Facebook, the hugely popular and often controversial social networking service, is expected to announce this week that it has reached 500 million users. It's a momentous milestone for CEO Mark Zuckerberg's company, which just over six years ago was still a dorm-room project on a shoestring budget.
Judging by influence and reach, Facebook today is one of the most successful Internet startups in history, even if not the most profitable. But as the Silicon Valley mantra goes: First build an audience, then monetize it.
Thanks to a deft understanding of the "network effect," in which a service becomes more valuable as more people use it, Facebook has accomplished the first task. And with annual revenue nearing $1 billion, it's making progress on the second.
And the timing of Facebook's milestone couldn't be better for a forthcoming movie, The Social Network. That 500 millionth member will likely sign on just days after the release of the full-length trailer for the Aaron Sorkin-penned, David Fincher-directed film about the company's origins (see video below). The movie's tagline? "You don't get to 500 million friends without making a few enemies."
