jan JanRain Engage Offers Social Publishing For The iPhoneOpenID software creator JanRain is launching a new iPhone SDK today, called JanRain Engage, which allows an app developer’s visitors to sign-in to the app with their existing accounts on Facebook, Google, Twitter, Yahoo, LinkedIn or other networks and then publish their comments, purchases, reviews or other activities from the app to multiple social networks.

The social networking product, which is available through an SDK, allows developers to choose from a list of up to 12 login providers and specify the order in which they appear via the Janrain Engage dashboard. Janrain Engage will also remembers an app user’s preferred network on return visits and will provide a single-click return experience. And Janrain Engage allows a developer’s iPhone application to authenticate users through iPhone’s native UI.

For app developers, the benefits of integrating a comprehensive social network login product helps create between 6 to 25 new referral visits for each social action a user shares with friends. JanRain also offers an OpenID iPhone technology, which launched earlier this year. The company raised $3.25 million in Series A funding last year.

Information provided by CrunchBase

 JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone

 JanRain Engage Offers Social Publishing For The iPhone
 JanRain Engage Offers Social Publishing For The iPhone

 JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone  JanRain Engage Offers Social Publishing For The iPhone

 JanRain Engage Offers Social Publishing For The iPhone

awesome Facebook’s “Like” Button Used To Be The “Awesome” Button

“The concept of “liking” things is very old, likely older than the words we use to describe it…”

– Facebook Engineer Andrew Bosworth

We can’t get enough of Quora these days, basically because it connects people who have information to people who need it, and especially to those that didn’t think they needed it. One of the things you thought you didn’t need to know? That the Facebook “Like” button started out its life as the “Awesome” button.

In an epic Quora thread, Facebook Engineer Andrew Bosworth delineates the history of the “Awesome”/”Like” button, what eventually turned out to be a way to connect Facebook users with the entire Internet — with the added bonus of rerouting all activity through the Facebook platform.

Other than the whole “Awesome” thing, which Mark Zuckerberg ended up vetoing in favor of the more bland “Like,” other ideas that got tossed aside in the design process were stars and a plus/minus sign.

Attempting to dispell the commentary that Facebook copied Friendfeed’s “Like” feature, Bosworth’s timeline pinpoints the word “Like” being proposed internally to a less than enthusiastic response on on August 22, 2007, in contrast with the Friendfeed’s official launch of their “Like” button on October 30, 2007.

According to the timeline, Facebook was ready to to launch the button by November 12th but Zuckerberg put a kibosh on the plan:

“Final review with Zuck surprisingly doesn’t go well. Concerns about the whether the interaction is public or private, cannibalizing from the share feature, and potential conflict with Beacon. Feature development as originally envisioned basically stops.

So Friendfeed gets its out first, and it takes Facebook another two years to push its universal “I enjoy this” button out the door launching it on their own platform in February 2008 and then expanding it to all websites in April 2010. Bosworth adds regarding the Friendfeed button launch, tongue in cheek, “As far as I can tell from my email archives, nobody at FB noticed. =/.”

Going by Bosworth’s retelling, it seems like Facebook came up with the concept first but never actually went through with an “Awesome” button, until after Friendfeed launched theirs as the “Like” button. While Facebook engineer Tom Winah states, “the launch of Like on FriendFeed wasn’t on our radar at all, “ in some sense Friendfeed basically did Facebook’s “Like” button quality assurance for two years.

And despite initial lukewarm “Like” response, Facebook ended up going with the same name; “We were all stubbornly insistent that no word could be more awesome than “Awesome” and Zuck was the main person to recognize it wasn’t a good choice,” confirms Facebook engineer Tom Whitnah.

To everyone involved’s credit, people have been both liking and thinking things were awesome since the origin of the species.

 Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button

 Facebook’s “Like” Button Used To Be The “Awesome” Button
 Facebook’s “Like” Button Used To Be The “Awesome” Button

 Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button  Facebook’s “Like” Button Used To Be The “Awesome” Button

 Facebook’s “Like” Button Used To Be The “Awesome” Button

 If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...There were two surreal moments for me at Disrupt last week. The first was during the SV Angels Party when Hammer was dancing. It wasn’t just because MC-Freaking-Hammer was doing to Hammer dance in a tux and nerd glasses in front of me. It was because the CEO and founder of the media company I work for were on stage looking awkward and white, but dancing none the less. It was because I’ve hung out with Hammer at parties and conferences like the Lobby– two unlikely people sucked in to the Web 2.0 vortex. It was because I ran into the founders of Digg, separately and in different rooms at the party. They were like brothers the first time I met them, and now– no matter what they politely say on stage– they were estranged, with one ousted and the other trying to turn the once-hot company that helped start the Web 2.0 wave around. It was a feeling that something was ending.

