/10 reasons why your company shouldn’t be on Facebook

10 reasons why your company shouldn’t be on Facebook

There is an “irresistible” trend to create corporate (fan) pages on Facebook. As all trends, it is not based on consistent arguments but on watching what other people are doing. And in this case it is a big mistake to follow the trend. These are some reasons against opening corporate pages on Facebook:

1. There is no need to be on Facebook, as it is part of the Internet. There is a need to be on the Internet, but not on Facebook. Facebook is just a social networking platform in which people express themselves. Companies do not behave as humans. If you need some social functions on your site, you can use Facebook Connect.

2. It’s going to cost you money. Facebook is going to change its business model very soon. It’s having a hard time to make profits and it will probably start charging people to use its network really soon. Companies are going to have to pay for sure.

3. Facebook is too obscure as a company. It has changed its rules too many times and, as they are not public (on the stock market), they don’t have any requirements in terms of the information they should show. The fact that its main shareholder is a Russian fund is not a very good sign.

4. People are having problems to get customers thru Facebook. There are companies that are making money thru Facebook, but they do sell something. Zynga, for example, sells virtual goods. But the companies that are trying to use Facebook as a platform to get customers that fly to their sites are having a hard time. People don’t click on Facebook’s ads. They just click on things that their friends recommend, so the best communication strategy is to try to get those recommendations, which does not necessarily mean opening fan pages.

5. Facebook is more like a bar (a free one, by the way) than like a place to make business. Should you be there? Only if you sell drinks, as Zynga is doing. It might also be interesting if you want to know how many fans you have, as a music star would do. But not for a company.

6. Nobody knows if Facebook is going to be there next year. Will there be another network which becomes much larger?

7. A corporate page on Facebook has too many limitations, when compared to a corporate site on the net. It can’t be a substitute so far.

8. Facebook is mainly a viral channel and you can put on it whatever you want, without the need of creating a fan page. If you want a brand to spread on Facebook, you don’t really need a page; what you need is people to talk about your brand.

9. There are lots of risks on Facebook. Ask Nestlé if you have any doubts. Its corporate Facebook page was used by Greenpeace activists to criticize the use of palm oil by the company. Palm oil consumption is considered one of the main reasons of deforestation in Indonesia.

10. It’s not easy to differenciate yourself on Facebook. All fan pages are very similar. It’s true that you can play with your logo, but that’s all. It’s actually just a forum with some stats on it. Not much so far.

I am organizing a workshop on this subject during the next nonick conference.