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Posts Tagged ‘Social Networks’

Startup Statistics from Bizak

September 26, 2008 1 comment

Bizak allows entrepreneurs to categorize and search for startups according to industry, business type and revenue source.  As of September 26, 2008, Internet industry startups utilizing social networking tools with in house advertising is the most popular type of startup.  

The stickies below outline the most popular types of startups in their respective categories.  Google Adsense still remains very popular at 20% of all revenue models, even though I feel that it has become worthless.  My preference has always been a subscription model in one form or another – Bizak and infoMedMD both integrate a subscription model with corporate services.  Deciding whether to offer services for Free or Not Free are usually the deciding factors between a subscription or advertising model and whether you’re targeting consumers or corporations.  Generally speaking, consumers want your product for free whereas corporations are willing to pay for value added services and/or data. 

Top Startup Industries on Bizak:  Internet (35%), Arts & Entertainment (9%), Computers & Electronics (8%), Business (4%), Politics & Media (4%) and Retail (4%).

Top Website Types on Bizak:  Social Networking (16%), Ecommerce (14%), Consulting Services (11%), Content (9%), Blogs (9%), Video (6%), and Business Networking (6%).

Top Revenue Sources on Bizak:  In-House Advertising (22%), Google Adsense (20%), Product Sales (20%), Consulting Fees (17%), and Subscriptions (11%).  Back in May I also highlighted the top revenue sources on Bizak and it’s good to see with more data that Google Adsense has decreased significantly while product sales have increased.  Based on our statistics in May 2008 (a month after launch) Google Adsense was at 39%, Product sales at 14% and In-House Advertising was 12%.  Subscriptions and Services have remained relatively constant at 11% and still less then 1% use Microsoft Search Advertising and Yahoo Search Marketing for revenues.

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Social Networks Worth

In a number of previous posts (below) I’ve used the Bizak Calculator to compute the revenue valuations of social networks and internet companies. These valuations put heavy emphasis on current revenues but it also gives credit for positive earnings per visitor (EPV).

Techcrunch recently compiled a very interesting (but at times very confusing) model on valuing social networks. The Techcrunch model values social networks according to the countries where individuals are using that application. They then use those numbers in conjunction with the internet advertising spending for each individual country to compute the value of social networks. Techcrunch can explain their math much better then me so read the Techcrunch article and compare them to the Bizak valuation of:

Other articles that focus on social networks include:

Articles focusing on Startups:

Myspace Revenues & Valuation Compared to Facebook

June 23, 2008 3 comments

Myspace RevenuesFacebook recently overtook the number one worldwide visitors title from Myspace but Rupert Murdoch & News Corp. are probably not concerned. In July 2005 News Corp. purchased Myspace for $580 million. This year Myspace is expected to generate 2008 revenues of $800 million. In comparison Facebook revenues for 2008 are expected to be $350 million.

Without costs that $800 million for Facebook equates to a $3.2 billion dollar valuation (source: Bizak’s business valuation) for Myspace. It turns out that Rupert made another very smart investment.

If you use the same costs figures for Myspace that I used for Facebook (approximately $26 million/year or $2,166,666.00/month) then we can get a better comparison.

Revenues: Myspace $800 Million, Facebook $350 Million

Earnings per Visitor: Myspace $1.08, Facebook $0.84*

*Facebook’s EPV is based on 32 million visitors. Change Facebook’s visitors to equal Myspace (60 million) and their EPV drops to $0.45

Valuation: Myspace $3.174 Billion, Facebook $1.374 Billion

Winner: Myspace & Rupert Murdoch

Visually Myspace is still very sloppy but they’re getting better – just in time for Rupert to sell Myspace for a huge profit.  Maybe experience does help when running a company??!!

Social Networks

To no surprise social networks are very popular on Bizak and currently make up 18% of all business types submitted.  Include business networks and that number becomes 24% for all networking sites.

Of the social networks currently on Bizak (excluding those beyond the standard deviation) their monthly averages are the following:

Monthly Benchmarks for Social Networks

  • Visitors 128,830
  • Revenues $11,707.69
  • RPV $0.23
  • Costs $5,139.62
  • CPV $0.21
  • Earnings $6,568.08
  • EPV $0.01
  • Bizak Estimate $500,293.85

Content sites are the most popular business types on Bizak making up 21% of all websites.  The most interesting comparison between content sites and social networks comes in the costs field.  Content sites have a CPV (Costs per Visitor) of just $0.05 compared to the $0.21 for social networks.  RPVs (Revenues per Visitors) are significanly lower for content sites ($0.07 vs. $0.23) but due to lower costs earnings are relatively equal with an EPV of $0.02.

Source:  www.Bizak.com

Internet Startup Comparison Charts & Benchmarks

April 30, 2008 Leave a comment

Comparison Charts

Bizak launched its beta site on Tuesday April 29, 2008.

Bizak is currently in beta allowing startups to contribute their projects for computing profitability.  Once enough data has been aggregated then the comparative benchmarks will be available to both startups and investors.

Startups Registration

http://www.bizak.com/startups/register

Top Social Networks According to Traffic

March 12, 2008 Leave a comment

Top Social Networking Sites

Compete.com has a great post on the top social networking sites (according to traffic) for the month of February 2008.  I find the statistics to be fascinating and quite enlightening since some of these sites I’ve never heard of – for example CafeMom.com.  What I find fascinating is that Myspace is still very comfortable in the number one position.  I’m fascinated by this since I rarely hear anyone talk about Myspace (it’s always Facebook, Facebook, Facebook) and it’s such crap.  It is however a great tool for musicians (that’s good) and spammers (not so good).  Myspace has however seen negative year over year growth in comparison to Facebook’s 77%, so I would expect their top position to eventually be history.  My guess is that they’ll eventually drop out of the top ten and I assume they thought that too since Myspace has been cleaning up their site a lot these days – looking more and more like Facebook.  LinkedIn is also looking more and more like Facebook minus all the spam of Myspace and to a lesser extent Facebook.  LinkedIn is boring though.

I’m surprised to see that Classmates.com is still relevant!  I never use them but you have to give them props for being a top social network for over 13 years!!