The alternative to advertising by Jonas

The revenue mix defines the service DNA. We even came up with a new metric: ARFU for “Average Revenue From Users” (rather than per user, for ARPU). With this in mind, ARFU for Facebook is almost zero, while ARFU for QQ is 87% Internet + mobile combined.
- Benjamin Joffe

Yet another evidence that there are lots of other revenue sources than advertising, especially regarding social networks and communities. It’s so often advertising creates a worse user experience and hence decrease the value of the service. Asian social networks seems to have understood this and have found revenue in digital goods instead of traditional ad sales.

(via RWW)

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March 30, 2008 / Comments.

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