Facebook Monetization: A quick interview at the end of Community Next Facebook Conference
Reporter Jason Preston from Web Community Forum got into application monetization with Rodney Rumford after Community Next on Saturday evening:
I will also be speaking at the Web Community Forum in Seattle in December.
Technorati Tags: Facebook, facebook Monetization
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Rodney-
HOW ARE APPS MAKING MONEY?
I was wondering if you could clear some things up for me regarding monetization. I have been researching the topic for some time, and still feel a bit confused as to how applications hope to make money. So far I have gathered:
-Advertising revenue (adwords,etc.), with the extremely low cpm’s, will not provide any real revenue stream. Will this always be the case? Why?
- The “in-app” ad networks (lookery, etc) will allow you to cross promote your application, or you can promote other apps for profit. This requires you to have a large userbase in order to create real revenue, correct? What kind of money can be made here?
-Subscription-style add-ons: charge a small fee for virtual goods (like $1 gifts idea), or a small fee/subscription to use enhanced features of the application
-Sell products or services (from an existing business) to your users. (facebook lets you keep 100% transaction revenue, at least for now)
-Sponsorship (again with a large amount of users)