The feeling was echoed the next day watching Kevin Rose and Michael Arrington on stage. For my corner of the Web 2.0 world these were two of the most seminal figures. I put Rose on the cover of BusinessWeek at the beginning of the wave, an article that got me a book deal that ensured I’d spend the next year surrounded by people like Max Levchin, Peter Thiel, Mark Zuckerberg and others. And Arrington was the only other reporter I knew back then who wasn’t a total cynic about Web 2.0 companies’ chances. Eventually I’d find we were so like-minded that I wanted to work with Mike– finally leaving my old-media roots behind. One word has summed both of these guys for a while now: Tired.

The first wave of Web companies never got here, most grew so fast they went public or raised an unsustainable amount of money, hiring an unsustainable amount of employees and when the spigot of free capital was gone they had no choice but to implode. But that didn’t happen in Web 2.0– precisely because it had happened so recently in the late 1990s. People like Kevin and Mike were cautious. They ran their businesses at break even, raised money cautiously, and outsourced business processes– like ad sales and even some underlying technology– that weren’t core to the business. For all the talk about a second Web bubble, most of the companies on covers of magazines were pretty conservatively run. As a result they had plenty of money in the bank when the recession hit. Sure there were employees cut here or there, but most of that was to get rid of people who were underperforming or make a show of belt tightening for investors.

But it was still a wave, an unsustainable ride of hope, big dreams, a feeling of invincibility that had to crash– and for me, mostly ended last week when TechCrunch was sold. But the recession didn’t crash this one– exhaustion did. Building media companies– which is what most Web 2.0 businesses are– is a grind. You can’t build a huge business with less than 20 million monthly uniques and getting there is a brutal day-in, day-out grind of producing great work, making the site as intuitive as possible and continually finding reasons to remind people you are worth 5 minutes of their day everyday. This is the part of the story we don’t tell enough on TechCrunch. We make startups sound easier and more glamorous than they are. Everyone in the game knows that–but we probably do a disservice to people who think all they need is a Super Angel and in two years they’ll get a deal from Google.

On stage Mike asked Kevin what the most amount of money he’d walked away from was and he said $80 million. Mike asked if Kevin regretted not taking it, and he didn’t really answer the question. It was clear from his body language that at least part of him did. In that moment, they looked like two men both slightly jealous of each other– one because the other said yes and one because the other said no.

In any Silicon Valley wave there are the clear huge winners– Facebook and likely Twitter and Zynga. There are a few clear huge businesses, and I’d argue LinkedIn is in that category. And loads of companies that are clever-but-doomed. And then there are a bunch where we just don’t know. They are clearly worth something, in the case of Slide or TechCrunch and, hopefully, Digg they’re worth enough that the founders who worked so hard for so long make a life-changing amount of money. But in some ways, when these founders finally succumb to the grind, it’s almost sadder for those of us who were along on the journey– whether investors, employees, friends or just users of their sites.

I remember the day when the Industry Standard– the magazine that chronicled the 1990s bubble and held weekly rooftop parties– went out of business. I covered the news for the tiny weekly business journal I wrote for back then, and drove up to San Francisco as employees were forlornly cleaning out their offices– all of them. It reminded me of the last day at college, when everyone takes every scrap of their life out of a dormroom never to return. I did an interview with the Editor that made me feel like an ambulance chaser. His dream was in shambles all around him and his staff of hundreds were out of jobs. Media people are impossible at faking how they feel. I couldn’t do it when TechCrunch announced it was selling, and this guy couldn’t do it now. One of his star writers told me it was like that scene in Goodfellas where the crew feels on top of the world like they own a town– and then they get sloppy and everything goes to hell.

Back at the Hammer party, it was my Goodfellas moment, albeit a far less dramatic one. I didn’t have an office to pack up and we all still have jobs, but I couldn’t help feeling like it was all over. Not TechCrunch or Digg or Facebook or the other companies we associate with the wave, but the wave itself. It has crashed on a beach of exhaustion, and people who said they’d never sell for less than $1 billion doing just that. More of it is coming.

TechCrunch has been unlike any other media organization for which I’ve worked– whether newsweekly, magazine, television, or big media portal. We could all leave in three years and start another one but it won’t be the same, Web companies are organic things shaped by a million little small decisions and dozens of people who pass through that companies life every day. There’s a magic that catches or doesn’t. Business professors and journalists can later dissect what companies did right, but frequently at the time pivotal decisions were a fluke.

