This information comes from a panel I attended at Social Media School. For your benefit, I have captured the key points. Enjoy!
The Math
When measuring revenue potentials you will need the following formulas:
Revenue Per Page View (RPPV) * # of Pages = Revenue
Revenue Per Thousand (RPM) = Revenue / Impressions = Cost Post Thousand (eCPM)
# Ads Per Page * Impressions Per Ad * RPM = RPPV
Growth Opportunities
- Social analytics
- Leveraging existing social Networks with Applications
- Natural language search (semantics)
Sweet Spots for Investors (The Panelists)
- Owners taking little to no money
- Functioning beta
- Existing customer base
- Potential for rapid adoption
- Existing large market
- Low overhead
- Not capital intensive
- Serious “skin in the game”
- Momentum in the market
- Revenue already being generated
- Learn from mistakes, such as being wasteful with resources
- Referrals help to get in the door
- Have focus on one thing, be prepared to focus 100% on the idea you are pitching
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