Facebook application froth continues
Posted on October 6th, 2007 by Startup Addict
I love the Internet and how quickly froth is created in new web 2.0 properties. I define froth as speculative investments and over-valuation on web properties. Froth is the proverbial gold rush or road to riches in search of the holy grail of acquisition. Froth is industry agnostic as well, take the Real Estate industry in localized markets through the United States for example, still reeling (like many web 1.0 companies) from too much froth and over zealous investments. It’s human nature to create froth and it is one of the more exciting business topics to track. Facebook continues to be the hot web property of choice at the moment that not only creates excessive froth but all the subcultures that are utilizing the social network.
One facebook web application worth a mention is Texas Hold’em Poker which according to paidContenthas 158,018 users. That would place each registered user (from an acquisition standpoint) worth $12.66. Remember an earlier posting that Facebook itself at a $15 billion valuation would put an acquisition cost of $375 a user. According to The New York times article that paidContent references Altura Ventures has launched a $25 million facebook-only fund for apps that are generating buzz and hopefully revenue. I compare these figures with what I’m willing to spend to acquire new customers for StartupAddict.com and I’m around $1.33 for user acquisition…..plenty of room for froth if SA ever picks up steam and hits critical mass. News Corp is still my hero for picking up Myspace at around $12 bucks a user.
One facebook web application worth a mention is Texas Hold’em Poker which according to paidContenthas 158,018 users. That would place each registered user (from an acquisition standpoint) worth $12.66. Remember an earlier posting that Facebook itself at a $15 billion valuation would put an acquisition cost of $375 a user. According to The New York times article that paidContent references Altura Ventures has launched a $25 million facebook-only fund for apps that are generating buzz and hopefully revenue. I compare these figures with what I’m willing to spend to acquire new customers for StartupAddict.com and I’m around $1.33 for user acquisition…..plenty of room for froth if SA ever picks up steam and hits critical mass. News Corp is still my hero for picking up Myspace at around $12 bucks a user.
