports of him recently...
 

AndrewG

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I started looking into Facebook more after all of this was being discussed so heavily. All I know is that there are some Facebook app developers going seriously Fastlane ($1 mil in a week.)

Do you know what applications arew earning $1 Million?
 

dhuang

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I've read that article a while back, but completely forgot about it. JScott, you've added more stuff to my stack of reading materials. :)

I believe remembering that revenue generated by viral FB Apps comes from other "Advertisement Applications." Ads will make them money, since Facebook isn't going to be paying them. Just the idea of not being in control of your users, and at the mercy of Facebook, makes building a business on Facebook seem foolish.

I've talked to many application developers who have made some extremely viral apps on the site, and when it comes to their business model... it's always ADS. I asked them if they have made revenue yet..."No," was their response, aside from VC and Angels.

However, that's not the only way to make money. There are other methods such as selling a service, etc.
 

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