Amidst the latest extensive changes to the Facebook user interface come complaints from columnists, bloggers and millions of users. Many people are upset with Facebook's constant changes, making it nearly impossible to master the site. These complaints are often met with, "So what? Facebook is free. If you don't like it, leave!"
But Facebook isn't free. Users and small businesses still pay to use Facebook, but the medium of exchange has changed.
Costs to Individual Users
There are two ways in which individual users pay for Facebook. The first is through selling their private data, photos, location, etc. to Facebook, which in turn sells it to advertisers. The more data, the more detailed, and the more people from whom Facebook can extract data, the more value Facebook can offer advertisers. Many users, privacy advocacy organizations and government watchdogs have complained about Facebook's perceived lack of respect for privacy. It's clear users place a high value on privacy, yet they seem quite willing to give up much of it to use Facebook.
The other way in which individual users pay for Facebook is through attention. Users are constantly presented with ads. These are the digital equivalent of television commercials. It is a different kind of currency, but these distractions are a form of payment, an idea that is validated by Facebook every time it sells our time and attention to an advertiser.
Costs to Business Users
In addition to the costs outlined above, Facebook's business users have other direct and indirect costs associated with their use of the social network. Many businesses have made substantial investments in advertising and promotion programs centered around their Facebook presence. It's not that simple to tell them to pick up and go elsewhere. (Many of these also pay Facebook for advertising to drive people to their Facebook page, etc. so they have a business relationship with the company.)
It's also expensive for a business to maintain and effective presence on Facebook. This requires building a page, keeping content fresh, responding to messages and comments, and building a community. And finally, there are opportunity costs. Companies that bet on Facebook have decided to commit their limited resources there instead of somewhere else.
You could argue that no one has to do any of these things, but I disagree. Facebook is to social networking what AT&T at its peak was to telecommunications. It's the only game in town. And Facebook certainly isn't free, but its costs may not be obvious at first glance.