Getting Investment Capital for Your Social Media Application

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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