Facebook Application Developers

Wednesday, March 5, 2008 by Mistlee

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Facebook Application Developers

By Andrew Wee

In a couple of hours time I'll be on the panel at the second Singapore Facebook Developers Garage, which features the topic: " Marketing and Monetization of FB Applications: Hype or Goldmine?"

The session moderator Bernard Leong has posted a kickoff post: Marketing and Monetization of Facebook: Prologue

If you've spoken to me or exchanged emails, you'll know that I'm a pragmatist at heart. Having see the rise of the dotcoms and dot-crashes soon after, I'm certainly not in this application if the end result of facebook monetization is mere "hype".

Talking to Jason Bailey, whom I'm helping to launch his $uperRewards FB monetization system, I've seen the applications and case studies of successful FB applications which are making $100,000 - $200,000 a month.

These applications are probably in the top 5% of Facebook applications that turn a profit and a huge profit at thatand the reality of any capitalist society is that you must benchmark yourself against benchmark yourself against the leaders, rather than the other 90% of Facebook developers who are merely scrambling to find two nickels to rub together

A business must be able to generate positive cashflow and must be able to sustain a comfortable lifestyle for the application creators. Anything less and you're running a charity.

Let's break this down for a moment

An "average" application might generate $10,000 to $15,000 a month, which could be fairly reasonableuntil you break that $15,000 by 30 days, or $500 a day.

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$15,000 a month or $500 a day, with an assumption of 50,000 daily active users means you are generating 1 cent per daily userthat's pretty pathetic


Instead, if you want to go big with Facebook Applications, you need to define your goal and reverse engineer the process.

I think $100,000 per month is a decent benchmark. (as a starting point)

With an average of 100,000 daily active users that's an average revenue per user (ARPU) of $1 per user per month.

Which is going to be hard to achieve if you're using "traditional monetization" routes like CPM (pay per 1,000 impressions) or CPC/CTR (pay per click) methods like most applications are doing.

Some of Jason's findings:

Continue reading this article.

About the Author:
Andrew Wee is an Asia-based Internet Marketer focused on blogging, social traffic generation and affiliate marketing. Previously rated as one of Asia's top technology journalists, Andrew covers breaking news and industry developments at WhoIsAndrewWee.com

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