Facebook App Financials Ariel Poler April 3, 2008

Revenue Scenarios Large Lightweight Small Very Engaging Medium Very Engaging Medium Targeted cpm $ 0.50 $ 1.00 $ 1.00 $ 5.00 daily actives 750,000 25,000 100,000 100,000 pages per visit 3 25 25 10 pageviews 2,250,000 625,000 2,500,000 1,000,000 daily revenue $ 1,125 $ 625 $ 2,500 $ 5,000 annual revenue $ 400,500 $ 222,500 $ 890,000 $ 1,780,000

Increasing Revenue Large enough audience Hundreds of thousands to millions Large enough inventory Targeted & attractive audience Dedicated sales team? Hard to find & expensive…

Large enough audience

Hundreds of thousands to millions

Large enough inventory

Targeted & attractive audience

Dedicated sales team?

Hard to find & expensive…

Costs? Hosting scales with traffic. There could be some initial set-up costs, depending on approach Hiring? Estimate $10/pax/year. Legal? A few thousand dollars up front. Should remain minimal You can keep costs very minimal until you get traction. But your app must be intrinsically viral.

Hosting scales with traffic. There could be some initial set-up costs, depending on approach

Hiring? Estimate $10/pax/year.

Legal? A few thousand dollars up front. Should remain minimal

You can keep costs very minimal until you get traction. But your app must be intrinsically viral.

Planning for the end game Side Project? 1-2 people generating $10K to $100K per year. Lifestyle? 1-2 people generating $100K to $500K per year. Moderate exit? 3-10 people generating $500K+ per year and/or building a valuable and desirable asset. Big exit? Must ramp to tens of millions in sales per year and/or build something truly unique and valuable.

Side Project? 1-2 people generating $10K to $100K per year.

Lifestyle? 1-2 people generating $100K to $500K per year.

Moderate exit? 3-10 people generating $500K+ per year and/or building a valuable and desirable asset.

Big exit? Must ramp to tens of millions in sales per year and/or build something truly unique and valuable.

Financing Options Bootstrapped. Always a good approach… Friends & Family. Those who believe in you… Angel Investors & VCs. Have traction and need growth capital & advice Have a track record Have a killer idea and plan to execute on it

Bootstrapped. Always a good approach…

Friends & Family. Those who believe in you…

Angel Investors & VCs.

Have traction and need growth capital & advice

Have a track record

Have a killer idea and plan to execute on it