Facebook does not even makes minimum wage!

When I read the article on Mashable about Facebooks revenue, I thought the company is growing really well. However, after just one minute my mind started to wonder if this is really true. 

I know Facebook is just building a business, and I know they started ramping advertising up just recently, and I know revenue is not their primary focus. But come on, $500 million? To put the big numbers a little bid more into perspective, just break it down a little…

If Facebook is making $500 million this year in revenue, this will mean…

  • Facebook is making $41.67 million per months
  • Facebook is making $9.59 million per week
  • Facebook is making $1.37 million per day
  • Facebook is making $57 K per hour
  • Facebook is making $951 per minute
  • Facebook is making $15.85 per second

That sounds pretty good. However, if you look at the revenue per active registered user, it sounds pathetic.

If Facebook is making $500 million this year on a user base of 225 million active users, this will mean…

  • Facebook is making $2.22 per year per user
  • Facebook is making $0.18 per months per user
  • Facebook is making $0.04 per week per user
  • Facebook is making $0.006 per day per user
  • Facebook is making $0.00025 per hour per user
  • Facebook is making $0.000004 per minute per user
  • Facebook is making $0.00000007 per second per user
  •  

    Facebook is making less per user in a year than minimum wage per hour!

    There are practically two ways Facebook can increase revenue:

    1. Get more bodies into the door. More active users will generate more page views, more ad inventory to sell.
    2. Get more revenue per ad sold. Higher ad prices will raise the revenue per active user.

    To bring Facebook up to minimum wage standards, keeping the number of active users constant, the revenue would have to grow from $500,000,000 per year, to $15,768,000,000,000*!!! How would you say this..? 15 trillion 768 billion dollar?

    I’m confident Facebook is growing fast and will generate tons of revenue in a couple of years. I just wonder how fast they will show improvements in this field. But in the mean time, let’s put these numbers into perspective!

    * The calculation against minimum wage is not completely fair, as a person only works for 8-10 hours a day, where the calculation here is based on working days of 24 hours, 7 days a week, 365 days a year. It’s flawed, but still it gives a perspective on current revenue and the need to grow bigger, faster!

    No more garbage ads?

    I hope these garbage ads I recently wrote about will be history once and for all. It seems the FTC’s Bureau of Consumer Protection is going after the Government grant scammers who widely advertise on both Google Adsense network, and through Facebook Ads.

    I recommend to everybody not to fall for these get rich quick scams. If it sounds too good to be true, it usually is too good to be true. And it in the process you might burn yourself pretty bad!

    CNet reports: Facebook, Google helping feds stop online stimulus scams

    Scammers have created sites with domains like PresidentObamaGrants.com and OfficialStimulusGrants.com, Harrington said, and include pictures of President Obama and Vice President Biden. The sites prompt consumers to enter a credit card number to pay a small fee in return for a list of grants supposedly available for things like mortgage payments. Those small fees, however, are often nothing more than a down payment on a "negative option" agreement that could cost someone thousands of dollars over the course of a year if not canceled.

    Hopefully we won’t see these ads anymore, although I’ sure the scammers will find another way to pull people into their shady tactics.

    Facebook Ranks #3 for Barack Obama

    Pretty good job for Facebook SEO team. They currently are ranking #3 for Barack Obama. (if you take the News Universal Search results not into account).

    facebook ranks #3 for Barack Obama

    Facebook is even ranking higher than the Whitehouse.gov page, displayed in highlighted red here.

    It was brought to my attention when I saw this Tweet:

    image

    Obviously, with all the people who became a supporter of Barack Obama, are linking with their Facebook profile to this page. This means the page already has more than 5.5 million internal back links.

    Now ad all the external press links and bloggers that link to the page, and you have a super SEO ranking machine...

    Facebook pulls new T&C’s

    After all the comments over the long weekend and today, Facebook returned to their old Terms and Conditions. Tonight I got this message from my friend Alex:

    Check the top of your newsfeed and trust me we learn from our mistakes.

    And at the top of my Newsfeed there was an extra message:

    A couple of weeks ago, we posted an update to our Terms of Use that we hoped would clarify some parts of it for our users. Over the past couple of days, we have received a lot of questions and comments about these updated terms and what they mean for people and their information. Because of the feedback we received, we have decided to return to our previous Terms of Use while we resolve the issues that people have raised. For more information, visit the Facebook Blog.

