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Facebook lost 40 percent of their value since its Initial Public Offering on the stock market in May this year.  For years, Facebook resisted buyouts and floating the company on the markets, but went public once it crossed the threshold of 500 shareholders. Unsurprisingly the company is under pressure from the markets to make some money and Facebook will begin to charge businesses to use the site.

Facebook lost 40 percent of their value since its Initial Public Offering on the stock market in May this year.  For years, Facebook resisted buyouts and floating the company on the markets, but went public once it crossed the threshold of 500 shareholders. Unsurprisingly the company is under pressure from the markets to make some money and Facebook will begin to charge businesses to use the site. It seems Facebook Offers, initially a free service, will begin to charge companies for using the service, according to Reuters “in coming weeks Facebook will require merchants to pay at least $5 of related ads to promote each Facebook Offer to a targeted audience of fans and friends of fans.  The cost will vary based on the size of a company’s Facebook pages.” The question is - will businesses like Facebook’s new idea? As, excluding paid advertising, they have been able to use the social network to promote their products and services for free. "We think this aligns incentives nicely," said Gokul Rajaram, director of product management for Facebook's advertising and Pages businesses. "The best results on Facebook Offers will come from organic distribution plus paid distribution." "The requirement to pay for related ads will focus merchants on who and where they want the offer to reach." Another change to the service includes a barcode which customers can save or print in order to redeem offers. This service will be available to online-only stores, as previously you had to have a physical location. Another issue to consider regarding Facebook becoming profitable is the massive increase mobile and tablet use, how can they make the advertising work on smaller screen? According to Bloomberg, Facebook are already testing a Mobile Ad service. Here is how they might crack this problem, by checking what apps you use… I’m not sure how keen people are going to be on this given the existing privacy concerns, can Facebook really make money like this or will they just annoy and alienate their users?