Mar 30

How is the Price of Social Networking site Determined?

If you have no idea on it, then the following will give you just an idea. Simply, you can think it as follows (just the basics):

  • 1. Take the Number of registered users
  • 2. Only 3 to 10% registered users are usually active (actively participate in the site)
  • 3. Think about the number of registered users growing every day/month/year
  • 4. Also, think about the non-registered visitors every day/month/year
  • 5. For the 3 to 10% of the real/actual visitors, for each visitor calculate $10/year to $20/year of revenue = the value of the social networking site (for one year)
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