Did you read about the 3 Ways Facebook is Planning to Exploit You?

3 Ways Facebook is Planning to Exploit You

D id you know that Facebook is going public? What is it going to happen?

On February 1^st, Facebook filed an S-1 form with the Securities and Exchange Commission as the first move to start an IPO (initial public offering). But if you want to purchase some shares, you still have to wait another three months or so.

Did you know that Facebook IS profiting from your ‘free account’? Here is how.

Matt Nesto, program co-host from Breakout show, talks about how Facebook will ‘exploit’ the user. Yes, you! Facebook will do this to increase their revenues…. As if they didn’t have enough.

Watch this video below and you will see what I mean.

I read an interesting article by Jeff Macke, from Breakout, in which it mentioned 3 Ways Facebook will Exploit you. Here is a recap and my thoughts about it.

1. Users will be sold at $120 each. Yes. You will be sold at $120.

As you may know, Facebook’s users have reached the 850 monthly active users by the end of year 2011 and generated around $3.7 billion in revenue which like Matt says, it comes up to around $4.50 per member.

How does Facebook sells you?

Facebook sells your information to advertisers. Remember than every time you click on a Like link for anything, you are expressing what you like. Besides that, all that information you entered when you created your Facebook account are just contributing to the Demographics. This is valuable information to advertisers as they can design their campaigns to target selected groups of people. How valuable is that!

I am glad I don’t include any personal information in my Facebook profile. Although they still gather information about what I ‘Like’, meaning more ads will popup targeted to me whenever I click on a picture, and the Sponsored ads that appears on there. And they also have the ‘required’ information to register to Facebook, including your Cell phones when you set Facebook to send messages to your Phone app.

But sad part is that Facebook may sell you for $120 and you get nothing! You help them form marketing statistics and you won’t get paid for it.

2.  Mark Zuckerberg, Facebook founder said: “Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected.”

Let me tell you, I don’t care what his intensions were originally. The fact is that he changed. Like it’s not enough the $30 billion he is worth right now!

So, be careful with what you ‘Like’ from now on because that information will be sold. I see people every time Linking everything that comes in front of them without giving it a thought. Now, if you use Facebook for business, meaning that you have a profile to meet more people and build relationships, you should be selective to what you click the Like button. These ‘Likes’ will be sold!

This is what’s going to happen: You receive a “Friend” request form someone you don’t really know. Based on your preferences and history in Facebook, that new ‘friend’ will be pitched with advertising related to what YOU like. So be selective with whom you are friending.  It will be like an unstoppable virus!

3.  Being Public means Shareholders are decision makers, but not in this case.

Normally, when a company sells shares/stocks, those shareholders are actually purchasing a piece of the pie and every decision is made based on the votes form the majority.

But in this case, Zuckerberg is retaining total control, even on any votes by shareholders. So it won’t matter what shareholders vote on, Zuckerberg will have the last say. I am not sure if I would want to invest on shares I will have no actual vote.

So, don’t be fooled thinking how a good guy Zuckerberg is. He just wants more money as if what he has is not enough. That innocent guy that once created Facebook to build friendship and relationships doesn’t exist. He is now just another business guy looking out for more ways to keep building his empire… and you are helping on that without earning a penny. But, despite all of this, let’s face it…. we are all addicted to Facebook!

Leave your comments below!! I want to know what you think about this new IPO.

Janet Garcia, President of Unlimited Concepts – Uconcept.com – She is a Graphics Artist, Web Media Producer, a Certified Video Specialist as well as a Social Marketing Administrator and Consultant. Janet has been in business since 1994 and has worked throughout the years helping businesses and individuals to brand themselves and develop their online presence taking their business to the next level: Success!

“3 Ways Facebook is Planning to Exploit You”