I hate to be negative about the economy, but even in our current state social networks still have a ton of value. Using Facebook as an example, let’s talk about how the company’s value has sequentially compared to the state of our recession:
To Preface take a look at this video in order to understand the value of Facebook, if it was traded publicly:
…Interesting News about how the economy is affecting a private online business.
So Why is Facebook so valuable? How are lots o f social networking site owners flying around in private jets?? How much Money is 15 Billion Dollars???
Can you imagine being a site owner, creating a great social environment, and then you get a phone call…. “Excuse me, are you the owner of ________.com?”
“We would like to offer you Fifteen Billion Dollars for your nice website, but due to the recession, we can only offer you 6.5 Billion….”
6.5 Billion, is like 6,500 Millions. Why would a company known as Digital Sky Technologies, an investment firm located in Russia (who recently invested $200 million in Facebook) offer Facebook this amount of money.
Money equals value, so let’s break up 6,500 Million (6.5 Billion) into what Digital Sky potentially wants out of Facebook:
-Softare Infrastructure……………………………….=$500 Million Dollars
-The Brand)…………………………………………… = $1,000 Million Dollars
(name, market share, logo, etc.)
-Advertising Potential………………………………..= $2,000 Million Dollars
-Marketing Data……………………………………….= $3,000 Million Dollars
~400 Million Members……………………………….= Priceless
Just for fun, this is what I would imagine the 6.5 Billion would break down too. As you can see, the data and advertising potential make up for the meat of the deal. The 4oo million members though… now this is the really interesting part:
If you take the 6.5 Billion Dollar proposal and divide it by the 400 million users within Facebook, you get $16.25 per person. That’s a pretty penny!
These are some pretty ridiculous values! We could talk for hours about the internet, Facebook, and how much money there is to be made, but really here are the essential points that I am trying to make.
-It is possible to make a website worth over 15 Billion Dollars …on a good day
-Despite our lowered economic status, investors will still pay 6.5 Billion Dollars for a website
-Market Data, Advertising Dollars, and Impressions are what make up this ridiculous value
-A college student created Facebook
-Anyone can own a social network
-Anyone can target a niche
If you are interested in owning your own social network, with any name, and in any industry, give us a call: 404.939.6011
http://techcrunch.com/2007/10/25/perspective-facebook-is-now-5th-most-valuable-us-internet-company/
See what others are saying about owning your own social network:
Here are some real time statistics straight from Facebook to you. …Looks like the 400 millions users has gone up to 500 million…
- More than 500 million active users
- 50% of our active users log on to Facebook in any given day
- Average user has 130 friends
- People spend over 700 billion minutes per month on Facebook
- There are over 900 million objects that people interact with (pages, groups, events and community pages)
- Average user is connected to 80 community pages, groups and events
- Average user creates 90 pieces of content each month
- More than 30 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each month.
- More than 70 translations available on the site
- About 70% of Facebook users are outside the United States
- Over 300,000 users helped translate the site through the translations application
- More than one million developers and entrepreneurs from more than 180 countries
- Every month, more than 70% of Facebook users engage with Platform applications
- More than 550,000 active applications currently on Facebook Platform
- More than one million websites have integrated with Facebook Platform
- More than 150 million people engage with Facebook on external websites every month
- Two-thirds of comScore’s U.S. Top 100 websites and half of comScore’s Global Top 100 websites have integrated with Facebook
- There are more than 150 million active users currently accessing Facebook through their mobile devices.
- People that use Facebook on their mobile devices are twice more active on Facebook than non-mobile users.
- There are more than 200 mobile operators in 60 countries working to deploy and promote Facebook mobile products
Take a look at the opportunity to run your own social network here. www.snempire.com
Social Network Site Benefits | Shanq Web : Integrated Web Marketing
There is good number of advantages in having your own social networking website. It has a great amount of value in internet marketing. It is also true that internet marketing could also be established without such a network, … For one, it is much easier to put together a large email address list by owning a social networking website. For such a website, you need to plan and have a marketing strategy, and with the deployment of the right social network software, …
Publish Date: 07/29/2010 2:54
http://shanq.net/social-network-site-benefits/
Why You Should Own Your Own Social Networking Site « HC Consulting …
This is an amazing asset for you to own and pass down to future generations. One of my favorite parts about owning a social networking site is the fact that the content and information shared on your website is all user generated. …
Publish Date: 07/27/2010 14:59
http://hcdesk.com/blog/why-you-should-own-your-own-social-networking-site/
5 Tips for Aspiring Social Media Marketers | Emersion Solutions, Inc.
Create your own networking event if you can’t find a nearby group to suit your interests.” Joining groups like the New York Tech Meetup and Social Media Club are a great start to getting to know professionals in the industry. …. -Soraya Darabi; “I consider owning some information channel that seems to be interesting a “must have”. Even if it’s your Twitter, a forum, or maybe a very good blog. And don’t forget to show that you are always learning, don’t try to be a …
Publish Date: 07/26/2010 10:15
http://emersionsolutions.com/5-tips-for-aspiring-social-media-marketers/
Usually I do not post on blogs, but I would like to say that this article really forced me to do so! Thanks, really nice article.