

Web 2.0 = Bubble 2.0? - markbao
http://dondodge.typepad.com/the_next_big_thing/2008/05/at-tiecon-east-friday-may-30th-fred-wilson-and-i-will-be-debating-web-20-viable-business-model-or-bursting-bubble-david-cancel-lookery-will-be-moderating-and-we-will-be-joined-by-brian-balfour-viximo-and-nabeel-hyatt-conduit-la.html

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schtog
i have started to think they might ultimately fail at generating revenue for
what they first set out to do but they might transform into something else
instead that can be profitable.

for example there has been some talk about facebook as a webOS and this is
something i have been thinking about lately. having your own customizable OS
that you could access anywhere from any device is interesting and handy.

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sabat
_Advertising Revenue Math - How much traffic is needed to generate $1M in ad
revenue? It all depends on how well you can target your audience and how much
you can charge for CPM rates. For social network sites let's assume an average
CPM of $0.40. You would need 2.5 Billion page views per month to earn $1M in
ad revenues. That is 2,500,000,000 page views...how many sites generate that
traffic?_

1- $1 million per _what_?

2- 2.5 billion page views -- if Facebook isn't doing that, it's pretty close.
Is Facebook's cost of operation > $1 million per month? It shouldn't be. It
shouldn't be anywhere near that. Therefore: profit. Where's the problem?

 _All booms eventually go bust._

Little booms do, but big "booms" last longer, at least, if not forever. For
example, that little boom they call telephony. Or the personal computer. Or
this whole internet thing.

~~~
jonknee
Facebook's definitely spending more than $1m a month. Way more. They have over
500 employees. Do the math, at $1m/mo and only factoring in staff costs
everyone would have to be making 24k a year without any benefits.

I would say $10m/mo is a conservative estimate.

