Facebook is a Ponzi Scheme

#Advertising

Tue, Jan 25th, 2011 11:00 by capnasty NEWS

In this opinion piece, Blogger Joseph Perla thinks that Facebook is a Ponzi scheme. By posting huge revenues, Facebook is portrayed as being very profitable. But the reality is that these returns, while real, are unsustainable. Facebook exist and is sustained in the same manner that Ponzi schemes are.

Have you ever bought a Facebook ad? I have. I have talked to many, many people who have. We have spent hundreds, many have spent thousands or even more, experimenting with Facebook ads. They are worthless. Nobody ever looks at them, and nobody ever clicks on them. I just talked to someone who was trying to promote a book. He found it cost him over $100 in ads to sell one book. Moreover, as you increase your ad spending, people get used to the ads and just ignore them. So, your already low click-through rate plummets even further.

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