Facebook is behind the 8 ball and unless they can pull a rabbit out of the hat their advertising revenue is sure to take a billion dollar hit.

But I know Facebook has a backup plan. 

In fact, they have been working on this for a while.

Before I let the cat out of the bag, think about this.

Why are Gmail, Facebook, LinkedIn, Instagram, Pinterest, and Clubhouse free?

Why is CBS, NBC, ABC and public TV free?

Why is the local radio station free?

It’s because they are ad supported.

Facebook is not different. 

new Facebook phone
facebook

But here is where things get interesting.

They are borrowing a play from Microsoft from the early 2000’s. 

Microsoft needed to play catch up and build a huge search and subscriber base to catch AOL.

You could switch to Microsoft internet service for 3 years and they would give you a $300 credit to spend in Best Buy the same day you signed up.

This allowed them to leapfrog AOL and put the brakes on their competition. 

Internet Explorer and MSN took off leaving everybody in the dust except Google.

Facebook and a lot of other smart tech companies are about to do the same thing.

They are planning on rolling out a smart phone with Facebook as the default search engine and all the Facebook products preinstalled.

But they are willing to give you the smart phone in exchange for your data.

Samsung and a number of tech giants are working on ad supported smart devices that will tie into the Facebook ecosystem.

The goal is to make these devices free and put the squeeze on Apple and their higher priced products.

It would allow Facebook to bypass Apple and get the user data they need. 

Let’s face the facts. User data is the most valuable resource in the world at this point.

Reply and let me know what your thoughts are.

Talk soon,
Charles