There’s an endless debate about the good and bad of selling a company that’s still growing in the Valley right now. There’s the obvious macro-economic answer: Everyone selling too early is bad, because no new tech giants are created. There’s the obvious micro-answer: A few million dollars is life changing for most people, and those entrepreneurs deserve to make a life-changing amount of money. In a lot of ways, Disrupt was in the middle of that debate all week. The same Michael Arrington who called out investors who just fund “dipshit $40 million companies” sold his company for a reportedly similar figure the next day. Like most people, I find both arguments compelling. But the important thing to know is this: You can do it again, but you will never create the same company twice.

At that Hammer party I ran into a friend who has built several successful companies– and always refused to sell at their headiest point. He asked me what I thought of the AOL deal. I asked what he thought. He laughed and said, “You’re talking to someone who has managed to evade seven successful exits, don’t ask me.” Yeah. That sums up the end of the Web 2.0 era angst.

 If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...

 If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...
 If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...

 If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...  If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...

 If Web 1.0’s Kryptonite Was the Bust, Web 2.0 Kryptonite Was the...

pacbook How Facebook Can Become Bigger In Five Years Than Google Is Today

Remember three years ago, when Microsoft paid a quarter-billion dollars for 1.6% of Facebook and the exclusive right to run banner ads across Facebook.com? Tell the truth, how many of you thought that was a killer business decision? I can’t say I did at the time. But as that deal is about to expire in 2011, Facebook’s status as a revenue juggernaut is rarely questioned any more.

In fact, I have been mulling over data from both companies, and I’m ready to declare in public my belief that Facebook will be bigger in five years than Google is right now, barring some drastic action or accident. Futhermore, Facebook will grow without needing to cut into Google’s core business of text ads, which are still 99% of Google’s profits. Even if every single Facebook user performs just as many searches with Google as ever—including Google Instant, mobile search, and YouTube—Facebook will inexorably grow as big as Google is today and maybe bigger, because Madison Avenue’s brands are less interested in targeting than they are in broadcasting to vast mother-loving buckets of demographically correct eyeballs, and Facebook has become the perfect platform for that.

What do I mean by bigger? Facebook already has more page views than Google. People already spend more time spent on Facebook than Google. I’m referring to the life blood of any business: revenues.

Google’s 2010 revenues will be $28 billion, give or take a billion. The goal of this writeup is to illustrate the ways that Facebook’s annual revenues could grow from $2 billion to more than $30 billion in five years a diverse set of revenue streams that have one thing in common: people. Facebook’s future revenue streams, like their applications, are naturally social, and engage consumers with social intent, not just a widget or “social layer.” We repeat: social is not a layer you add; it is core to monetization.

zuckertini How Facebook Can Become Bigger In Five Years Than Google Is Today

Facebook has figured out its business model, and wants to keep it out of the public eye as long as possible. Facebook’s alleged revenue has grown from $275 million in 2008 to $635 million in 2009 to a rumored $2
billion
this year, which is much higher than the also-impressive $1.2 billion number circulating earlier this year. Let’s pause and reflect for a moment. Facebook is allegedly already earning double the
revenues
Google reported when it filed to go public.

When we do the archaeological dig of Google’s actual revenues during its private years, we discover similar pattern to Facebook’s: $86 million in 2001, $440 million in 2002, and $1.4 billion in 2003 . . . and so on. Note, however, this divergence:  Google Web Sites earned more than twice the revenue in 2009 as the gross evenue brought in through Google Network Web Sites, even though in 2004 they were roughly the same. The value of properties Google owns has been much greater and faster growing than all of the external Web sites with whom Google shares revenue. This will almost certainly be even more true of Facebook, given the private nature of much of its content. For many consumers, Facebook is the Web.

Facebook’s second-mover advantage affords the company the luxury of offering both types of Internet money-making product: Advertising and Commerce.  As a result, instead of an open Web-like ecosystem, Facebook could choose to partner with a few friends—MicrosoftAmazonZynga, perhaps even Apple—and also lock out Google and anyone else, big or small, who Facebook deems not a friend, to best serve its revenue goals.

So, how does Facebook ride Advertising and Commerce into a future of more revenues than Google? By creating a virtuous cycle of cross-promotion: targeted lead-generations and subsequent transactions feed into the next series of even-better-targeted lead-generations and subsequent transactions, naturally.

