Getting Investment Capital for Your Social Media Application

This information comes from a panel I attended at Social Media School. For your benefit, I have captured the key points. Enjoy!

The Math

When measuring revenue potentials you will need the following formulas:

Revenue Per Page View (RPPV) * # of Pages = Revenue

Revenue Per Thousand (RPM) = Revenue / Impressions = Cost Post Thousand (eCPM)

# Ads Per Page * Impressions Per Ad * RPM = RPPV

Growth Opportunities

• Social analytics
• Leveraging existing social Networks with Applications
• Natural language search (semantics)

Sweet Spots for Investors (The Panelists)

• Owners taking little to no money
• Functioning beta
• Existing customer base
• Potential for rapid adoption
• Existing large market
• Low overhead
• Not capital intensive
• Serious “skin in the game”
• Momentum in the market
• Revenue already being generated
• Learn from mistakes, such as being wasteful with resources
• Referrals help to get in the door
• Have focus on one thing, be prepared to focus 100% on the idea you are pitching