Monetizing on Facebook as a platform

It was recently released that TripAdvisor are to aquire the FaceBook application “Where Ive been” for $3 million. An update at Techcrunch confirms that it has not happened and is still in discussion stage.

“Where I?ve Been” allows users to share where they have been in the world from their Facebook profiles and has approximately 2.3 million users. The suggested price tag of $3 million would put a value of $1.30 on each user, and a lot more for every day the application has been live.

In many cases it would be possible to argue that they are paying for the brand, but I believe its more about the user-base who has installed the application and use it that is of value on Facebook. I think I have it installed on my profile but it is no really brand that I would remember or recommend.

The cool thing is though that this is the first major acquisition of an application dedicated to Facebook. It certainly gives credit to Facebook as a platform when an application for a locked community can be valued that much. Guess the truth is that an application created for Facebook has a lot better possibility to spread than if it would have been released on the open web. And for new applications it might even be possible to argue that Facebook can bee seen as an incubator and bridge over the chasm to mainstream users. Since early adopters easily can share and influence their later adopter friends, they are more likely to adopt new applications and usage.

I hear rumours daily how people leave email and IM to do all their communicaiton inside Facebook and they encourage everyone they have contact with to join. An amazingly trend, but moving into a locked area that is restricting communication in many ways doesn’t sound like a good idea.

~ by Andreas Sigurdsson on August 21, 2007.

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