What is the value of a Facebook Like? What is the $$ figure for a Facebook Fan? What is a Twitter Follower worth? What is the value of a Tweet or reTweet?
Last week I bought a coupon for Zumba classes from one of the daily deal sites. I received a 50% discount but there was a catch. 1000 coupons had to be sold before the deal became active. Luckily, next to every deal on offer is a button that connects to Facebook. Click the Facebook “Like” button and all your Facebook friends and family and colleagues will see the special deal too. Within a couple of hours the 1000 coupons were sold out, by customers promoting the deal to other customers. My coupon came through and I will now actually have to go to Zumba classes! Activating social networks to sell your products or services is a brilliant idea – so shall we see what a tweet or Facebook fan is worth to businesses?
Recently, companies started to reveal the dollar value of sales made by customers who see a Facebook friend promoting a product. ChompOn, a daily deals group buying service similar to the one I used to buy Zumba tickets revealed that a Facebook share was worth $14 dollars each to them. That’s incredible. Every time a customer clicks the Like button, telling friends and family of the deal, ChompOn earns $14 in sales commission. But could this work for other companies?
Social conference company EventBrite found that an event, shared with Facebook friends, resulted in $2.52 worth of ticket sales per Facebook member “share”. Eventbrite doesn’t organise the events themselves – anyone can join and put an event online, Eventbrite handles the ticket payments and takes a small fee for the sale of that ticket. So $2.52 per ticket sold is a very nice revenue earner for Eventbrite, and they were able to raise $20 million in funding late last year.
Facebook “likes” also work for organisations such as Just Giving, a social fundraising service. You can create a webpage on their site and share it with friends to raise money for your favourite charity. They discovered that six “likes” are needed for one donation. and that one “like is worth around 8 dollars.
It seems to me that with hard statistics coming out now on the value of Facebook members “liking” products and services online, that we are becoming sales people for companies. Do you think that with our friends and family trusting us more than strangers, what we choose to “like” or not, will have a big impact on companies revenue in the future?
Here’s some statistics for you:
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