    At first the change in T&C's made me delete all my pictures and tags from Facebook. Just think about it, you give up all the rights, even if you deleted your profile and account. What made me decide to take action. The following text was taken from the new, now old, T&C's:

    You hereby grant Facebook an irrevocable, perpetual, non-exclusive, transferable, fully paid, worldwide license (with the right to sublicense) to (a) use, copy, publish, stream, store, retain, publicly perform or display, transmit, scan, reformat, modify, edit, frame, translate, excerpt, adapt, create derivative works and distribute (through multiple tiers), any User Content you (i) Post on or in connection with the Facebook Service or the promotion thereof subject only to your privacy settings or (ii) enable a user to Post, including by offering a Share Link on your website and (b) to use your name, likeness and image for any purpose, including commercial or advertising, each of (a) and (b) on or in connection with the Facebook Service or the promotion thereof. You represent and warrant that you have all rights and permissions to grant the foregoing licenses.

    More details and discussion on Photoattorney

    This is not the first time Facebook gets into trouble with the way they handle their users' data. Beacon opened up a big can of worms too!

    image

    Picture from Flickr: Can of Worms under Creative commons

    Get Rich Quick with Facebook Ads

    OMG, Oh My F*** God, what is up with these Ads on Facebook. The only Ads you see are from Get Rich Quick Scams. And the worst part of it all, the Ads all link to the same kind of websites, of which the majority even use the same template and even the same pictures of the hero that is going to teach you how you can be rich within no-time!

    Here is a small selection of the ads, there are plenty more examples:

    $100/Hour Part Time Job

    $100-Hour-part-time-jobLinks to: I'm Mike! This is my blog. This is my story about how after losing my job in November, I did some research online about making money with Google. If you would have told me that for $1.95 I'd receive a software kit and instructions on how to make money online, and that in my first month I'd clear more than $6390, I would have called you an idiot! Now I'm calling myself one for not getting this kit shipped out sooner!!!!

    Get Google's Profits

    And his check:

    image

    Make up to $563 per day

    Make-Up-To-$563-per-day

    Which links to: My name is Jason Miller. Married 3 years to Audrey. I lost my job as a boring sales rep for a logistics company a few months back. But here is my story on how I got $13,000 financial aid from the government in 30 days and actually make the $5,000+ a month submitting small texts and ads online. Read my story to learn how I did it.

    Jason Makes Money

    2009 Wealthy Year For You

    imageWhich links to:  Dear Visitors, I know you are probably sick and tired of all the get rich quick schemes on the internet. Today, you are about to witness something completely different... HONESTY.

    Let me introduce myself, my name is Jason and I have now been working on the internet for 5 years straight. I LOVE my job!
    For those past 5 years

    I have always led a very comfortable life
    I have always spent lots of quality time with my family
    I have always loved what I did for work.
    I have always had time to do what i wanted to do with my time.
    I have always put my family first before work.
    I have always tried helping my friends copy my success.

    Make Money in your PJ's

    Girl in Each Arm

    Girl-in-each-armWhich links to:  My name is Dave Williams from San Francisco , CA. Married 3 years to Audrey. I lost my job as a boring account rep for a manufacturing company a few months back. But here is my story on how I make $5,000+ a month by just submitting small texts and ads online on Google. Read my story to learn how I did it and how you can do the same.

    Get Easy Cash With Google

    I Make More Than You

    I-Make-More-Than-You Which links to: My name is Kevin Hoeffer. Married 3 years to Audrey and We have 3 amazing kids. I lost my job as a boring account rep for a manufacturing company a few months back. But here is my story on how I make $5,000+ a month by just submitting small texts and ads online on Google. Read my story to learn how I did it and how you can do the same.

    Flipside Invest

    $75 /Hr Part-Time Job

    imageWhich links to: My name is Kevin Hoeffer. Married 3 years to Audrey. I lost my job as a boring account rep for a manufacturing company a few months back. But here is my story on how I make $5,000+ a month by just submitting small texts and ads online on Google. Read my story to learn how I did it and how you can do the same. 

