Karma could mean billions for Facebook.
Facebook acquired mobile commerce startup, Karma. This acquisition didn't get nearly the attention it deserved.
As Chris Dixon wrote about Facebook's Business Model:
The key question when trying to value Facebook’s stock is: can they find another business model that generates significantly more revenue per user without hurting the user experience? (And can they do that in an increasingly mobile world where display ads have been even less effective.)
If they do that, the company is probably worth a lot more than the expected $100B IPO valuation. If they don’t, it’s probably worth a lot less.
Karma has proven that it can create great e-commerce experiences on mobile devices out of social data, Facebook's acquisition gives them a valuable asset that they can use to unlock social commerce revenue.
While there is obviously still risk in this model, Facebook users have already proven that they are willing to engage in social commerce on the platform. In July of 2009, Facebook facilitated about 1 commerce transaction (virtual goods) per year for every 3 users of their site, making an average of 30 cents for every user who signed up for the site.
If they can mirror and grow that success on a 900 million user audience, it's a massive revenue line for them. Based on some of the historical and industry averages, I put together a spreadsheet that allows you to see how much Facebook Gifts could make in a year based on your own assumptions (make your own assumptions for the yellow numbers, watch the grey numbers change).
Congrats to both the teams at Facebook and Karma, I hope this is a case where the combination is bigger than the sum of it's parts.
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Can sensitive coral reefs survive another human generation?
- Coral reefs may not be able to survive another human decade because of the environmental stress we have placed on them, says author David Wallace-Wells. He posits that without meaningful changes to policies, the trend of them dying out, even in light of recent advances, will continue.
- The World Wildlife Fund says that 60 percent of all vertebrate mammals have died since just 1970. On top of this, recent studies suggest that insect populations may have fallen by as much as 75 percent over the last few decades.
- If it were not for our oceans, the planet would probably be already several degrees warmer than it is today due to the emissions we've expelled into the atmosphere.
Yes, a coup d'état.
- Though we know today that his policies eventually ended the Great Depression, FDR's election was seen as disastrous by some.
- A group of wealthy bankers decided to take things into their own hands; they plotted a coup against FDR, hoping to install a fascist dictator in its stead.
- Ultimately, the coup was brought to light by General Smedley Butler and squashed before it could get off the ground.
Michael Dowling, Northwell Health's CEO, believes we're entering the age of smart medicine.
- The United States health care system has much room for improvement, and big tech may be laying the foundation for those improvements.
- Technological progress in medicine is coming from two fronts: medical technology and information technology.
- As information technology develops, patients will become active participants in their health care, and value-based care may become a reality.
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