Last week, Simon Freed, James Ashton and Sam Hamilton, creators of the Advent calendar application, put their application up for sale on eBay. The application has over half a million users and over 22,000 daily users. Today, the auction winner bid $7,099. This amounts to one cent per user and approximately $0.33 per active user. Granted, this Facebook application has a short shelf life and the owner will have to figure out a way to drive users to another application in the next few weeks.
No Facebook applications have been sold for a significant amount yet. Currently, all of the money being generated is through advertising and custom application development. Most large companies have been sitting on the sidelines waiting for a first mover to hop in and snatch up an application for a significant amount. Unfotunately that hasn’t happened. Just as Facebook has an unproven advertising model, so do Facebook applications.
I was speaking with Caroline McCarthy of CNet this afternoon and she suggested that potential buyers may be stalling due to recent economic news. Whether or not the economy is the reason, no large acquisitions have taken place yet but there has been fair amount invested. Do you think any Facebook applications will be acquired for a significant amount?
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Don't forget about "Where I've Been"… $3 million (!!)
Comment by Greg — November 26, 2007 @ 12:09 pm
Don't forget about "Where I've Been"… $3 million (!!)
Comment by Greg — November 26, 2007 @ 1:09 pm
All they did is create an image and say it was "limited edition". If anything the lack of winning bid is a sign that Web 2.0 and Facebook apps are not a bubble, and that people actually care about ROI.
Comment by Mark — November 26, 2007 @ 3:29 pm
The buyers of Where I've Been denied that it was purchased for $3m. It was just an unfounded blog rumour.
Comment by David — November 26, 2007 @ 3:59 pm
The buyers of Where I've Been denied that it was purchased for $3m. It was just an unfounded blog rumour.
Comment by David — November 26, 2007 @ 4:59 pm
[...] [via allfacebook] [...]
Pingback by Facebook App Sees Small Selling Price. What’s it Really Worth? — November 26, 2007 @ 9:48 pm
All they did is create an image and say it was “limited edition”. If anything the lack of winning bid is a sign that Web 2.0 and Facebook apps are not a bubble, and that people actually care about ROI.
Comment by Mark — November 26, 2007 @ 11:29 pm
Eventually someone will pay serious money for an application, creators merely need to focus on business model rather than on the number of active users.As other social networks increasingly incorporate user applications, investors will be looking for applications that have established a foothold in numerous networks. Focussing purely on Facebook would be a bad investment
Comment by David S — November 27, 2007 @ 3:30 am
Eventually someone will pay serious money for an application, creators merely need to focus on business model rather than on the number of active users.
As other social networks increasingly incorporate user applications, investors will be looking for applications that have established a foothold in numerous networks. Focussing purely on Facebook would be a bad investment
Comment by David S — November 27, 2007 @ 4:30 am
let's not forget the bogus auction of the "I am Hungry" app, for $20K.(except that Nick still believes it to be legit!).Someone bought that POS for $20K and what, go look, they have done nothing, in months, to it?
Comment by Mark — November 27, 2007 @ 6:16 pm
and why stop with apps, I'd love to unload my Fan Page (141 "fans" and growing) on some sucker(whoops, I mean 'investor').
Comment by Mark — November 27, 2007 @ 6:21 pm
let's not forget the bogus auction of the "I am Hungry" app, for $20K.
(except that Nick still believes it to be legit!).
Someone bought that POS for $20K and what, go look, they have done nothing, in months, to it?
Comment by Mark — November 27, 2007 @ 7:16 pm
and why stop with apps, I'd love to unload my Fan Page (141 "fans" and growing) on some sucker(whoops, I mean 'investor').
Comment by Mark — November 27, 2007 @ 7:21 pm
It's not the economy, it's the profit and ROI that important..
Comment by Marcel — December 13, 2007 @ 7:43 am
It's not the economy, it's the profit and ROI that important..
Comment by Marcel — December 13, 2007 @ 8:43 am