Facebook Monetization – Introducing Payment Products
Facebook’s IPO, as we all know, had disappointing results and flushed out expectations of a number of people who were excited about it. It also put a Question Mark on the company’s ability to monetize with the huge user base it has. However, keeping the IPO failure behind, Facebook has recently announced a Subscription and Local Currency Pricing Model for Facebook Application Developers (potentially to add a recurring source of revenue for itself).
These two payments product: Subscription and Local Currency Pricing would be launched in the beginning of July. Below are more details about the two proposed payment products:
1 – Subscriptions:
Subscriptions would help Facebook Application Developers to earn recurring revenues and offer updated content or specials for a monthly fee. Users would pay a monthly fee to access the premium content or experience to Facebook app developer, instead of paying a one-time fee to earn virtual items.
1 – Local Currency Pricing:
We have seen many of the application offering virtual products against Facebook Credits. Facebook has now decided to move away the credits and implement the local currency pricing model.
To increase the number of in-app purchases and to increase the revenues Facebook has decided to take this step. The point that really got our attention for this is that ‘Facebook app developers would be able to set different prices for different markets’. This means that; app developers can generate more revenues and would be able to set high prices for the market which is able to bear it.
Good news for developers is that these models would be applied on all Facebook Applications as well as Mobile web apps. It is a fact that a huge number of Facebook users in the world use Facebook exclusively from mobile devices. These pricing models would help app developers to generate recurring revenues from the mobile customers.
Facebook has taken a huge step by changing the pricing models; also it is a good one for app developers as well as for itself. Facebook monetization model would be stronger after these models are in place and revenue streams would be huge.