Facebook & App Developers – Giant Revenue Generators

Computers & TechnologyInternet

  • Author Arnold Smithh
  • Published August 31, 2009
  • Word count 384

Facebook has been endlessly innovating its way through easy user interface, multiple entertaining and news based applications and its resourceful abilities for social networking. Many conclude facebook as a revenue breeding enterprise.

It is no surprise knowing from research reports that foretell facebook’s future to take the greatest toll as the greatest social networking platform in the world. Recent research states that facebook is on its way to make as $ 500 Million in its revenue, this year. However, what is interesting here is to notice how facebook generates the amount of revenues through its eco-system; that includes applications on facebook, virtual goods and tools that are all developed by means of facebook’s F8 platform. An inventive step towards novelty was when facebook allowed and opened gateways for developers outside facebook to create more interesting applications.

Mark Zuckerberg quotes the following in an interview with "TIME" Magazine; "That's a big deal because it means that all developers have a new way of doing business if they choose to take advantage of it. There are whole companies that are forming whose only product is a Facebook Platform application. It's also really exciting to our users because it means that a whole new variety of services are going to be made available."

A very good example could be of Zynga that built "Texas Hold ‘Em" application for facebook. Recently, it has been estimated that the company holds a gigantic potential of making $ 100 Million this year. Another good example could be of another facebook application developer, "Playfish" that is estimated to make $ 30 million this year.

According to an estimate by Eric Eldon, application developers as a whole could possibly generate as much revenues as facebook itself would and perhaps they have the potentials to produce even more revenues than estimated. This means if one can develop applications on a platform that is ever growing such as facebook, you would be able to create substantial revenues for yourself.

However, another ability of facebook eco-system focuses its energy in its payment mechanisms. This is certainly yet another revolutionary step taken by facebook.

There is undeniably a lesson for the competitors of facebook that look for revenue generating opportunities themselves, knowing the potential facebook & the app developers have, being giant revenue generators.


Arnold Smithh is editor of (www.facebookster.com/blog)i have wrote many article for different industries.

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