The Facebook Problem

Just yesterday, the Wall Street Journal had a front page article on the second section about Facebook’s “frenemies”, the basic premise of which was “can’t live with it, can’t live without it.” I was on a panel with Peter Schankman last year and he declared, convincingly, that there was only going to be one victorious online social utility and Facebook had already won (read more here).

I wrote on the Legal Marketing Association Virginias Chapter blog just last month about a couple of issues for law firms using Facebook. Given the information reported by the Wall Street Journal, it’s clear that some of the world’s most respected internet brands and companies are finding the apparent world-domination ethos hard to digest, but difficult to avoid. According to recent statistics from iStrategyLabs, over 70% of the U.S. web audience is on Facebook. Since 2007, their U.S. growth alone has been 600%. While the acceleration in account creation must slow soon, activity in the Facebook community is becoming unavoidable for businesses.

We all must keep a wary eye on Facebook. One good place to do it is the AllFacebook service, “an unofficial Facebook resource.” Each iteration of Facebook is a double edged sword. For example, as Facebook increases its account controls, users will be able to be more circumspect about their data and their “friend” associates. Don’t mistake the intent of these new features: the controls are ways to specify your relationship proximity with members of your audience and Facebook will sell those relationships to whomever wants to buy those eyeballs.

As a proponent of technology and a believer in the basic impartiality of markets, I understand the rise of Facebook. The combination of ease of entry and facile connectedness can be disarming. And I’m no Oliver Stone, I don’t subscribe to conspiracy theories. However, I do believe in corporate amorality. The job of the corporate leader is to ensure the survival and growth of the enterprise. Self-interest is king.

Is there anything about Facebook’s moves to suggest something other than self-interest is at work?