Tuesday, December 11, 2012

Facebook Rolls Out Gifts (And Wine) From Beta To All US Users. Here’s How Much Money It Could Make

Here is the full story

Now it’s time to see if Facebook Gifts will be a nice supplement to the company’s revenue, or a core chunk of it. Today after two months of testing with tens of millions of people, Facebook is rolling out Gifts to all US users. It’s also launching a wine category, plus adding a Hurricane Sandy benefit and the Robin Hood foundation to the charities you can gift to. Let’s look at Gift’s earning potential.
Facebook has roughly 170 million users in the US, based on SocialBakers data and the company’s latest earnings call. It doesn’t reveal the revenue share between Facebook and its Gifts manufacturers, which is different depending on the Gift. But let’s say Facebook earns either 10%, 15%, or 20% per purchase. Some users will likely buy many Gifts, while many will likely buy none, so we’ll calculate assuming the average user buys one half, one, or two gifts per year. Gifts range in cost from $5 to over  

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