How much is a Facebook App Worth?
There are a lot of metrics that help valuate how much a website and Facebook app is worth. The two that matter to me if I was buying it are... how many links can I drive with it and how effectively can I market it.
First of all, let's say that a non focused click from a US user is worth $0.10. If I can drive 1000 clicks a day from my website/app then I'm getting around $36000 a year in value, assuming the traffic is stable and not growing.
If I had the cash I would buy a property like that for $72 000. $0.10 per click is a great price. I haven't been able to find anything on an ad network under $0.15 a click for US traffic.
As a rough estimate we used to drive around 1000 clicks from 10000 daily active users. You could probably push that to 1500 if you really tried, but 1000 clicks per 10k DAU is a good base.
Most apps have special themes like Vampires or Werewolves. To get the 1K for 10K you need to be a bit creative and do some ties-in like '9/10 werewolves use ____ website'. We've always used tie-ins and it's never terribly difficult to get a good idea.
More nefarious app owners use notifications and e-mails to reach dormant users. An e-mail to a user is at least worth $0.01. We've done tests and a 1% e-mail CTR is about standard. It's important to note that all e-mails make the user's inbox.
I'm saying that an empty Facebook application can be worth it for the e-mails. $0.01 an e-mail. Any active users it has is gravy.
So my floor valuation for any app would be $0.01 per install + $72000 for every 10 000 DAU. Anything at that price or lower I'd recommend a buy.
First of all, let's say that a non focused click from a US user is worth $0.10. If I can drive 1000 clicks a day from my website/app then I'm getting around $36000 a year in value, assuming the traffic is stable and not growing.
If I had the cash I would buy a property like that for $72 000. $0.10 per click is a great price. I haven't been able to find anything on an ad network under $0.15 a click for US traffic.
As a rough estimate we used to drive around 1000 clicks from 10000 daily active users. You could probably push that to 1500 if you really tried, but 1000 clicks per 10k DAU is a good base.
Most apps have special themes like Vampires or Werewolves. To get the 1K for 10K you need to be a bit creative and do some ties-in like '9/10 werewolves use ____ website'. We've always used tie-ins and it's never terribly difficult to get a good idea.
More nefarious app owners use notifications and e-mails to reach dormant users. An e-mail to a user is at least worth $0.01. We've done tests and a 1% e-mail CTR is about standard. It's important to note that all e-mails make the user's inbox.
I'm saying that an empty Facebook application can be worth it for the e-mails. $0.01 an e-mail. Any active users it has is gravy.
So my floor valuation for any app would be $0.01 per install + $72000 for every 10 000 DAU. Anything at that price or lower I'd recommend a buy.
posted by Mark M - Clutterme Founder at
2:44 PM
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