Over the past few months, Facebook has continued to be in the media due to a recent data hack as well as evidence that some consulting companies had been using user data for purposes that were not previously disclosed. This entire process, including a variety of other concerns regarding fake news and targeted ads, could have a major impact on the business model for Facebook in the future. One way that the company could be able to cut back on data usage as well as an accurate news is by having a fee-based model that would charge people a nominal fee to use the website on a monthly basis.
One of the biggest rumors is that Facebook could soon start charging around $12 per month to use the website. While this may not seem like a big cost to those that use it regularly, it could end up having a long lasting impact on the website (https://techcrunch.com/2018/04/15/would-it-make-us-love-or-hate-ads/). Of the more than 1 billion users across the world, many would be appalled by the thought of having to pay and could end up canceling their memberships immediately.
While there will clearly be some backlash if the company was to switch to a fee-based model, there could be some advantages as well. One of the biggest benefits will be the reduction in ads. Many users of the website are already frustrated by the amount of ads that they have to deal with on a regular basis. Once someone chooses to pay for the website, the need for ads will be reduced considerably. This will also likely lead to a reduction in fake news and other information that has been challenging for people to deal with.
Another option may be to cut back on some of the features that Facebook is providing. There are many different features in the social media giant that most people do not use. Getting rid of these features could allow the company to cut costs, which will allow for a reduction in the need to make ad sales.