Most people think that Facebook is free, but actually paying them with their private data that are worth much more. Facebook users would have to pay for it, says Tim Wu , a professor at Columbia Law School. According to Wu, most people think that Facebook "a good deal" is.
"We think that Facebook is" free "and as marketing professors explain, consumers overreact to things that are free." Most people think they pay nothing for Facebook as they do in reality with their private data, even though they do not feel that a transaction takes place. People thereby underestimate how much their data are actually worth.
Recently asked a user to Facebook to pay in cash for the service. It would amount to 20 cents per month, the amount that Facebook earns from ads. Facebook did not respond, which according to Wu makes sense. The private data are useful for showing ads, which are the main source of revenue for Facebook. The data, however, are also worth money. "It's like a virtual Fort Knox where the gold mine is stuck on," he notes.
Companies that directly paid by their clients exist by virtue of how they serve their customers and treat. For companies that are paid by users in attention and private data there is a conflict. "We are their customers, but we are also their products to eventually be sold to others. We will probably always continue to use free stuff, but we'll pay and the only question is how," concludes Wu.
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