Facebook Advertising does not directly compete with the text advertisements of Google’s AdWords and AdSense. Instead Facebook is siphoning from Madison Avenue TV ad spend dollars. Television advertising represented $60 billion in 2009, or roughly one out of every two dollars spent on advertising in the U.S.; the main challenge marketers have with the Internet till recently has been that there aren’t too many places where they can reach almost everybody with one single ad spend. Facebook fixes that problem. Specifically, Sheryl Sandberg went on record in August saying that some brands have increased their spending twentyfold in the past year:

Two years ago the big brands were experimenting with us.  They started buying with us a year ago. Now, they’re going big.

She took this observation even further in a recent BusinessWeek article, “Facebook Sells Your Friends“:

Davide Grasso, Nike’s chief marketing officer, says Facebook “is the equivalent for us to what TV was for marketers back in the 1960s. It’s an integral part of what we do now.”

In 2008 [Sheryl Sandberg] left Google for the experience of running a startup—and because she believed Facebook was the better bet to win in brand advertising, which accounts for 90 percent of the $600 billion ad market. “We are in a much bigger market than Google, and we have much, much more runway,” says Sandberg.

She’s not the only one who believes how huge this market opportunity is. Just in the last week, TechCrunc quoted Paul Buchheit in his belief that people are significantly undervaluing Facebook compared with Google, and interviewed Peter Thiel about his conviction that Facebook is undervalued at $30 billion. Of course, these are all self-interested insiders.  I scratched my head at this week’s declarations of undervaluation, until I took the perspective of Mad Men.

Facebook Ads employ demographic characteristics (Age/ Sex / Location and Interests), which corporate brand managers and television ad buyers have been accustomed to purchasing for half a century. By contrast, Google AdWords target on the intent revealed by search queries, a practice that has seemed odd and new to Madison Avenue for the past decade and frankly has many of them worried for their jobs.

But it’s not just Madison Avenue. I keep thinking about putting BusinessWeek’s $600 billion ad market in context; Google seems to be having as hard a time getting into brand advertising as Microsoft had getting into search. By contrast, Facebook is making this look easy. Yahoo just paid $1 per like, and buying fans is only going to get more expensive as the lifetime value of a “fan” is better understood.

Five years from now, could enough brand managers and television ad buyers be so impressed with their returns from Facebook campaigns that they collectively increase their spending on Facebook fivefold to $10 billion annually? Heck yes, even if that entire budget comes out of the current $60+ billion annual TV ad budget (and remember, that is just in the U.S.).  Especially if the entire budget comes out of that, because Facebook is more targeted, has better analytics, and engages its audience directly and interactively through conversations—aka chat and photos.

Plus, Facebook is getting stronger at developing products for advertisers, and once they set their mind on adding algorithmic search and/or an AdWords or AdSense competitor, I’m sure some of the over 100 ex-Google engineers who are now at Facebook will volunteer for the job. Could that also represent a multi-billion dollar advertising stream by siphoning some market share from Google for searches placed within Facebook? Perhaps, though I note again that they don’t even have to go there to reach $30 billion in annual revenues.

Five years from now, billions of dollars of advertising will be spent to direct consumers from one part of Facebook . . . to another part of Facebook, where we’ll be offered real items to buy for ourselves or others (birthday alarm, anyone?), premium services to subscribe to, virtual goods to procure and play with, and deals-of-the-moment available for immediate purchase (or we’ll miss out forever!).

This is where the manyfold revenue streams of Facebook Credits become apparent, and they all have in common this observation: if you give Facebook users a few free Credits with the block of Credits they buy (at Targetonline, and soon anywhere), they will spend all of those Credits and then want to purchase more. Rather than a straightforward discount, the new math of Facebook Credits means that consumers will never quite be sure if they’re getting a discount or cash back or more for less. Kind of like frequent flier miles where we’re never quite sure what the conversion rate is. Or eBay auctions where we “win” the ability to spend money.

Facebook Credits are poised to be this generation’s American Express: an “affordable luxury” lifestyle brand and credit card with reward programs, frequent flier miles, and other incentives built right in so that the more you use it, the more you earn.  ”Facebook Platinum”, anyone? I would have thought they’d need a better brand name than “Facebook Credits” but then again, I would have thought they’d need a better brand name than “Facebook”.

