What Facebook Platform Means to Web Startups David Zhuang Mass Distribution

#1 Problem for Web Entrepreneurs Web Startup: Easy to Build Cheap/Available Technology: LAMP Small Team Low Capital Requirement Big Market Challenge: Distribution Facebook Platform: Solution?

Web Startup: Easy to Build

Cheap/Available Technology: LAMP

Small Team

Low Capital Requirement

Big Market

Challenge: Distribution

Facebook Platform: Solution?

What Is Facebook Platform? API that “enables outside web developers to inject features and content into the Facebook environment” M -- Marc Andreessen

Application Example: iLike Left Nav

Application on Profile Left Nav News Feed Profile Box

News Feed on Home Page Left Nav News Feed

Official Statements by Facebook Deep Integration Access Same Technology Facebook Team Uses Embed Your Application Into Facebook Generate News Feeds to Friends (Viral Distribution) Access Profile, Friends, Groups, Events, Photo, etc. Mass Distribution 50 Million Facebook Users by 2007 (Projected) Heavy Traffic due to Social Graph New Opportunity Freedom to Monetize The Way You Want

Deep Integration

Access Same Technology Facebook Team Uses

Embed Your Application Into Facebook

Generate News Feeds to Friends (Viral Distribution)

Access Profile, Friends, Groups, Events, Photo, etc.

Mass Distribution

50 Million Facebook Users by 2007 (Projected)

Heavy Traffic due to Social Graph

New Opportunity

Freedom to Monetize The Way You Want

Analysis by Marc Andreessen Sophisticated Platform Full suite of well-defined APIs Highly Viral Distribution Engine User notified when friend starts using an application Freedom to Monetize Conclusion: This is an amazing achievement -- one of the most significant milestones in the technology industry in this decade.

Sophisticated Platform

Full suite of well-defined APIs

Highly Viral Distribution Engine

User notified when friend starts using an application

Freedom to Monetize

Conclusion: This is an amazing achievement -- one of the most significant milestones in the technology industry in this decade.

Success Kills (Your Servers) Case: iLike 50,000 users in 20 hours 3 million users in 2 weeks Emailed everybody for servers From 2 to 100’s of servers Solution Idea: Amazon EC2? Not that easy

Case: iLike

50,000 users in 20 hours

3 million users in 2 weeks

Emailed everybody for servers

From 2 to 100’s of servers

Solution Idea: Amazon EC2?

Not that easy

Top Applications Flixter 2,499,478 Movies Nikil Gandhy 2,499,031 SuperPoke! Ted Suzman 3,093,044 Graffiti Jia Shen 3,108,828 X Me RockYou! 3,347,586 Horoscopes R. Tyler Ballance 3,537,925 Fortune Cookie iLike, Inc. 3,735,066 iLike Slide, Inc. 6,050,916 Top Friends Developer User Number Name

Top Applications (Continued) RockYou! 1,091,037 SlideShows HOTorNOT.com 1,013,383 HOT or NOT D. Pakhamimov 1,149,808 Favorite Peeps! Kun Gao 1,392,061 Moods Dan Peguine 1,441,793 Honesty Box Facebook 1,875,256 Video Facebook 1,924,573 Mobile Zachary Allia 2,136,925 Free Gifts Developer User Number Name

New Competitive Dynamics 100’s of Applications Today, 1000’s Soon? New Apps Keep Coming The Magic Number 7 Human Cognition Limit: 5 – 9 Items 3 – 5 External Applications per User? Will Your App Be the “Flash of the Pan”? No More User Lock-in for You

100’s of Applications Today, 1000’s Soon?

New Apps Keep Coming

The Magic Number 7

Human Cognition Limit: 5 – 9 Items

3 – 5 External Applications per User?

Will Your App Be the “Flash of the Pan”?

No More User Lock-in for You

Top Categories (Listed) 126 Gaming 56 Alerts 61 Video 63 Photo 74 Messaging 126 Utility 394 Just for Fun 945 All Number of Applications Category

How Embedded Application Works Your Application Is a Web Service NOT Redirect Users to Your Site Your Server/Bandwidth You Need: Monetization Strategy

Your Application Is a Web Service

NOT Redirect Users to Your Site

Your Server/Bandwidth

You Need: Monetization Strategy

Summary Facebook Platform can be a good distribution channel for your application Startups can focus on creating great applications/services Competition is abundant Currently, “fun” applications most popular Product differentiation is key

Facebook Platform can be a good distribution channel for your application

Startups can focus on creating great applications/services

Competition is abundant

Currently, “fun” applications most popular

Product differentiation is key

Discussion Questions What types of applications can we build for Facebook? Do “useful” applications have a place (vs. “just for fun” applications)? How to overcome competition from other Facebook applications? Platform for MySpace? LinkedIn? Is Facebook the Next Web? Web 3?

What types of applications can we build for Facebook?

Do “useful” applications have a place (vs. “just for fun” applications)?

How to overcome competition from other Facebook applications?

Platform for MySpace? LinkedIn?

Is Facebook the Next Web? Web 3?

Contact Info David Zhuang [email_address]