Facebook CEO Mark Zuckerberg earlier this month at TechCrunch Disrupt in San Francisco
(Credit: Daniel Terdiman/CNET)Facebook Offers won't be free much longer, with the company finding a new way to grow revenue by charging merchants to run deals on its site.
The social networking giant launched Facebook Offers a year ago as a free service that allows business to send promotions directly to user news feeds. The service, which competes with Groupon and other similar offerings, allows a company's Facebook fans to redeem vouchers for discounts.
But Reuters is reporting today that Facebook will require merchants to spend at least $5 on related ads to promote each offer to a targeted audience. The report said the cost will vary based on the size of a company's Facebook pages.
Facebook's IPO was one of the most anticipated debuts of all time, but the company has since faced questions about its ability to grow and make money. Chief among the worries is doubt about Facebook's mobile strategy, as well as concern about a slowdown in advertising.
According to the Reuters report, Facebook also plans to extend Offers to online-only businesses, not just merchants with physical stores, as in the past. And the vouchers will also now include barcodes, Reuters said, allowing customers to redeem the offers more easily.
Facebook wasn't immediately available to comment.
Shara Tibken 20 Sep, 2012
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Source: http://news.cnet.com/8301-1023_3-57516700-93/facebook-offers-no-longer-free/?part=rss&tag=feed&subj=News-Internet&Media
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