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The social networking site only picked up 320,800 new users in the U.S. in June, according to Inside Facebook. That might sound like a lot -- until you compare it with the number of new U.S. users the site grabbed in May: 7.8 million.

Wow. What could have caused a decline like this? The end of the school year? The ongoing privacy brouhaha? Twitter?

Almost certainly its the school break, family holidays, and the like. FWIW, I can only name one of the many FB users I know who thinks that the new privacy implementation isn't sufficient. Most people are pretty apathetic about privacy. I recall a study a couple years back that was held here in the UK and found that most people would have to have their identities stolen twice before they would start to re-think how they handle their data.
Most likely the end of the school year.

As much as I'd like to imagine that Facebook is dying (it has truly horrific usability), I don't think it's going away any time soon.

Shouldn't there be more sign ups towards the end of the school year? So that people can keep in touch with their school friends over the summer.

Maybe everyone already has a FB account.

Usability on facebook is "truly horrific" ...? lol..
Actually I'd like a discussion on this. Are you kidding? I personally think fb usability is terrible as well. The thing is, I can see how thats likely intentional. It is obvious fb wants you to do certain things like share all your crap with friends all the time everywhere and anywhere. So everything that has to do with updates, pics, and the wall, well thats beautifully and easily within reach. But anything else....good luck.

To be clear, I don't use fb, but I opened an account so that I can learn the api and make some page apps. The documentation is old, sporadic, a pain to find, and ...broken. Locating simple things like where my pages are seems to take me forever!! I just have a hard time finding anything on fb that doesn't have to do with status updates and "the wall".

Course I am hardly an "average user" and half a billion people seem to think its good, right? right?

Any thoughts on this?

The funny thing is, Facebook had great usability compared to what it replaced for many people—Myspace—when its functionality was only comparable to what Myspace offered.

As Facebook attempted to integrate itself into more of its users' lifestyles, though, its UI became unfit for the depth of social functionality it had to control.

Most interestingly, from my personal observations, US users under the age of 18 prefer the "uncontrolled" nature of Myspace versus the structured "social institution" feel of Facebook.

Also, as Facebook's users become more familiar with its workings (social, not technical), it becomes quite apparent that there are limitations to having all relationships equal.

This is truly where Facebook fails. I have friends, I have a best friend, I have acquaintances (both business and social), and I have people I don't like, I may have some enemies, too.

But in the realm of Facebook, all these people are my friends, and I have no way to differentiate that within the Facebook platform. I do not believe it is the UI that is the problem, but the underlying architecture of it's "social functionality".

My mom runs a facebook page not for her self but for an organization and she didn't know how to stop getting email notifications , she was reporting them as spam to no avail, and it was as simple as her not seeing the notification tab in options.

Then after I had shown her that she had about 100 tick boxes to un tick. That is just a recent example of usability problems, to be honest these problems only are apparent in uncommon uses of facebook and for the simple part (messages and pictures and such) it is fine.

Edit: I don't use facebook btw so I may be wrong from my troubleshooting experiences

I don't know why I'm responding to a comment this vaporous, but yes, I agree with others that usability on facebook is awful.

Their privacy menu, for instance. They seem to have made it confusing on purpose, including the redesign. I guess intentional poor usability is a different issue, though.

As a new user of the site, it was never clear to me what each section was for. Trying to install apps kept leading me in circles. I clicked links and they never loaded. Facebook tells you pages are 404, when actually you're not authorized to view them. I didn't appear to be authorized to view someof my own pages... getting a 404 instead, which just looked like the site was screwed up (I guess it was, and it is, and as far as I can see it always has been and always will be). I don't even remember all the details, but I am very, very unimpressed with the design of their features.

They should try getting a CEO focused on something other than copying everyone else, but then, that's how the company started I guess.

If it's school year. Anyone has sign up rates for June 2007, 08, 09?
By end of the school year he meant that school usually goes from August/September to May/June for the US and other countries, so the results should be similar if that is the case.

However it is also a possibility that Facebook has grown large enough that the amount of new users is dwindling because it has already signed up the majority of willing users.

What could have caused a decline like this?

What could have caused a recent decline in the month-on-month new user numbers? Well, one possibility is a logistic growth curve

http://en.wikipedia.org/wiki/Logistic_function

based on Facebook having largely already saturated its easiest growth markets. No pattern of growth can remain exponential forever in a finite world.

Doesn't this happen every summer?
Aren't we at the point where we stop counting Facebook registrations as a metric?

Particularly in a discussion on if we are burnt out! You're only going to sign-up once, so burn-out isn't measured by registrations.

Here are there visitor metrics http://siteanalytics.compete.com/facebook.com+google.com+bin...

Doesn't look like they are having any problems. Note google & bing are flat, facebook continues to rise.

No, we aren't at the point where we can stop counting Facebook registrations.

That point is when Facebook has convincingly shown the ability to hold and monetize its users. Since it hasn't reached that point, registrations is the main thing that makes it hot. If it were to start shrinking before it was monetizing, it would be in serious trouble.

Google doesn't need to grow faster than the Internet. Facebook does.

Guess I was ahead of the curve. Was burnt out on facebook the first time I tried it. :)
The story is interesting, but then my inner Gruber was channeled when I read this:

"Yes, people could be getting burned out," said Rob Enderle, principal analyst at Enderle Group.

and remembered that Enderle is a jackass. I don't necessarily remember why Enderle is a jackass, but Gruber says so, so whatever he's in agreement with should be treated with extreme skepticism.

I think I read too much Gruber.

Any financial analyst knows you need to look at year-on-year ("YoY") growth rates for monthly data to eliminate the impact of seasonality. For example, retail sales for a store might fall off sharply in January compared to the preceding December, simply because lots of people were shopping in December for Christmas presents.

So instead of comparing June 2010 to May 2010, you compare May 2010 vs. May 2009 to June 2010 vs. June 2009. So you could say something like, "Facebook registrations were up 30% YoY in May 2010, but were up only 2% YoY in June 2010. Actually, at this point, YoY growth rates might even be negative (i.e., Facebook may have signed up more users in June 2009 than it did in June 2010).

Month-on-month (MoM) comparisons can be interesting, but you need to put them in context to determine if seasonality is affecting the results.

At any rate, the number of new registrations, by definition, says absolutely nothing about whether users are getting burned out on Facebook. You'd need a metric like average time spent on the site per user per month to say something about that.

I can't wait. Burn, baby, burn!
Ha ha. This has to be the biggest community of uptight nerds on the entire Internet.
No, I'm serious. I have 190 points. Please go ahead and downvote all of my posts until it reaches zero.
Meanwhile, it sure seems like Computerworld has it in for Facebook. Here's the latest articles listed in its "Facebook Watch" sidebar:

# Are we burning out on Facebook?

# Web abuzz on talk of Google Facebook killer

# Book about Facebook's beginnings may dim spotlight on privacy

# Facebook CTO: Don't forget Facebook is for sharing

# Facebook dev move won't stop rogue apps, say researchers

# Facebook 'likejacking' attacks continue with flesh appeal

# Is there a replacement for Facebook?

# Facebook CEO says mistakes made, privacy changes coming

# More than half of Facebook users may quit site, poll finds

# Social networks may be sharing your info with advertisers

Status updates among my facebook friends have gone way down since the last facebook privacy flap.

Perhaps facebook's reputation is starting to precede it.

(Though more people I am acquainted with continue to join. They just don't update much or at all.)