

Ask HN: If users had to pay for Facebook, at what price would it break even? - exit

no price tiering
======
bigohms
It is difficult to say right now. As a private company, much information is
hidden from plain view. In debt, Facebook has received approx 15B in
commitments that have some sort of debt terms behind them that would require
servicing. Clarity is not known there. Facebook's infrastructure and human
capital needs are growing on a daily basis as well. In 2008 (a long time ago
in internet years), it was widely reported that FB broke even with roughly
around $300MM in revenues. In today's numbers, expect this to be nearly double
($500MM) given the increased expeditures in infrastructure and people as the
site has grown exponentially.

Assuming this VERY rough imaginary cost, a 750MM membership base, Facebook
would need to convert 1% (7.5MM) of the user base into premium users at a cost
of $5.56 per month to break even.

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exit
1% of users at $5.56, so less than $0.06 a month if everyone paid? that's
really surprisingly low. thanks for this analysis.

