monetization via Facebook – How to increase ?

I have collected and analyze ed  some value able points about Facebook Applications and How to monetize these.

  • Facebook is the largest social network with a user base exceeding 350 millions. It provides unique and viral channels to increase monetization value and enhance product monetary worth.
  • Facebook has executed well and built up real, sustainable revenue models around its Facebook application developer network.
  • Facebook acquires some real personalization to the offering and creates better monetization opportunities, more fun and ultimately more effective.
  • Web 3.0 = (4C + P + VS)? Well where:
    • P = Personalization,
    • VS = Vertical Search
    • The four C’s are the combination of content, commerce, community and context working with this stratagem would deliberately increase monetization via facebook.
  • Facebook through a little more effort may pick up a splendid assortment of well-known companies that can generate highly scalable monetization models well beyond advertising and developer network fees.
  • The things that the rest of the web universe does is, try to find a mate, look for a job, look for a car or a house, shop, download music, share videos, photos, etc. Notice, all these activities align with the big overheads online that have so far produced large amount of online revenues.
  • Monetization happens primarily through hosting fees and printing / merchandising services. Facebook needs a good back-end that may be including printing / merchandising services too.
  • Similarly, Dating and Matchmaking. If there ever was a killer app for Facebook that is also a large segment, this would be it. I would say, the early-explorers on Facebook arrived in search of love. In the process, the service expanded beyond “love” matches to include “Friend” matches, and it has changed American ethnicity spectacularly by making it “cool” to “connect”, “communicate”, and “socialize”. Generation “Y”, I predict, will be a much more “connected” generation than their isolated, workaholic predecessors, and we have MySpace and Facebook to thank for it.
  • Photo sharing is one of the top segments and in the US the top 10 photo sharing sites draws around 50 million visitors each month i.e. Flickr, Kodak Gallery, Shutter fly, and Photo bucket.
  • A range of facebook apps help developers and operators of games to monetize their product. And while many of these apps also offer a range of services that leverages companies in many ways.
    • Small businesses like doctors, lawyers, restaurants, and others are also responsible for a large amount of Facebook’s revenue generated by the self-serve advertising platform. We expect Facebook to generate somewhere in the range of $450 million this year (2010) on self-serve ads.
  • Another less discussed agreement is the one Facebook has with Microsoft over search. When Microsoft invested $250 million in Facebook at a $15 billion valuation, part of the investment included an agreement to integrate Microsoft’s search results into Facebook. The terms of the agreement have never been public however we believe that Microsoft may be paying Facebook beyond the terms of the initial agreement. Unfortunately for estimate purposes we have to assume that this revenue is negligible although we believe it to be worth at least $150 million a year.
  • It’s a product which enables users to send virtual gifts to one another. At an average cost of $1 per gift, Facebook gifts have become an extremely lucrative business, generating upwards of $100 million last year.
    • The purpose is for developers of applications, like FarmVille and other large social games, to integrate Facebook’s Credits product directly into their applications. Facebook will in turn take a large percentage of all virtual goods sold through applications.
    • Facebook has been experiencing continued growth and through further education about the company’s advertising products, we’d expect Facebook to stay on track to almost double previously quoted estimates of last year’s revenue: $550 million.

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