A Question for you Smart GFY Guys.
 

When it comes to social networking sites. What's the given value for a registered user?

If anyone can give me any type of links or information on this I would appreciate it.

Say I wanted to buy Myspace.com How does one determine the value? I think when Myspace was purchased, it was given a value per registered user.

i dont know - i just know they are insanely overrated since none of them makes any real profit

It should be valued same way as any other business, by how much $$ it makes, using anything else is just an attempt to find sucker to overpay what the business is really worth...

Agreed but that isn't the case. There is a value per profile.

is there?

Years ago, each register user was worth about $120.00. Not sure how much of that has changed now.

For myspace?

$10 billion divided by 200 million users = $50 per user.

http://www.huffingtonpost.com/2009/0..._n_207792.html

However, I doubt a small social networking site has the same valuation metrics as a Facebook.

If Facebook is worth $50 per user, it doesn't mean your site is worth the same. They have market leadership. But, it provides a range. I am guessing a small site is worth $10-15 per user.

Great post. Lets here some others.

I don't know if you should assign a per user value. Why would social networking be different than a normal site, where you take around a year of profit, and that's the site's value on the market?

I'm pretty sure FB operates at a loss but their members are worth money. This is really the only way to give a value to a site that does not make a profit.

1st page bumpage

Tube tube tube!

$35 per user. Thread closed.

:1orglaugh:1orglaugh:1orglaugh:1orglaugh

social networking traffic is useless do not bother.

yes facebook operates at a huge loss. same with youtube and tube porn sites.

Because EYEBALLS are worth money. Real unique views and users means advertising money and possibilities.

Youtube is a great example. Many ask why would google pay so much money to own that site, and not make anything substantial off it. If we took Youtubes expenses, and profits to set a value on it, well we wouldn't even come close to what its really worth.

They have the platform to lay out ANYTHING they want to 60-70 MILLION unique viewers over the period of a couple days. This is about more then just 'profits' this is market dominance and control at its finest.

How much would one of the biggest and fastest growing companies in the world pay for such exposure (even if it cost them a million bucks loss a day)? Only about $1.65 billion.

Only a community very targeted towards something you can offer would have a real value..


General social networking traffic = mixture of totally unproductive surfers who are mainly interested in getting in touch with their own bullshit.

Why do you think google wants to own a huge website that runs at a loss?

To cancel out some of the shit ton of money they are making from other parts of the company.

so a shopkeeper from zimbabwe is worth the same as a brain surgeon from new york?

at lot of these responses are down right wrong.

Hiiiiiiiiii

So you are telling me businesses are looking for ways to LOSE money? That's such a silly comment. It has value to the google brand.

I would say that each network and each user has different values. Some may be worthless and some may be priceless... blah blah... but I am probably not the one of smart GFY guys... so...

Are you having a spliff??


You want to buy myspace??? :1orglaugh


If you are that rich then buy all my sites, content and everything for half a million & I may think about it! I shall have to let all my members and surfers know first but fuck me!

Its like worth a few million!!! :Oh crap

You wouldnt be here if you were thinking seriously about shit like that! What a fucking thread!


Can I buy Playboy!? :thumbsup

Dumb post, next

True but I would bet the real value is in the data. Google is all about gathering data. Gathering surfing and searching data on 70 million per day is worth every penny for them + you can bet w/e they pay on bandwidth is pennies compared to what any of us pay.

Google's goal is gathering information. Everything they do, free wi-fi, free dns, browser, apps everything is all aimed at gathering more data.

Once traffic was king, once content was king, now data is king.

Except traffic was never king. Content was and will always be king. Data and traffic is the biproduct of content.

just googling found this:

http://www.techcrunch.com/2008/06/23...cial-networks/

"I believe an effective way to value a particular user is based on the average Internet advertising spend per person in the country they live in."

oddly similar to what i wrote above.

I agree with this.

Why don't you ask your pal Rupert Murdoch? :1orglaugh

I would guess that your price per profile can only be determined once you can figure out what the bookmark or returning visiting rate of the profiles are. Having 500,000 profiles is great, but if they only return once a year what's the point.
Sites like Facebook and myspace make money, don't kid yourself. However they didn't make their money over night. They have very valuable information that I'm convinced they either sell, lease, use in some sort of product targeting way.
They have your location,sex,email address, and age. So with just that info alone, they can determine things like, if you're a 38 yr old female with two kids, chances are you're a bit over weight and they can get you on some sort of weight loss product. If you're a single 33 yr old male they'll sell you on dating sites, or some type of cheap fitness plan.
These are just some of the basic things they can target, imagine what a trained mainstream marketing firm can come up with, but it all relies on the pattern of the surfer. Find that out and you'll find out what they're worth.

Hope that helps.:2 cents:

I am sure there are much smarter guys than us porn peddlers that figure this stuff out haha ;-)

they make money selling your information to 3rd party companies duh!