They are making impressive revenue, but impressive revenue is a relative term. Impressive compared to their pageviews? Not really. Impressive compared to what MySpace is making? It's about the same. Impressive compared to what my blog makes on a monthly basis? Hell yes.

For now, they don't need to worry about that.

If I'm an investor in any tech startup, those are the words I never want to hear from my investment. Being cavalier about squandering my success is the quickest route to being broke. Shrewd investment of time, resources, and expertise is the only way to succeed long-term.

Act like a bootstrapped startup, and you'll never be wanting for cash. Apple and Google both know this - they have money to burn, but they build up large cash reserves. This is smart.

Spending everything in the hopes of netting a couple of smarties is like paying for a superbowl ad to sell your couch.

According to Alexa...

Let me stop you right there. Alexa is as reliable for webstats as Valleywag is reliable for fact verification.

Granted, Facebook has outclassed in terms of attention and traffic every other social network out there. When you're in the number one slot, you're not looking out for number two, you're looking out for numbers two through two million.

In other words, Facebook is competing with the rest of the web.