Did you ever wonder why Facebook would buy Instagram for $1 billion when it had no revenue? I think we have an answer now; the huge user base represents fantastic advertising potential (provided users don’t leave en masse!) In reality, anyone who understands business knows that business needs cash flow. If you aren’t paying for a product then you are the product. Here’s an infographic that describes the recent backlash against Instagram and ends with my theory on why the company put such controversial language in their terms of service (which they then retracted).
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<img src="https://heatherpins.files.wordpress.com/2013/01/instagramdead1.png?w=870" alt="Instagram Backlash Infographic"></br><a href="https://heatherpins.wordpress.com/2013/01/02/terms-of-service-controversy-causes-instagram-backlash-infographic/">From Heather Pinson's blog "HeatherPins!"</a>
By the way, if you manage an online business there is a way to turbocharge your social media promotions by aggregating all of your social media and displaying it on your own website; this solution is called Postano! Check it out! There’s even a free trial! (The product is the product in this case… you are the customer.)