Off the top of my head I can think of five potential billion-dollar revenue streams that dovetail into Facebook Credits—Games, Groupon/Pages & Places, Amazon/Commerce, Inbox, and Photos—and if you really pushed me I could probably think of more, like Banking.  (Remember when Peter Thiel thought part of PayPal’s business model was to capture the float? Well, guess who’s bringing sexyback…)

Games. Facebook is running the real mafia wars, taking 30% while letting the game developers do the heavy lifting. (Hello, Disney, EA, and Zynga!).  Can worldwide virtual goods and other in-game payments represent $10 billion annually floating through Facebook in 5 years? You betcha; more so if “social gambling” Zynga-style becomes more en vogue (that is: legal authorities say it’s okay). Facebook’s 30% cut of that? A cool $3 billion.

Groupon / Pages and Places. This one’s simple: Facebook should just copy 2010′s Flavor of the Year, Groupon, and make it self-service for every Facebook Page and Facebook Place.  Early bird got the worm; Facebook will get the gold. (All that glitters is not Gilt.) Imagine if any Facebook Page or Facebook Place could make Groupon-like deals with its fans any time it wants. Now there would be an actual reason to pay Facebook money for ads that can augment the fan base of a Page or Place!

Holy carp, Batman, they’ve been teaching us to fish all along:  Suddenly consumers have a reason to LIKE Facebook Pages and Facebook Places!! LIKE something, get a deal: it’s that simple.  Groupon’s Gap promotion grossed $11 million in a single summer day in 2010; imagine, five years from now, millions of Facebook Pages and Facebook Places offering regular but expiring deals to their fans every single day.  Wild guess: in aggregate an average of $100 million in deals sold every day worldwide, or $36.5 billion of deals sold every year. At a 30% cut that’s a solid $10 billion straight into Facebook’s pocket per year. In the words of Keanu Reeves, Whoa.

Amazon / Commerce. Amazon was so smart to partner with Facebook: my informal survey of 5000 Facebook friends found many of them willing to make their purchases (and share them!) from within Facebook in exchange for extra Credits.  The details remain to be determined for consumer rewards: will it be like Discover (1% cashback on purchases) or like Visa (earn points! get entered in drawings!) or something else entirely? We’ll see.

If Amazon helps Facebook figure out how to make malls-with-walls and consequently make real shopping money, I have no doubt other e-tailers will follow. If PayPal’s 2009 revenue was $2.8 billion with 87 million active accounts, it’s not a stretch to predict that five years from now Facebook too will have 100 million to 150 million active Credits accounts (at least!) bringing in $5 billion in revenue from this business unit alone. Commerce is the grease that accelerates everything, so it seems like it’s just a matter of time before Facebook can acquire PayPal (for its volume, its risk management, and its fraud detection expertise) and fold it in together representing let’s say $12 billion in annual revenue five years from now, creating a true new currency for the world economy.

Inbox. Hotmail Plus, Yahoo! Mail Plus, and Gmail Storage all charge $20/year for premium features. So could Facebook Inbox if it became more mail-like, which is within grasp since Facebooker Paul Buchheit is the creator of Gmail, and he’s highly influential even if he’s not building the new system himself. Bonus points for throwing in an Address Book and Skype-slaying social phone features like Social Voice for free to anyone who purchases Facebook Inbox Pro.  50 million pro accounts at $20/year is a cool $1 billion Inbox product. Nice.

Photos. Fred Wilson may have mocked photos, but they represent big money now that Facebook is by far the world’s largest photo site. And the Facebook Photos product suite is about to be vastly be improved—now with high resolution!—thanks to the addition of the smart, energetic Divvyshot team during Lockdown.  Partners could be literally everyone in this space—Snapfish and Shutterfly and Kodak and Walmart, and a plethora of smaller companies like Zazzle and Picaboo! Five years from now could Facebook help sell 100 million picture books and photo schwag a year, extracting $10 per item from partners?  Easily. $1 billion annually without even thinking hard.

And Photos are just a harbinger of more social applications to come.  Bret Taylor has already hinted at ten other revenue streams. Because he thinks like a startup.

One of the biggest differences between a startup like Facebook and a big company like Google is that at a startup, everyone gets asked all the time how the product plans to make money. This imposes a discipline on the product and the people who develop it. At a big company, every boat does not necessarily have to sit on its own bottom—and this can lead to a “monoculture mindset” that stunts new lines of business and ultimately leaves the corporate ecosystem vulnerable to external forces.

