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

How are social networking sites appraised?

Discussion in 'Social Networking Sites' started by sageman, Sep 9, 2011.

  1. sageman

    sageman Jr. VIP Jr. VIP

    Joined:
    Aug 15, 2007
    Messages:
    181
    Likes Received:
    34
    For instance, if you have a social networking site with 1 million active users, will it be valued based on a dollar amount per user? If so, what is a reasonable dollar amount per user...$5, $10...?

    Your thoughts...
     
  2. artizhay

    artizhay BANNED BANNED

    Joined:
    Nov 21, 2010
    Messages:
    1,867
    Likes Received:
    1,335
    Well apparently each Facebook user is valued at around $70, if you measure it like that. (750 million users, valued around $55 billion, give or take.)
     
    • Thanks Thanks x 1
  3. sageman

    sageman Jr. VIP Jr. VIP

    Joined:
    Aug 15, 2007
    Messages:
    181
    Likes Received:
    34
    I'm writing a business plan to present to some investors and I have to come up with some enticing value projections, ones that are also credible and feasible to attain.

    I have to explore the entire criteria for assessment. I just figured that user-base will be one of the main factors to take into account.

    Thanks for your input :)
     
  4. artizhay

    artizhay BANNED BANNED

    Joined:
    Nov 21, 2010
    Messages:
    1,867
    Likes Received:
    1,335
    I'm sure many other factors come into play. I hate to reference a movie for business advice, but when Eduardo was pitching to execs in The Social Network, he mentioned duration of visit, frequency of visits, etc. Naturally, having a site with 1 million actively engaged users will be worth a lot more than a site that's been dead for 5 years, even if it's got 1 million users.
     
    • Thanks Thanks x 1