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facebook... by toddy on 12-13-2008 at 05:36 AM
can anyone explain, or sensibly try at least, why facebook is reportedly worth so much money ? 15 billion been floated around quite abit in the news
RE: facebook... by Chrono on 12-13-2008 at 05:37 AM
Maybe because half the internet uses it? 
^ Random statistic, yeah. But you get the point.
RE: facebook... by toddy on 12-13-2008 at 05:51 AM
quote:still, its something that is free, its easily replaced, it seems to offers little reward to the owner.
Originally posted by Chrono
Maybe because half the internet uses it?
^ Random statistic, yeah. But you get the point.
yes you can do some advertising on there, but some been the key, do to much and people are likely to go else where, apart from that I'm struggling to see the benefits to someone trying to make money.
RE: facebook... by Jarrod on 12-13-2008 at 06:28 AM
because it is so widely used the ads on the side get lots of hits
RE: facebook... by zach on 12-13-2008 at 07:02 AM
I've never understood that sort of thing either 
RE: facebook... by Dane on 12-13-2008 at 07:09 AM
Plus, they make over $1 million USD anually on their "$1 USD" Gifts which are basically just pictures you pay for to appear in others profiles. How lame is that, you pay for a picture to appear somewhere...
RE: RE: facebook... by toddy on 12-13-2008 at 08:19 AM
quote:widely used or not, can't see the limit advertising worth 15billion
Originally posted by Jarrod
because it is so widely used the ads on the side get lots of hits
quote:didn't know there where doing that, either way million turn over (granted with adverts i'm guessing the real turn over it quite a bit more) still can't see how it can be valued so high. it doesn't have an USP, nor really does it actually have anything to sell.
Originally posted by Dane
Plus, they make over $1 million USD anually on their "$1 USD" Gifts which are basically just pictures you pay for to appear in others profiles. How lame is that, you pay for a picture to appear somewhere...
how i'm seeing it at the minute (but hoping someone can shed more light on it). facebook is like an empty building that has little use but lots of people are currently standing in. these people are free to come and go, and most won't like change, and is all probability most of these people will move onto a different building soon anyway
so why on earth would anyone buy the building ?
RE: facebook... by Nathan on 12-13-2008 at 01:05 PM
Because it has a huge userbase, and it means they can introduce more profit making schemes. Such as advertising, and shops, and they are introducing a new thing for the plugins (or whatever you call them) where you can pay for them to be analysed and get a "certificate". I think it was like $50 per script.
There's also a huge chain reaction, because plenty of business's want it, so they auction, and the price gets higher and higher, if you see what I mean...
It also has a huge potential for everything else to be honest.
RE: facebook... by Felu on 12-13-2008 at 01:10 PM
More than 130 millions users information (atleast Name & Email) are pretty much, aren't they? You could send them a advertising broadcast and easily make that money back!
As Nathan says, there is a lot of potential. Creativity (for making money out of a website) has no limits.
RE: facebook... by Menthix on 12-13-2008 at 02:46 PM
Active userbase is valued higher than technology... Twitter, Digg, Youtube... all those are free, easy to replace and for from exciting technology, but they are worth billions when you figure out how to monetize them properly. Everyone could build a twitter/digg/youtube clone, but you can't clone a userbase.
Having that said, they numbers these companies are potentially worth don't mean anything when they don't sell... So far Twitter is just a site making no money at all having huge scalability problems and they might just die out owing money to their investors because they have no clue how to turn their userbase into dollars.
quote:Neither does Google
Originally posted by toddy
nor really does it actually have anything to sell.
quote:Nah,with the extremely low rate people respond to spam you wont get your money back that way. Besides, the real big spammers send out way more emails than that daily and they just have to pay some kid for that to write a vrirus and create a huge botnet
Originally posted by Felu
More than 130 millions users information (atleast Name & Email) are pretty much, aren't they? You could send them a advertising broadcast and easily make that money back!
RE: facebook... by Felu on 12-13-2008 at 03:02 PM
quote:Google Adwords
Originally posted by MenthiX
Neither does Google
RE: facebook... by Menthix on 12-13-2008 at 03:12 PM
quote:True, but that's just another way selling advertising space, Facebook sells advertising space too. I thought toddy meant something like subscriptions or a physical product.
