Facebook Remodels its Business Model

Ever since the advent of the internet and the consequent growth of eBusiness, business models have been built, re-worked, scrapped and shaken up. Some internet startups began without a viable business model, forgetting that the old rules of bringing in more money than you spend still apply to internet based business.

Amazon is the major example of a company that has shaped and reshaped its business model with considerable success.

Now, Facebook is at it. Using its established Gift Shop, Facebook is expanding the range of goods available in its gift shop to the point of including real world gifts as well as the virtual gifts, like electronic logos and decals, it has handled all along. It has taken to selling its virtual gifts - icons - by having them sponsoered by celebrities, in this case Britney Spears.

Facebook also has its own currency, Facebook Credits, which can be used to buy gifts. The company is also going into the "banking" business, by encouraging the use of its "currency" to buy goods on other sites. It is expected that the new remodelled gift shop will generate an additional half million this year. Not a bad start.

Read more in this report on the new Facebook.