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Groupon is definitely worse than Facebook, but still, http://www.jperla.com/blog/post/facebook-is-a-ponzi-scheme http://www.jperla.com/blog/post/facebook-is-a-p
by ljlolel 15y ago
Groupon is definitely worse than Facebook, but still,
http://www.jperla.com/blog/post/facebook-is-a-ponzi-scheme http://www.jperla.com/blog/post/facebook-is-a-ponzi-scheme
- mikeash 15y agoSeems like any financial structure that isn't indefinitely sustainable gets described as a "Ponzi scheme" these days. What that post describes isn't a Ponzi scheme at all. The defining characteristic of such a thing is using the money from new investors to pay returns to old investors, thus making the investment appear legitimate. It's completely unrelated to Facebook advertising. Maybe their business model is unsustainable, but its nothing like a Ponzi scheme.
- fennecfoxen 15y agoI'm not even sure that their business model is unsustainable. The growth that would be necessary to justify their current valuation is probably unsustainable, mind you. But there's easily a good little business there. It just happens to not be worth 7 billion dollars :)
- mikeash 15y agoSame here. I was really skeptical of the claim that Facebook advertising isn't worth the money. I think it's far more likely that it is worth the money if you sell the right sort of thing, and this guy just moved in circles where people didn't sell things that advertised well on Facebook. However, the "Ponzi" thing stuck out at me much harder.