    Sounds familiar, doesn't it? Just check this out:

    Kevin Got his Green

    Make Money With Google 

    Make-Money-with-Google

    Which links to: My name is Dustin. Recently married. I lost my job as a boring account rep for a manufacturing company a few months back. But here is my story on how I make $5,000+ a month by just submitting small text and ads online on Google. Read my story to learn how I did it and how you can do the same.

    OMG can it get even more boring! Can you spell copy paste..?

    Dustin's Dollars

    These are all the same ads as the one featured yesterday on my blog; Free Money From Obama, using Google Adsense, and the one below here:

    How I reduced my Debt

    How-I-reduced-my-debt

    Which links to: My name is Tom Donahue, and I am from San Francisco, CA. I started this blog because I want everyone to know how I went from being broke to completely paying off my debt in 30 days by spending a few minutes filling out a form online that qualified me for a Free $12,000 Financial Aid Check from the US Government.

    Get Your Government Grant

    And this site is using the same person as our hero to make us rich:

    image

    And we can go on and on with these ads. There is just no stopping here. They even target women:

    Negotiate Your Debt

    Negotiate-your-debtWhich links to the only Woman profile I could find so far: Hey everyone! My name is Kelly and I'm a mother of two who has struggled for many years with over $20,000 in debt. I made this blog to share with everyone my story of how I was able to pay off my debt and start earning more money for my family. By following the 3 easy steps on my site, you too can do the same and make your way to financial freedom! 

    How I Erased $24,634 Of Debt And Made My Way To Financial Freedom

    Hello Everyone! My name is Kelly, and I live in San Francisco, CA.I am a proud mother of 2 who's been married for 9 years to my wonderful husband, and this is my 'get-out-of-debt' blog!

    Debt Free Kelly

    Just amazing isn't it, all these people seem to live in San Francisco, and making tons of cash. No wonder the rental prices in San Francisco have not come down yet! I must be doing something wrong with my strategy to make money. These folks get cash rolling in just as easy as water falls down from the sky when it rains.

    I wonder if we get Mark Zuckerberg talking about the cesspool in a couple of years just like Eric Schmidt did about how Brands can help clean up the cesspool they themselves helped creating with the simple way of earning money with Google Adsense. in AdAge:

    The internet is fast becoming a "cesspool" where false information thrives

    Facebook Ads, Not Successful

    At least not for me...

    As I have been writing to go try to score some extra cash with Facebook Ads, I have to report back that I miserably failed! Although Shoemoney is making money with Facebook Ads, this does not mean everybody can do it! As I don't have the time to invest more in the optimization of my campaigns, I leave the money making on Facebook Ad system to the Pro's and much more experienced affiliate superstars.

    I had two main campaigns targeted at The Netherlands. Although one ex-colleague who now works at Facebook already said it was not worth it, as Hyves is too dominant locally, I still wanted to try it out on a small scale.

    Valentines Day

    With Valentines Day coming up, I thought it would be a brilliant move to score some affiliate cash with flower services. Can you imagine the service you deliver, helping all those men on Facebook to remember they actually make sure to order flowers!

    Below are my results:

    Facebook-Ads-Valentines-Day

    San Francisco

    And for my San Francisco Tips site, in Dutch, I tried just two possible ads with some targeting. As I know from previous years, January to April is the season for the Dutch to research, plan and book their summer holiday trip. As the Euro is still strong against the Dollar, and airline tickets are getting cheaper, I thought it was a good plan to try to send some extra traffic to this site.

    Below are the results:

    image

    To bad that I did not get any conversion out of the 51 clicks of my Valentines Day campaign.

    Facebook Ads the Way to Make Money?

    I still believe if you put a lot of time and effort in your campaigns, you will be able to make some money with the Facebook Ad platform. The targeting capabilities are amazing, and you can pretty much narrow your audience down to local ad campaigns.

    Next to that, the people behind the platform (Alex), and the people who are using it successfully (Shoemoney) are smart enough to know what they are talking about. I fully trust that Facebook will be able to build out the next Adsense in the coming years. If only the advertisement spending is keeping up, to fund the growth in the network and in Facebook the company.

    I simply have other priorities right now!

    Are You a Fan of Masturbation on Facebook?

