
I have 250,000 users, now what? - zx76
http://www.insidefacebook.com/2007/06/21/i-have-250000-users-now-what/
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jsjenkins168
How can one monetize a Facebook app?

I've been thinking about this recently.. If your facebook app does well, then
you will pay for it in terms of servers and bandwidth, but where can you make
returns?

Unless you can somehow draw traffic to your site through your facebook app I
think it might be an uphill battle. I heard reports that iLike actually LOST
website traffic after the release of their facebook app.

You are getting some degree of brand recognition but the user base really isnt
yours if they never use your product outside the facebook sandbox.

Any thoughts?

~~~
nickb
Yes, iLike lost about 70% of their traffic. People now think iLike is just a
part of the facebook. They'll be in similar situation as the author of the app
discussed in the article.

Problem with monetizing facebook apps is that not even facebook can monetize
its users through ads: <http://valleywag.com/tech/advertising/facebook-
consistently-the-worst-performing-site-242234.php>

Maybe virtual gifts/items will help facebook's bottom line? Who knows... but
clearly advertising might not be the holy grail.

~~~
yubrew
There's a free gifts facebook app, so no more money from buying gifts.

Advertising is most definitely the holy grail for social networking sites.
Just because no one has done it yet doesn't mean it can't be done.

~~~
iloveyouocean
Networks:Social Networks :: Advertising:Social Advertising ?

Networks:Advertising :: Social Networks: Social Advertising?

If not social advertising, then what? What would social advertising look like
(and I dont think 'viral advertising' is the complete answer) Perhaps this
will be a fruitful thought prompt.

~~~
mr_luc
Users with lots of friends (traffic) can be courted by sponsors automatically,
and include the advertiser's widgets on their page.

These sites are potentially a goldmine because of the contextual information
available, but for the sake of advertisers, popularity/age/sex are probably
all that really matter -- I guess you could throw in location, too -- so it
could be effectively automated.

I like this idea. It seems cynical enough to work.

You're popular, you have lots of 'friends' ... you're a star! Go sell some
Doritos!

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Psyonic
Step 1) Get 250,000 users Step 2) Step 3) Profit!

That's all you gotta do.

~~~
jsjenkins168
Not when your burn rate is through the roof due to rampant hosting fees. More
users != profit.

~~~
Psyonic
You forgot about Step 2.

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amichail
I was under the impression that 250,000 users would be sufficient to attract
VC funding to a startup.

Is this not the case with Facebook apps? Can Facebook apps attract VC funding
at all?

~~~
steve
I would say that his traffic is less "defendable" than a stand-alone site.

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gojomo
For reference, the 55-day-later followup:

The "I Have 250,000 Users, Now What?" guy just sold his Facebook app for $3
million <http://news.ycombinator.com/item?id=43352>

~~~
gojomo
Or maybe not:

Updated: TripAdvisor Denies Buying Facebook App
<http://news.ycombinator.com/item?id=43528>

