Tiny sidebar and news feed ads aren’t going to cut it. If Facebook wants to live up to a $104 billion valuation it will need bold new revenue streams. An offsite ad network, big glossy news feed ads, and payments for physical goods are a few ways it could boost its average revenue per user far beyond the puny $4.34 a year it earns today.

Facebook has a tough decision to make now that’s going public. It will have to strike a new balance between the good of its users, advertisers, app developers, and investors. If it refuses to explore new business models, its share price could sink. But if it strays too far in favor of making money, Facebook could lose its addictiveness and the faith of its users. Here’s the four aces Mark Zuckerberg could have up his sleeve.

The AdSense Killer

Most ads suck because most advertisers don’t know much about who you are. But Facebook does. What if any website could use everything Facebook knows about you to show you ads you’d want to click? Well, those sites would pay Facebook a lot of money. They also might use Facebook to replace Google AdSense, the current leader amongst ad networks, which analyzes a site and automatically displays relevant ads.

Facebook’s ad network essentially turn ad real estate on any website into places to serve the campaigns that advertisers buy for display on Facebook.com. Anyone currently logged into Facebook who visits one of these sites would be shown ads targeted by their Facebook information, such as age, gender, location, work and education history, interests, app usage, and friends. Facebook and the site hosting an ad would then split the money made on clicks or impressions.......