Facebook Inc (NASDAQ:FB) in an attempt to gear up its revenue sources has begun charging its users for the promotion of posts on the social networking site.
In a new wave of higher revenue generation activity, the world’s largest social networking company initiated a test run for the new feature whereby the Company will be charging a particular amount of fee from its users for ensuring that a comment or photo shares by the user gets prominent billing in their friends’ newsfeeds.
This feature will be useful for users as the paid postings will be visible on the desktop and mobile versions of Facebook and also the posts will appear on the top of the newsfeeds of their friends for a limited time.
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The social network site is currently testing this feature with few selective US users at a price of $7. The Company has since its IPO introduced various features and revenue generation plans including the previous week’s feature that lets U.S. users buy and send real gifts, such as eyeglasses, pastries and gift cards to their friends.
Shares of Facebook Inc (NASDAQ:FB) treaded down 1.98% to $21.83 at a trading volume of 32 million shares.
The Company reports its third quarter ending September 30, 2012 results of operations on October 23, 2012.
In the last quarter the Company had reported revenue increase of 32% to $1.18 billion with 84% revenue constituted by the advertising revenues. The mobile active users of the social network site increased 67% year over year. Revenue generation from the mobile usage is very low which is posing great concern over the Company’s revenue generating ability.