Will Facebook Shut Down PaidStatus?

Paid Status IconPaidStatus is a new service that lets advertisers buy people’s status updates for advertising purposes, but while this could be a marketer’s paradise, it violates Facebook’s terms. For a relatively small fee, users will post advertisers’ message on their status update, probably confusing a lot of friends but generating a nice income stream for the user. The biggest question at hand is: will Facebook shut this down?

Users get a fee ranging from “$10 to $1000”, and the eligible users need to have a minimum of 500 friends (the average number of friends on Facebook is 130). If users have fan pages, they can use that as well to advertise using the page’s status update, as long as the page has 2000 fans. A group can advertise as well, with a minimum of 1000 subscribers.

The problem here is that this is something that Facebook is likely will shut down due to its nature of ‘spamming’ the network. One of the reasons Facebook shuts down false profiles is because they fill the network with random, spammy content, and this product is no different. In a recently published book, Facebook Fairytales, Mark Zuckerberg states in the foreword that he wants the network to be real and have authentic users: he feels it is what separates Facebook from other networks.

Time will tell whether Facebook pushes this model out of Facebook. It certainly has worked for Twitter, as companies like Ad.Ly pay Kim Kardashian $10,000 per sponsored tweet, and more spam-like companies are popping up. Some are even trying to get users to pay to become the mayor of locations on Foursquare.