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Just minutes ago Dan Peguine and Adam Gries place their I Am Hungry Application for sale on eBay. This is the second application following yesterday’s first application listing on eBay. The application currently has over 250,000 users. The starting bid for the application is a pretty hefty $5,000. Considering that the application has over 250,000 users though, this isn’t too bad of a price. As they point out on their eBay auction, the application currently has a small amount of activity. This is because they have been focusing their efforts on their other highly popular applications. If you’d like to bid on the “I Am Hungry Application,” go bid now!
I think $5k is a bit much for 600 daily active users.
The application needs to be completely overhauled. But the 250k installed base is very attractive.
I think $5k is a bit much for 600 daily active users.
The application needs to be completely overhauled. But the 250k installed base is very attractive.
To all:
Adonomics has just created a new service where we use:
1. available facebook data (e.g., active users, total installs, total facebook user populuation, total facebook active users,
facebook’s historical growth rate),
2. estimated and/or app provided metrics (e.g., canvas pages views, app users’ reachable via the notification API and/or profile page updates, unique visitors per month, time spent on canvas page, current CPM/CPC/CPI ad revenue levels and/or opportunities, app’s new user and active user growth rates)
3. assumptions about Facebook’s growth rate and the app’s new user growth rate extrapolated over certain forward looking time periods, in the app’s case, influenced by the size to the app’s install base compared to other apps, the age of the app on the
platform compared to other apps of similar age, the category of the app, the competiveness of the app’s category, etc.
4. projections relative to ad revenue for the coming 12 months based on expected growth in CPM/CPC/CPI rates over time and with additional user targeting and then applying best practices WRT managing an app’s ad real estate
(e.g., testing all ad platforms such as AdBrite, back-filling all available app real estate, creating new ad real estate that enhances app stickiness, cross-promoting opportunities, targeting an app to an attractive end user ad demographic, targeting an app to an appropriate ad sponsor)
5. other variables that relate to our own knowledge of app valuations based on apps we’ve purchased, developed, marketed via
various existing ad networks and brokered to third party acquirers and/or ad sponsors.
Based on all of these data points, we come up with a valuation for the I Am Hungry app of around $25K (see http://adonomics.com/about/2367258038)
This is the number that we believe the app is worth assuming that the app is properly packaged for sale and the sales process
is managed in a professional way. Simply putting an app up on eBay and seeing what you get is, in our opinion, not how app
developers will maximize their revenue.
Our goal at Adonomics and Altura Ventures is to help the Facebook developers win by helping them get a fair price for their
apps. While we still advocate not selling an app too early, if an app developer does want to sell, then they should do so in
a way that gets a value that is closer to what their app’s future revenue potential is.
We believe that the Adonomics Estimated Valuations and Adonomics Certified Valuations are a step in that direction. We will
continue to enhance our formula to ensure that it ties to real world numbers. That being said, valuation is what buyer and
seller agree to. So, feel free to sell your app for whatever you wish and feel free to contact us if you don’t think you are
getting a fair price.
Thanks,
Lee Lorenzen
CEO, Altura Ventures — the first Facebook-only VC fund
To all:
Adonomics has just created a new service where we use:
1. available facebook data (e.g., active users, total installs, total facebook user populuation, total facebook active users,
facebook’s historical growth rate),
2. estimated and/or app provided metrics (e.g., canvas pages views, app users’ reachable via the notification API and/or profile page updates, unique visitors per month, time spent on canvas page, current CPM/CPC/CPI ad revenue levels and/or opportunities, app’s new user and active user growth rates)
3. assumptions about Facebook’s growth rate and the app’s new user growth rate extrapolated over certain forward looking time periods, in the app’s case, influenced by the size to the app’s install base compared to other apps, the age of the app on the
platform compared to other apps of similar age, the category of the app, the competiveness of the app’s category, etc.
4. projections relative to ad revenue for the coming 12 months based on expected growth in CPM/CPC/CPI rates over time and with additional user targeting and then applying best practices WRT managing an app’s ad real estate
(e.g., testing all ad platforms such as AdBrite, back-filling all available app real estate, creating new ad real estate that enhances app stickiness, cross-promoting opportunities, targeting an app to an attractive end user ad demographic, targeting an app to an appropriate ad sponsor)
5. other variables that relate to our own knowledge of app valuations based on apps we’ve purchased, developed, marketed via
various existing ad networks and brokered to third party acquirers and/or ad sponsors.
Based on all of these data points, we come up with a valuation for the I Am Hungry app of around $25K (see http://adonomics.com/about/2367258038)
This is the number that we believe the app is worth assuming that the app is properly packaged for sale and the sales process
is managed in a professional way. Simply putting an app up on eBay and seeing what you get is, in our opinion, not how app
developers will maximize their revenue.
Our goal at Adonomics and Altura Ventures is to help the Facebook developers win by helping them get a fair price for their
apps. While we still advocate not selling an app too early, if an app developer does want to sell, then they should do so in
a way that gets a value that is closer to what their app’s future revenue potential is.
We believe that the Adonomics Estimated Valuations and Adonomics Certified Valuations are a step in that direction. We will
continue to enhance our formula to ensure that it ties to real world numbers. That being said, valuation is what buyer and
seller agree to. So, feel free to sell your app for whatever you wish and feel free to contact us if you don’t think you are
getting a fair price.
Thanks,
Lee Lorenzen
CEO, Altura Ventures — the first Facebook-only VC fund
[...] afternoon, Lee Lorenzen posted a comment on my blog about a new feature of Adonomics. Adonomics provides analytics tool comparable to [...]
[...] Second Facebook Application for Sale on eBay - The Unofficial Facebook Blog The I Am Hungry Application is put up for sale on eBay, with a starting bid of 5000$. I’m interested to see how high this ends up. [...]
[...] week ago I wrote about the I Am Hungry application being listed on eBay. Today, the auction ended with a winning bid of [...]
hmm.. we just came up with a Sudoku application; we will soon hit the range of 600 users per day.. so how much do you think we could be saled for ?
hmm.. we just came up with a Sudoku application; we will soon hit the range of 600 users per day.. so how much do you think we could be saled for ?