Amazon has an obvious business model; the case for grabbing as much of the market as they can makes much more sense for them. Facebook on the other hand doesn't. Who cares how many users you get if no one knows how to monetize them?
I understand they're hoping by the time they get all the market wrapped up that they'll figure something out; that doesn't make it any less stupid. There was a time VC's wouldn't talk to people without an exit strategy up front, this was for a damn good reason.
Facebook isn't the first social network, and it won't be the last, social networks are faddish. Fads fade.
Amazon's model wasn't obvious when they started. Would people choose to trust and prefer online ordering? Wait for delivery? Would prices plus delivery costs be competitive? Even Bezos probably had no idea how much they'd make by being a clearinghouse (and sometimes fulfillment-house) for others' sales.
Can you make money from mass audiences online? Yes; absolutely.
I have no reason to doubt (Facebook board member) Marc Andreesen's assessment, offered a few weeks ago on the Charlie Rose show, that Facebook could choose to be profitable at any time just by adopting more aggressive, typical web advertising. That they choose instead both user growth and a search for all-new advertising models is to their credit. Andreesen, the Facebook founders and executives, and their investors are not 'stupid' and just 'hoping' to 'figure something out'.
I understand they're hoping by the time they get all the market wrapped up that they'll figure something out; that doesn't make it any less stupid. There was a time VC's wouldn't talk to people without an exit strategy up front, this was for a damn good reason.
Facebook isn't the first social network, and it won't be the last, social networks are faddish. Fads fade.