Facebook made three clear mistakes: - Not building in a revenue model into their platform, like Apple did with iOS. This is so stupid. - Not creating clear and consistent access rules around the social graph and notifications, with the ability to throttle down (but not altogether remove) access for offenders. They could even automate the throttling based on user feedback (in the form of clicks). - Breaking things con…
It was not completely obvious in 2007 that in-app virtual item transactions were to stay. Facebook itself was playing around with virtual gifts, but convincing users to pull out their credit card on a social network was novel.
It was pretty hard to predict specific monetization pattern - iLike looked into ticket-selling, Visual Bookshelf would do affiliate links to Amazon, Slide's apps would monetize through standard banner ads (and later video ads), Zynga was not even around at the time.