Foursquare

Foursquare aims to charge merchants in the future for the valuable data that it provide merchants. With Foursquare’s dynamic platform and apps that allows merchants to track users and post discounts and specials to their location to bring in more customers, Foursquare feels that this valuable information should not be free. Although Foursquare has more than 10 million users and has managed to raise another $50 million in funding, it has not truly made any money yet. So to fix this problem Foursquare plans to start charging merchants to use their site.

Personally I think that this move will ultimately be the decision that destroys Foursquare. Especially with free apps on major social networks like, Facebook with Facebook places, it is a very risky move. With the rapid advancement and evolution of technology it is only a matter of time till someone makes an improved version of Foursquare. Also, charging its users will drive some away and that will leave an opening for someone else to step in. Facebook places is very close to being the same format as that of Foursquare and thus has the potential to steal many users. But, like any business plan it has the potential to pay off in boat loads for Foursquare.

What do you think will happen to Foursquare if they follow through with this plan? The rest of the social media world? Will it open the door for other social medias to start charging users?

http://www.adweek.com/news/technology/foursquare-start-charging-merchants-133800

Written by: Joe Farinella