That Facebook – making people rich!

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I read a great article in Advertising Week entitled “App Revenues is Poised to Surpass Facebook Revenue” and bedside the point that everyone is always mentioning that social networks don’t make any money or have a revenue model  – these guys are on the way of making $500 mill for themselves and then a possible  $500MILL for developers?!

“What happens when businesses running on Facebook become bigger than Facebook itself? Wowee .. Facebook surpassed 200 million global users and is “expected to bring a revenue of 500 million” 500 million!!! And then developers make a combined $500 million on the platform.

Zynga the top developer on Facebook “makes much of its revenue from the sale of chips for its Texas HoldEm Poker or weapons for Mafia Wars”. They are expected to make a 100MILLION in sales in 09 – that includes MySpace!!!!!! There are also tons of other developers making millions on the platform. “Lisa Marino, who runs West Coast business development for RockYou, estimates developers will earn $300 million from Facebook this year primarily from three streams: virtual currency, branded sponsorships and ad-network inventory”. Facebook is thinking of changing its model to have developers pay for platform use – smart move but might make some people mad. Ohh well, the free lunch is over.

Lots of other great info in this article. Definitely check out Advertising Age.

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