The most famous example of this in our industry is Microsoft’s inability to come to terms with the Web.  When Windows and Office were making money hand over fist, text ads were as small as mouse balls. In some ways, Google is even more extreme, because for the most part no one at Google has appeared to lose sleep over where revenue growth will come from, for a decade. Those entrepreneurial muscles have atrophied, and future revenue potential does not appear to be the driver of any new Google product except Android and Google Instant, and even they follow the simple rule that mo’ searches mean mo’ money, because every search makes Google a dime.

So yes, Google will continue to grow its base of text ads, and other revenue streams like mobile, display, and YouTube should help with starting the growth engine that the recession slowed.

Getting back to Facebook, if I add my rough numbers for Facebook’s TV ad siphoning ($10 billion) + Games ($3 billion) + Places & Pages deals ($10 billion) + Credits & PayPal ($12 billion) + Photos ($1 billion) + Inbox ($1 billion) + Some of Bret Taylor’s other ten applications (???) = over $30 billion (actually, closer to $40 billion)  in annual revenues five years from now. Which is more than Google has in annual revenues today.

Is this analysis sloppy, hasty, laden with assumptions, and likely incorrect? Sure. But does it illustrate the possibilities of a very powerful Facebook five years from now? Yes. Yes it does. The main message that I want to send with this note is: This is not a game, because this is a very big market. The stakes are very real.

This is not about the revenue streams Facebook has; it’s about the revenue streams they’re about to have. Take to heart the hockey lesson from Wayne Gretszky’s father: “skate
where the puck’s going, not where it’s been.

Remember a better time back in 2004 when Jason Kottke boldly predicted that Google would become “the biggest and most important company in the world in 5-8 years” by selling access to the world’s biggest, best, and most cleverly utilized map of the web?  Kottke was right except for one detail: the most improtant company in the world is Apple, not Google. In any case, I am going to make a similar prediction:

Facebook is going to become the biggest and most important company in the world in 5-8 years by selling access to the world’s biggest, best, and most cleverly utilized map of the closed Web that’s been shared among friends.

If Google agrees and wants to avoid that future, what should Google do with its $35 billion in cash and its Google Me team? Unfortunately, Google can’t friend Facebook. Maybe they should friend the Quora community? I’ve found that illuminating.

Talking on Quora with a woman who interned for Google and then Facebook (and now works for Quora), I was struck by her words:

I’m afraid another failed social effort might mean the beginning of a serious decline [for Google]. This is both a function of external perception and internal sentiment. Users will only have so much patience for Google’s experimentation, and things like pulling the plug on Wave can’t be good for the company brand.  Plus, Google needs to be able to sustain employee morale, especially given the highly publicized talent wars of late… I also think Facebook needs some competition.

I concur.

Mark Zuckerberg told Michael Arrington that to make insanely great social products, “you have to design [social into products] from the ground up.” I wholeheartedly agree! My question is, why does everyone think that Facebook has won the social networking game and that no one else should even try to make a better social network? They only have a 600 million person head start; that’s less than a tenth of the planet, people.

Doesn’t anyone with resources even want to build a better social network anymore? It sure doesn’t seem like it. Google is developing an abstract social layer; Twitter calls itself an information and content network; LinkedIn is a professional network with sprinkles of social pixie dust; MySpace is a discovery channel; Yahoo is a mumble mumble; and the last great hope, Apple Ping, is a faux-ial network, unwittingly proving Zuckerberg’s main point to Arrington with how much it blows:

2 How Facebook Can Become Bigger In Five Years Than Google Is Today

As 2010 draws to a close, only a movie and an open source project (Diaspora) have the chutzpah to call themselves a social network. The future of social networking may very well depend on those of us without resources to invent an alternative to Facebook, to create more choice for consumers. Does anyone have the brains, the heart, and the courage to travel down this yellow brick road? Maybe this article ill offer a smart but scrappy entrepreneurial engineer in a garage somewhere the inspiration she or he needs to build a better social network. I just gave you thirty billion reasons why I believe this market is the market to go after if you want to make a fortune, have fun, and change the world. And I will do anything in my power to help you. I know a venture capitalist ready and eager to put $25 million to work to get this party started. And heck, I might even consider coming out of retirement for this opportunity. Call me. Or better yet, Google Me.

Editor’s note: Guest author Adam Rifkin is a Silicon Valley veteran who organizes a networking group for entrepreneurial engineers called 106 Miles. His last guest post was about his frustrations with Gmail.

Image credit: Mister Sweaters; Photo credit: Erick Tseng.

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 How Facebook Can Become Bigger In Five Years Than Google Is Today
 How Facebook Can Become Bigger In Five Years Than Google Is Today

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 How Facebook Can Become Bigger In Five Years Than Google Is Today

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