« Xobni – useful but may have to go | Main | Updating the Open Source Company List »

Facebook – Business as a database?

Unless you live in Los Angeles you probably won't have seen Fred Vogelstein's article "The Facebook revolution" in today's Los Angeles Times.

Fred is a great journalist and always thinks outside the box – the premise of his article is that another way to look at Facebook is as a huge database of interactions between friends, neighbors and colleagues – a digital version of word of mouth information distribution.

Facebook could find some interesting ways of monetizing that database – not only does it have a detailed set of relationship data, it also has a rich transaction stream – every time you add a friend, change your profile, interact with an application… Facebook generates a transaction. Mining both the database and the log of transactions could provide very valuable data.

I've become very interested in business opportunities that monetize information mining – I think this is another way of building revenue for Internet facing companies that offer a substantially free service and build a large user base. Information mining provides an adjunct (or alternative!) to revenue from advertising that could be very useful in getting to profitability.

Comments

The comments to this entry are closed.

My Photo

STU PHILLIPS
MENLO PARK, CALIFORNIA

Intense Brit, lived in Silicon Valley since 1984. Avid pilot, like digital photography, ham radio and a bunch of other stuff. Official Geek.

Proud member of

Venture Capital

a FeedBurner Network


Subscribe to this network

Buy ads in this network

© 2006 - 2009 Stu Phillips

All Rights Reserved.