Are Facebook Application Users Worth $1.40 a Piece?

by David Evans on January 19, 2008 in Dating Research,Social Networking

SNAP Interactive (formerly eTwine Holdings), reported $388,000 in revenue for their fourth quarter, which was up from $35,383 in the third. They attribute the growth to their applications: “Are You Interested� finished December with 5.2 million users, while “Meet New People� claims 350,000. Thus, it can be determined that each user was worth about 7 cents in revenue to SNAP in the quarter, or about 28 cents per year (388,000/5,500,000 * 4).

Based on some basic math, Mashable says that $1.40USD is a reasonable approximation of what an app user is worth, at least for apps with an advertising-based revenue model.

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{ 1 comment… read it below or add one }

Markus January 20, 2008 at 12:50 am

vast majority of that money seems to be coming from the love crush calculator and its various incarnations.

Its been banned by google, many companies promoting these offers are being investigated by the government. http://www.shoemoney.com/2007/11/12/azoogleads-gives-1-million-dollars-to-florida-ag/

On limited inventory it pays 20 times as much as google adsense.

Its definately interesting numbers but the real test will come to see how much they make from non cell phone revenue and revenue that doesn’t come from selling installations to other apps.

At the end of the day making money is all that is important and it looks like they are making cash, the real question is what is a facebook user worth and how sustainable is it. Slide.com funding is another thing to look at.

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