Fred Wilson writes:
- Facebook apps sell for the number of users who have installed the app. The price was $0.10 per user last week. Now its $0.25 per user.
- The CPMs that Facebook apps are getting are what you’d expect. Less than $1.
- The churn rate is high. Some apps are down as much as 60% in the past week. 20% weekly churn is pretty typical.
- You can build a Facebook app in an afternoon. Maybe the more complicated ones could take a man week. So let’s just say the cost of building a Facebook app isn’t that high. Certainly less than $10,000.
Fred concludes: “It’s a hyperactive development platform on the web in the middle of a community of 27 million (May comScore numbers) people. “
Susan sez: Is this an example of You can’t afford not to develop logic? I think so! If you are looking to drive traffic back to your site, for example, FB apps may not do the trick. But it is worth the crap shoot of throwing an app into the mix right?
Yes, if you are prepared for the risk. So, there you have it. One more risk vs. reward scenario–just like the rest of what we do every day.