Facebook apps - great for fun but don’t quit your job to start a Facebook app company
The latest rage on the ‘net is the Facebook application - essentially a bit of software which uses Facebook (the social networking site) as it’s sole medium. One cannot simply go to myapplicaitonname.com - no, you can only access it if and only if you have a profile on Facebook and login to the Facebook.com site.
Jason Calacanis explained Facebook’s motives for offering an platform that anyone can access
1. get free developer labor
2. generates tools for their platform and users
3. get free research into which features their users wants
(http://www.calacanis.com/2007/10/09/should-you-trust-facebook-with-your-business/)
Naturally, this has attracted hordes of developers who will generate apps because it’s relatively easy to do and it’s a way to gain “fame” among peers (”hey look, my app has 10,000 users!) Indeed, many of the apps that exist on Facebook have very limited potential for making money and exist as labours of love.
Now, a very select group of developers is basing their entire business (and financial future) off of a Facebook app. While I use Facebook regularly and use it for it’s core features (ie, social networking) it’s not the holy grail of the world. The barrier to entry and exit is pretty low, for all we know, Facebook could lose as many users a day as it is gaining right now. For a while, MySpace was the giant that couldn’t be beat, now look at where it’s standing in comparison to Facebook. Another day, another site could come along (offer an easy “import from Facebookâ€? feature) and dominate market share. Your application wouldn’t work with this new platform and bam, your revenue stream drops dead.
Not only does the “Facebook app” developer face two issues namely being having their fate determined by a third party which may or may not have any loyalty to you, the lowly app developer. One also has the issue of there being too many Facebook applications which can ruin someone’s Facebook experience.
Facebook gained a loyal following for being a lot “cleaner” and “more private” than it’s biggest competition MySpace. With too many apps, Facebook is starting to lose its edge on the “clean and simple” department. It’s not that you have apps on your profile, it’s everyone else. If I want to leave a message on someone’s wall, I really don’t want to scroll through 50 application sections to do so. Chances are I will get fed up with all the clutter and app invites and go somewhere else. Too many Facebook apps diminish the value of Facebook
Facebook should be commended for opening their platform - there are many good applications out there. On a business level however, I wouldn’t dream about basing my entire income on a third party that I don’t control. Facebook apps are great for simple “funâ€? gadgets and promotions (a great extension for a lot of web apps) but is a pretty big risk for someone’s bread and butter.
Facebook is a high risk stock. It’s fine to play around a bit with some high risk “money� – just don’t bet your entire life on it. While you’re thinking about it, stop sending me 5 million Facebook app invites. I really don’t want a cluttered up profile.