1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

2Mil User App...

Discussion in 'FaceBook' started by ColmDooney, Mar 27, 2010.

  1. ColmDooney

    ColmDooney Registered Member

    Joined:
    Dec 31, 2009
    Messages:
    59
    Likes Received:
    5
    Hey BHW, My friend ( a PHP application developer ) has a facebook application with 2Million monthly active users and generates a revenue of around 500$ a day, just wondering, how much is it worth cos he is considering selling it???
    Thanks BHW,
    colmdooney
     
  2. Sprouts

    Sprouts Regular Member

    Joined:
    Mar 20, 2010
    Messages:
    461
    Likes Received:
    324
    Educated guess, 40k depending on what application i.e. can it get banned or not.
     
  3. CashFlowGuy

    CashFlowGuy Regular Member

    Joined:
    Mar 15, 2010
    Messages:
    357
    Likes Received:
    67
    40k is shooting a bit low, a facebook group cost 10k for a million members. Well for 2 million its 20k right. My friend got offered 15k for his group of a million. So im sure he could have recived 30k for 2 million members.

    Your friend is looking between 50k-100k. Now im no expert, but it depends on the niche, avtivity of the members, the popularity, the growth ect.

    So your looking at somthing that could really be worth some money. If he sold it he could take a vacation and have a bunch of extra money to invest with.
     
  4. bluebitza

    bluebitza Newbie

    Joined:
    Mar 24, 2010
    Messages:
    15
    Likes Received:
    4
    Typically 15 months worth of income in advance. That would be $225,000.
     
  5. ColmDooney

    ColmDooney Registered Member

    Joined:
    Dec 31, 2009
    Messages:
    59
    Likes Received:
    5
    Thanks for the replies guys, see he told me to sell it for him as he dont really know how to just looking at a rough price etc.
     
  6. CEPI

    CEPI Power Member

    Joined:
    May 15, 2009
    Messages:
    502
    Likes Received:
    1,922
    Occupation:
    Business Turn Around & Management Consultant
    Location:
    Cosmos

    Definitely in the right ballpark at the 225k range. Like a previous poster mentioned as well about the chances of it being banned is very important. If it follows all FB-TOS and it is very safe then he is easily looking at a price between $260,000 and $330,000. That is taking a 1 year income valuation taking an additional 3-5%/month income growth that would roughly be the value 12 months from today.

    Being in banking and buyouts previously, anytime you can by a business for the equivalent of a 1:1 ratio of the 12 month multiple you are doing VERY well... as a buyer...

    as a seller you might be an idiot unless you know something about a change in service that may kill the business model.

    I guess in a changing speed of Facebook, I would only pay the 12 month forward value, because you just never know. If you had a "brick and morter" establishment with a $500/day track record and no chances of shut down, the valuation would come in between $530,000 - $1,050,000 thats a 3% annual growth (obviously facebook apps and online growth rates can trump brick storefronts all day long) using a 3 - 5 year steady increasing pro-forma. With brick and morter you can feel pretty good with 3% annual growth and no major changes in 3-5 years. Online however, he may find buyers are valuing only 6 months to a year out due to the "situations out of buyer/seller control" eg. Facebook TOS.

    At any rate it sounds like he has a money maker at any price point above his cost of development and I would recommend with the multiple changes in TOS of Facebook that seem to be happening it may be a good idea to cash out now. The steady income is great, however, when dealing with the 3rd wheel (facebook) they might decide at any point to take your income, and your selling opportunity at any point. I say sell it while you still can.


    Hope it helps a bit. ;)
     
  7. Peter Shaw

    Peter Shaw BANNED BANNED

    Joined:
    Sep 1, 2009
    Messages:
    902
    Likes Received:
    359
    What friend? :rolleyes:
     
  8. jagrmeister721

    jagrmeister721 Junior Member

    Joined:
    Apr 3, 2008
    Messages:
    169
    Likes Received:
    28
    Occupation:
    Doing stuff I love which makes me money
    Location:
    San Francisco
    Just a heads up. I have had bad experiences buying FB apps. IN one case, somehow the owner got the MAU (monthly average users) up, likely artificially. Once I purchased it, usage disappeared almost overnight. When someone is making $500 of an app everyday, it is difficult to perceive why they would want to sell it- especially since many apps on FB are effectively on auto-pilot with some degree of maintenance. I would suggest if you're interested to inquire carefully about how long the app has had this rate of monthly users and how the users were acquired. Kick the tires by look at the APP stats page through the Developer app which will give more insight into the nature of usage.
     
  9. ColmDooney

    ColmDooney Registered Member

    Joined:
    Dec 31, 2009
    Messages:
    59
    Likes Received:
    5
    ;)
    Yes I understand about the inflation of MAU but trust that this is not, very viral app, PM me if you want the details, can't say publicly but the fans of the app is about 60k so in my eyes it can't of been cheated :D
     
  10. theviralguy

    theviralguy Jr. VIP Jr. VIP Premium Member

    Joined:
    Dec 16, 2008
    Messages:
    970
    Likes Received:
    290
    Location:
    BC
    how much is a fan page making $6k/day worth? I just want to dream lol.
     
  11. thinkinghat

    thinkinghat Regular Member

    Joined:
    Nov 27, 2009
    Messages:
    374
    Likes Received:
    433
    Location:
    BHW
    last month a simple fb app with 500k fans was sold on flippa for 50k bin.the owner didnt mentioned how much he was making/day..
    with 2 million actives..give it a go..i will post the url if i find it.

    here it is
    Code:
    
    http://flippa.com/auctions/84617/Successful-Facebook-Application-380-000-plus-Fans--High-Income-Low-Cost
    
    
     
  12. Peter Shaw

    Peter Shaw BANNED BANNED

    Joined:
    Sep 1, 2009
    Messages:
    902
    Likes Received:
    359
    Dont tell me its russellhope?