Originally posted by Felu
Google Adwords
TBH, Google does sell some subscriptions and physical products mainly to businesses, but there are just a fraction compared to their advertising income.
RE: facebook... by toddy on 12-13-2008 at 03:26 PM
quote:since it was ages ago that i signed up for facebook, i can't remember, but i would assume that in the sign up there is an "facebook would sometime like to send you emails about/from 3rd party companies....." and anyone with any sense says no/unticked the box, thus making selling names & emails on illegal.
Originally posted by Felu
More than 130 millions users information (atleast Name & Email) are pretty much, aren't they? You could send them a advertising broadcast and easily make that money back!
even if by some miracle they legally sell every name & email, who in there right minds buys a product that has been spammed to them. granted i'd guess there is some (nutters) who would think, well facebook says its cool, so i want one. but most people would think, WTF are facebook doing, i didn't signup to x ammount of spam emails a day. they can go f*ck themselves, i'm not buying from them.
quote:but why ? the information/users you're buying, are changing & likely to move on with in a few years
Originally posted by MenthiX
Active userbase is valued higher than technology... Twitter, Digg, Youtube... all those are free, easy to replace and for from exciting technology, but they are worth billions when you figure out how to monetize them properly. Everyone could build a twitter/digg/youtube clone, but you can't clone a userbase.
quote:maybe i should have widened the question, but saying nor does google/facebook/digg so on, doesn't help explained why
Originally posted by MenthiX
Neither does Google
RE: facebook... by Felu on 12-13-2008 at 03:42 PM
Btw I didn't really mean spam emails everyday in your inbox. An occasional advert along with a notification email wouldn't be a big deal... And to tell you the fact, quite a large people would buy if you can sell creatively... its not just like xyz product... buy now!
RE: facebook... by toddy on 12-13-2008 at 03:58 PM
quote:even occasional emails would annoy to most people, if you haven't signed up to something yourself, then you don't want to be received junk from that company, or wise you'd have signed up with 'buy Viagra'/'cheap electrical's'/'stupid shop' yourself
Originally posted by Felu
Btw I didn't really mean spam emails everyday in your inbox. An occasional advert along with a notification email wouldn't be a big deal
quote:no they wouldn't, unless there are offering something a ridiculously low prices, most people don't even take in what the advert is.
Originally posted by Felu
And to tell you the fact, quite a large people would buy if you can sell creatively... its not just like xyz product... buy now!
who here can tell me an advert that has been on facebook/myspace/digg/so on, what was the product? how was the advert designed? did you buy what ever was advertised? or have you all done the same as me, not noticed them, maybe even have them blocked, and not have a clue who's trying to sell what.
RE: RE: facebook... by WaqasTariq on 12-17-2008 at 12:24 PM
quote:
Originally posted by toddy
quote:even occasional emails would annoy to most people, if you haven't signed up to something yourself, then you don't want to be received junk from that company, or wise you'd have signed up with 'buy Viagra'/'cheap electrical's'/'stupid shop' yourself
Originally posted by Felu
Btw I didn't really mean spam emails everyday in your inbox. An occasional advert along with a notification email wouldn't be a big dealquote:no they wouldn't, unless there are offering something a ridiculously low prices, most people don't even take in what the advert is.
Originally posted by Felu
And to tell you the fact, quite a large people would buy if you can sell creatively... its not just like xyz product... buy now!
who here can tell me an advert that has been on facebook/myspace/digg/so on, what was the product? how was the advert designed? did you buy what ever was advertised? or have you all done the same as me, not noticed them, maybe even have them blocked, and not have a clue who's trying to sell what.
Its a numbers game, look at it this way...
Facebook makes a million dollar from the 1$ card they sell lets say the card is worth 0.5 usd so the 0.5usd is the profit so this means
2,000,000 users buy the card in facebook (2,000,000.ppl * 0.5usd = 1,000,000usd)
so this means out of 130,000,000.usrs 2,000,000 ppl are actively buying so almost 2% of the user base buys the cards
not lets say they make 0.05.usd for a click of an addvert and at random 10% users click the addvert everyday so,
13,000,000 * 0.05.usd = 650,000.usd / day = 19,500,000.usd/month = 234,000,000.usd / year
RE: facebook... by bobby2000 on 12-20-2008 at 10:08 PM
i would probably have to say its alot less than 10%. you're probably looking at somewhere around the 1-2% i would of thought