Methods of Prosperity
Part 41: Mark Zuckerberg (conclusion)
How To Manipulate Facebook Users for Fun and Profit
Fake News, Misinformation, Cambridge Analytica

TL;DR

Peter Theil would consider Facebook a natural monopoly. It’s become THE social networking platform. Most people connect with family and friends on Facebook. Features including the “Like” button solidified its early dominance in the market. Facebook introduced the Like button in 2007. Which simplified user interactions and promoted content based on engagement.

As a second–order consequence, sensational or divisive content is often prioritized. Facebook introduced the Open Graph in 2010. Which further integrated web content into Facebook. This enhanced the presentation of shared content.

False information became an issue.

During the 2016 U.S. Presidential election, the spread of misinformation became problematic. Fabricated stories and Russia-backed content aimed to influence the election. Distorted information reached millions of Americans.

Cambridge Analytica had something to do with it. They used millions of unauthorized profiles to influence voter behavior. This raised serious privacy and data manipulation concerns. Mark Zuckerberg faced congressional scrutiny over these issues.

His net worth has fluctuated since then. As of October 2024, his net worth is approximately $206.2 billion.

Key lessons:
• Have a business with a network effect.
• Bad news gets the most attention.
• Build something at scale.
• Politics ruin everything.
• Be accountable.

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Methods of Prosperity 39. Mark Zuckerberg (continued).

Napster killed the music industry. Launched in 1999, Napster allowed users to download and share MP3 files. Before the internet, we bought and sold music. Now it was free. By March 2000, Napster had over 20 million users. Fans had no incentive to buy records anymore. The Recording Industry Association of America (RIAA) determined this to be copyright infringement. They took legal action against Napster. By 2001, a federal court order it shut Napster down.

Sean Parker was a co-founder of Napster.
In the summer of 2004, Mark Zuckerberg and his team rented a five-bedroom house. The address is 819 La Jennifer Way in Palo Alto, California. Referred to as the “Facebook House” it served as the new headquarters. His team included Sean Parker and Dustin Moskovitz. Eduardo Severin, co-founder and chief financial officer, stayed behind in New York.

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Now it was out there. She changed her relationship status from “single” – to – “in a relationship”. That sinking feeling in the pit of his stomach clenched, writhing into a wad of regret. For some reason, they remained friends after their breakup, and she moved on. He knew better than to react at all. Holding back his comment, he clicked “Like” and logged off.

The above story is fiction, but there was a place in your mind where you knew exactly where it was taking place. Facebook.

Methods of Prosperity 38: Mark Zuckerberg.
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Methods of Prosperity 37
TL;DR
Reid Hoffman is a co-founder of PayPal. After eBay acquired PayPal, Reid Hoffman co-founded LinkedIn with Eric Ly in 2003. Reid Hoffman and Eric Ly envisioned a platform that would do three things. Help individuals find jobs. Connect with professionals in their field. Enhance their career prospects through online networking. LinkedIn focused on professional networking and career development. That set it apart from other social media platforms like Facebook and Myspace. LinkedIn would emphasize users’ professional connections. It did this through profile pages. Resumes, job listings, and networking opportunities connected users. In its early days, user adoption was slow. Microsoft acquired LinkedIn in 2016. Their price was over US$26 billion. It was the largest acquisition in Microsoft's history.
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Wealth is not measured by how much money one has in the bank account, but by how satisfied one is with what one has.

This is not to say that people should not work hard in order to earn more money, or that people should renounce their material wealth and live lives of poverty.

There is no virtue in poverty. The pursuit of wealth for the sake of having money is empty. Money has no intrinsic value.