Likeonomics: How Facebook Is Changing Online Business

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Likeonomics (n.): The study of how affinities and passions affect the production, distribution, and consumption of goods and services.

The Keyword Made The Web What it Is

You might not realize it, but the way Google works has shaped the web for the last 10 years. Think about it for a second…

How many new websites were created because of popular keywords? Search demand drove new businesses.

How many landing pages were created for AdWords keywords and ads? Keywords shaped website content and architecture.

How many websites cashed in on traffic brought in by keywords with buying intent?

The keyword has made much of the web what it is.

In fact, you might be so stuck in that mindset that you don’t realize how different Facebook marketing is, and how it might begin to change the web’s shape, now that it’s bigger than Google.

How is Facebook Marketing Different From Search Marketing?

Facebook is not about the keyword like Google is; it’s about interests (and demographics).

Facebook isn’t about finding and capitalizing on buying intent like Google is; it’s about capturing qualified prospects and influencing them to buy from you and to buy sooner than they would have.

One of the dirty little secrets of AdWords is that very few keywords drive profitable sales for most businesses. That severely limits the amount of business you can do profitably. Is there a way to expand the conversion funnel and make profits off prospects from higher up the funnel? Yes – Facebook.

Likes Will Reshape Online Business

Facebook is about likes. It’s overwhelmingly positive. There is no DISLIKE button. So how do likes affect the economy through Facebook?

Likes qualify prospects, decreasing your cost per sale and increasing ROI

Likes decrease costs because high CTR on ads lowers cost per fan and high feedback rate on posts lowers cost per (post) impression

Likes increase sales by arousing desire in the AIDA process

Likes prove your prospects are paying attention

Likes create loyalty that leads to testimonials and brand defenders

Likes affirm prospects’ desire for your offerings

Likes drive people toward their next purchase

Photo credits:

Brian Carter
Brian is author of The Like Economy: How Businesses Make Money With Facebook and Facebook Marketing: Leveraging Facebook's Features For Your Marketing Campaigns, How to... Read Full Bio
Brian Carter
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  • Benjamin Fox

    Why is there a woman in a bikin in this article? I like the article but I don’t get the image. 

  • Souleye Cisse

    all this sounds perfect but it’s not substantiated by facts. there has not been soffar any credible study that likes translate in more conversions. actually there are a lot of reports stipulating that in spite of the vast amounts of cash thrown at social media the roi is not that great. if likes were occurring naturally but the fact is that big companies bribe visitors with freebies for them to click on the like button. if you tell me ‘if you like me I’m gonna offer you this’, then I’m gonna like you just to get what I want and you won’t hear from me anymore. looks like that’s what’s happening.

  • Useless Dude

    Facebook promotion + girl in bikini = what social media is all about. Eye candy and sore tooth.

  • Interesting insights. This strategy will surely put small businesses a chance to compete and advertise their products.

  •  I think that likes also keep you in front of your audience. The importance of updates should also be part of a facebook campaign, no?

  • Wow, this was a really great post! I enjoyed reading it and although each point was short and to the point, they were all factual and very helpful! 

  • Jayluv

     my english is not great, so: i don´t get the article, but i liked the bikini-image… 

  • Prajil anandhan

    Brian, Article sounds good, instead post an article how to increase likes for a small business page. It seems celebrity pages getting more likes, other than businesses.

  • There is no denying that social media has changed the way both consumers and businesses act online. We have to remember that the user intent behind someone clicking on a Facebook ad vs. someone actively searching for something is still very different. A Facebook ad can be tailored based on someone’s profile information, but that doesn’t mean they are actually looking for that product or service, they are passive users. When someone conducts a search in Google, they are seeking out that information and becoming an active user. 

  •  very much like! Nice post!

  • Anonymous

    Face book changing  online business, this really best and this social sites are really best for online business and it increase your online business.

    search engine optimization services

  • LiveCheapr would have definitely grown much slower without Facebook Likes

  • Facebook has changed the face of the internet today. Do you know that
    Facebook has more than 200 million users? Facebook has changed the lives
    of all who use it from young to old.

  • I’m not convinced that Facebook will dictate the future direction of the internet.

  • Afrin

    For the time being this is enjoyable and real picture of facebook users.