"Alright, what the heck is he talking about now...?"
Mashable took a look at the quarterly SEC filing of SNAP Interactive, which operates the "Are You Interested" and "Meet New People" facebook application that boast 5.2 million and 335,000 members respectively. From this, and the company's market capitalization, they back out $1.40/user based on the following insights:
"As deals become more common in the Facebook application space, the question becomes how much is a user worth? As a publicly traded company, SNAP is sporting a market value of around $10 million. At its current pace, the company looks to pull in $1.5-$2 million in revenue this year, meaning its price-to-sales ratio is 5:1. If you assume a 5x price-to-sales ratio, that would mean each one of SNAP’s users is actually worth around $1.40 (each user pulls in $0.28/yr, if the company is valued at 5x sales, you arrive a $1.40 per user valuation)."
Interestingly, neither applications, nor Frengo, which we'll discuss in a moment, show up on Comscore's ranking of widget adoption.
| Facebook Application | Engaged Widget Viewers (000) | Penetration of Total U.S. Facebook Audience |
| Total Facebook.com Visitors | 33,660 | 100.0% |
| Total Facebook Applications | 20,649 | 61.3% |
| Top Friends (Slide) | 6,230 | 18.5% |
| Movies (Flixster) | 5,199 | 15.4% |
| SuperPoke!(Slide) | 3,626 | 10.8% |
| Compare People | 3,503 | 10.4% |
| iLike | 3,449 | 10.2% |
| Super Wall (RockYou!) | 3,237 | 9.6% |
| Likeness (RockYou!) | 2,693 | 8.0% |
| Quizzes | 2,583 | 7.7% |
| FunWall (Slide) | 2,107 | 6.3% |
| Graffiti | 1,647 | 4.9% |
Second Wave of Facebook Apps
Venture Beat reported on Frengo yesterday as part of the "Second Wave" of Facebook applications centered around companies actually attempting to make money. Frengo has 3.2 million users and gets 12-15 million daily page views. The application is a social dating site and allows users to get new hits directly to their mobile phone as well with the option of charging $5.95 to their cell phone bill to receive more recommendations and new friends. Certainly, the web's modus operandi is to first gather users and then to attempt to monetize them, and the widget trend is no exception to this. Companies like Adonomics are also attempting to put out metrics of usage as well as attempt to quantify the cash value of each of the applications.
Mpayy Secure Payments Widget on its Way
Mpayy's secure payments widget is on its way as has been discussed here. The widget will work with any of the Personal accounts that enable free Person-to-Person money transfers or its Mobile Merchant Accounts that empower direct salespeople from eBay to Mary Kay to Avon ladies with a secure electronic payments system directly from their mobile phones. Mpayy's widget is still in testing, but will be syndicated across facebook, MySpace, Yahoo, iGoogle, and others as seen here.
Mpayy continues to look for charities, political campaigns, and non-profits for whom we will process donations for free. Talks continue, but interested parties can feel free to contact me directly.
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