Do you remember Google before adwords? It was just Google and it returned results for your search, better than any other search engine commercially available. At that time everyone said, now what guys you need to make some money. After perfecting the least obtrusive way of doing ads, they finally began to make some money.
FourSquare is facing a similar problem. They have 10million users (which now with Google+ is really a small amount) and a $600 million valuation, but no income, no revenue.
FourSquare co-founder Naveen Selvadurai told the New York Post that they are using their most recent $50 million dollar investment to build a “dynamic platform” for businesses and users.
Read More After The Break
The [merchant] tools allow you to claim your venue and start running specials and see the dashboard,” Foursquare’s media liaison Erin Gleason told the Post. “That’s all free right now, but it’s obviously very valuable data. So in the future when it’s a little more robust we see the potential to monetize that.” (source: Adweek)
This isn’t exactly news. Dennis Crowley and Naveen were grilled pretty hard at this years SXSW where they were celebrating their anniversary. FourSquare was launched at SXSW in 2009. So monetization has been on the horizon. However at this point in the game with Facebook and Google Places growing leaps and bounds around FourSquare, it leads us to wonder if a monetization model for FourSquare may be coming too late.