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This. If Facebook charged $5 to buy the app or $1/month then it wouldn’t be valued nearly as highly as it is now.

by IgorPartola 6y ago

e-clinton 6y ago
Except FB makes $40/year in revenue from folks in the US across all their apps.
- TheRealDunkirk 6y ago
  I was just thinking that Facebook would seem to fit into the sort-of-standard pricing of $5/mo, or $50/yr. If they'd opt you out of ALL advertising for this, that would be something worth considering. They could charge this, and actually make MORE from paying customers. But I'm pretty sure that they would pull the cable stunt, and eventually let ads creep into paying accounts. I deleted my account when the COVID nonsense started. They'd have to pay ME to get back on, and watch morons bloviate about anything involving math or science. I have plenty of my own moronic bloviating, thanks.
  - lostlogin 6y ago
    I think that allowing people to pay and genuinely stopping mining their data would hit FB a lot harder than just $30-40 per year. I’d bet on a correlation between users that are worth more than average and ones who’d pay to avoid being tracked. It’s a claim I have no evidence to support.
- IgorPartola 6y ago
  But their valuation isn’t directly based on that number. That’s the floor on their valuation. The ceiling is “how much more do you think they could extract per person?” Soon as they set a price and drop their current model they in effect put a ceiling on how much they can extract per person since upping the price won’t really work out so well. This grounds their valuation.
lostlogin 6y ago
According to the below link, the revenue per user is US$32 per year and growing. It would need to be more than $1 or they are going backwards. However they wouldn’t have to pay to maintain their creepy advertising systems and would presumably save on processing and bandwidth etc. https://www.statista.com/statistics/234056/facebooks-average-advertising-revenue-per-user/ https://www.statista.com/statistics/234056/facebooks-average...

This. If Facebook charged $5 to buy the app or $1/month then it wouldn’t be valued nearly as highly as it is now.

e-clinton 6y ago

Except FB makes $40/year in revenue from folks in the US across all their apps.

TheRealDunkirk 6y ago
I was just thinking that Facebook would seem to fit into the sort-of-standard pricing of $5/mo, or $50/yr. If they'd opt you out of ALL advertising for this, that would be something worth considering. They could charge this, and actually make MORE from paying customers. But I'm pretty sure that they would pull the cable stunt, and eventually let ads creep into paying accounts. I deleted my account when the COVID nonsense started. They'd have to pay ME to get back on, and watch morons bloviate about anything involving math or science. I have plenty of my own moronic bloviating, thanks.
- lostlogin 6y ago
  I think that allowing people to pay and genuinely stopping mining their data would hit FB a lot harder than just $30-40 per year. I’d bet on a correlation between users that are worth more than average and ones who’d pay to avoid being tracked. It’s a claim I have no evidence to support.
IgorPartola 6y ago
But their valuation isn’t directly based on that number. That’s the floor on their valuation. The ceiling is “how much more do you think they could extract per person?” Soon as they set a price and drop their current model they in effect put a ceiling on how much they can extract per person since upping the price won’t really work out so well. This grounds their valuation.

lostlogin 6y ago

According to the below link, the revenue per user is US$32 per year and growing. It would need to be more than $1 or they are going backwards. However they wouldn’t have to pay to maintain their creepy advertising systems and would presumably save on processing and bandwidth etc. https://www.statista.com/statistics/234056/facebooks-average-advertising-revenue-per-user/ https://www.statista.com/statistics/234056/facebooks-average...