    Yesterday Facebook announced the ALLFacebook Pages Tracker, with which you can track which pages are most popular. From their post on AllFacebook:

    Want to know what the most popular Facebook pages are on any given day? Now you can! If you haven?t read it on Techcrunch, over the past month we have been tracking over 620,000 Facebook fan pages daily to determine how many fans they have and what type of growth they are experiencing. This is to improve our ability to track what?s popular on Facebook.

    A great tool, especially for Marketeers. Now you can not only look at what kind of audience is present and active on Facebook, but also spy on your competitors social media strategy fairly easily.

    But what was more interesting form the post about this Pages Tracker tool, is the popularity of the fan page on Facebook on.... Masturbation. WTF! Is this a PR stunt from Facebook. Do we call out LinkBait here? Why the hell would somebody ever want to become a fan of the Masturbation page. This would be a clear CLM for the future (CLM = Career Limiting Move).

    Masturbation! continues to be a fast growing fan page, currently growing at around 68 percent a day. Be careful though, as that fan page is definitely not safe for work.

    The link might be NSFW!, I didn't check, so if you are at work, and don't want people to start looking at you with a strange face, don't click!

    image

    Don't these people know better. Every recruiter these days checks at least 4-5 online sources, of which are: Google, LinkedIn, MySpace and... Facebook. And there you are, in all honesty you proudly say you are a fan of Masturbation.

    So imagine you are half way in your job interview and the conversation takes an ugly turn;

    Interviewer: So what do you do for fun outside of work?

    Candidate: I masturbate! I have a hobby to masturbate in strange places. I see it as a personal objective to masturbate at least once a week at a place I have never masturbated before.

    Interviewer: Would you consider masturbating at work?

    Candidate: Oh yes, that's most exciting. But then again, I almost had all possible scenario's already in the jobs I had before this.

    Interviewer: Ahum.. That's very interesting...

    Candidate: No really, I don't see it as a problem to talk about masturbation. Everybody masturbates, don't we? Tell me, do you?

    Interviewer: Hmmm, I don't think I would like to go into this....

    Candidate: Ow come on... Tell me when was the first time you masturbated...?

    At this point, you know for sure you won't get the job,unless you are applying for a job in an exotic working environment.

    When are people going to realize that what you do on online is for all to see, especially on high profile social network sites. Your actions can have big effects on how people perceive you. The first impression on your persona has already been made based on your web profile. Everywhere you leave your name or set up a profile will contribute to your web footprint.

    Getting control over my footprint has been one of my objectives. Setting up a profile on sites where I don't control or can delete the information is something I stay away from.

    What are the measures you take to control your online footprint?

    Testing The Facebook Ad Platform

    After following my friend and ex-colleague Alex presenting on Facebook Ads on the Affiliate Summit through Twitter, I though I might give the Facebook Ads a try myself. As Alex mentioned, Europe has got some virgin waters laying ready to be explored by smart Internet marketers. Thank god they have not showed up yet, as I can try to learn that Shit comfortably without being priced out of the market.

    Signing up for the Facebook Ad program is a breeze,  easy & fast. The only problem; in The Netherlands Facebook is a far second or even third when it comes to social networks. A Local player called Hyves has got around 70% of the Internet population signed up and hooked to the drugs that is called Hyves (read here all about Hyves in Businessweek).

    With Valentines day coming up, I thought I should do something around this in my Ad. Flowers always are being bought by men at the latest moment just to make the GF/wife happy enough that they get lucky.

    I'm targeting men age 22 and older who are interested in women and are single, in a relationship, engaged, or married in the Netherlands who like Flowers or Valentine.

    image

    Unfortunately, with the ad targeting I set up, the group that I'm targeting is fewer than 20 people.

    image

    I have to say, the Facebook platform is pretty slick when it comes to reports, and I can see the hand and thinking of Alex in the decisions that have been made . He is an all star Affiliate champion, and very smart guy!

    The report can be segmented by:

    • Advertising performance
    • Responder demographics
    • responder profile

    With a summary on campaign or Ad level.

    Unfortunately I'm still waiting for my first click. I just had 6 impressions, so I cannot really say anything about the success of the Ad platform. Even on another Ad that I set up around travel to San Francisco, I had 800 impressions but no clicks. I guess I will have to beef up that Ad with a picture.

    All in all, an interesting learning experience on the Facebook Ad platform. I hope they will grow their network in The Netherlands, so that I can test more on there.