4 ms·
Say we can get 10 cents per user per month? 800,000,000 * .1 = 80,000,000 For most smaller scale websites, they are valued at 12-18 months of revenue, meaning
by bmelton 18y ago
Say we can get 10 cents per user per month?
800,000,000 * .1 = 80,000,000
For most smaller scale websites, they are valued at 12-18 months of revenue, meaning Facebook's resale value at about 1,440,000,000.
2 billion isn't that far off the mark given the user base really.
- rantfoil 18y agoUnfortunately for Facebook, it ends up costing as much just in servers and upkeep to support 800 million users.
- potatolicious 18y agoYou still have costs - how many ads will your users click on? How much are advertisers willing to pay for each click? How much does it cost to retain a single user? I can bet you that a Facebook user eats up a lot more than 10 cents a month in storage, bandwidth, CPU usage, etc. The problem with Facebook is that they've targeted a notoriously cheap demographic - one that is both culturally and financially opposed to paying for stuff. The only successful ads I've seen on my Facebook network is for things like college movers and maybe media promotions... You can't tap into the goldmine of actually valuable ads like, say, car sales or law services.
- Andys 18y agoPeople might click on ads that are properly targetted. As it is now, every ad I've seen on FB are way, WAY off base for me. FB perhaps needs to find ways to upload more of the personal activities and data in order to make ads more accurately targeted.
- krschultz 18y agoYou are absolutely right. I do see well targeted ads based on my preferences, but I'm on facebook from september to may at school when I'm broke. In the summer when I'm making solid money I don't go on facebook and thus don't see their ads. Maybe when we all graduate from college and have more money their user base will be more valuable.