Facebook's Lost Opportunity Cost

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By Nick O'Neill Comments

Another fishy report came out of the U.K. today stating that Facebook is costing the U.K. firms over $260 million a day. The report was published by an employment law firm. While I don’t consider this report to be completely accurate, the bottom line is that Facebook has a significant opportunity cost deficit. All the money being spent via time on Facebook should be more effectively monetized.

As of now Facebook is breaking even and may be looking for yet another round of funding. With all the hype surrounding them currently, I’m confident that they will have absolutely no problem trying to find more investors. Even with the launch of the platform they are going to have to start launching new services that monetize their site. There is available money for Facebook that is currently being thrown out the window.

While Facebook has a lot of buzz surrounding them, they still have a long way to go in terms of generating revenue. Their future payment system integration, analytics offering and advertising system will help to monetize their site more effectively. While Facebook is preparing to launch a suite of services, they may want to start rolling out new features soon because they are missing out on a nice chunk of money.