How to Get In On the $41 Billion Facebook Empire
by Alexander Moschina, Investment U Research
Monday, December 20, 2010
Without question, Facebook is one of the biggest stories of the last decade. Its founder and CEO, Mark Zuckerberg, was just named Time Magazine's "Person of the Year" for 2010. Yet only he and a few people got rich off the $41 billion social networking site.
Until now, that is.
No, the company isn't going public. Even if it did, its IPO would be astronomical. But there is a way to cash in on Facebook's massive success. For roughly $1 per share...
Facebook news site AllFacebook.com recently launched a new subscription-based service - the AllFacebook Services Directory. It's an online marketplace, where businesses can advertise Facebook-related marketing, software and other services.
The site already attracts more than a million unique visitors per month. And the tiny company behind it has a market cap of $26.7 million. News of the launch sent its shares soaring more than 50%. But it's just a preview of things to come...
Facebook Ad Revenue Set to Blast Past AOL
When it comes to monetizing the web, New York City's WebMediaBrands (Nasdaq: WEBM) has been at the forefront for over a decade. It manages a network of professional blogs, career sites and newsletters.
But today, the company has its sights on Facebook. Particularly the $800 million in ad revenue it raked in last year...
Analysts predict that Facebook will soon reach $1.4 billion in recurring ad revenue, crushing web veterans like AOL (NYSE: AOL). And as Facebook's strength as an ad medium grows, so too will demand for WebMediaBrands' new service...
WebMediaBrands Gets In on the Ground Floor of a Rapidly-Growing Market
Now that the social networking site has reached 500 million users, it's attracting some major brands. But did you know that more than half of its ad revenue still comes from small businesses? And the common denominator here is that they need help marketing in the new adspace...
That’s where online ad firms come in. They make a living advertising on social media sites. Unfortunately, though, potential clients have a hard time finding them on the open web.
But WebMediaBrands is helping itself to a big piece of the industry pie. It's AllFacebook Service Directory is like the Yellow Pages for Facebook advertising. A monthly subscription fee ensures that the businesses listed are legitimate. And for WebMediaBrands, this creates a significant repeat revenue stream. Not to mention it gains access to a young market currently worth more than $400 million...
The directory is a game-changer for the company and the service's success will likely lead to others like it. Its site SocialTimes.com could easily host a directory for companies that market on Twitter, YouTube and other sites.
Over the coming years, WebMediaBrands will continue to unlock the web's profit potential. And as social networking evolves, the company will expand its business as it creates even more revenue streams.