Thursday, May 6, 2010

How much is your Facebook page worth? (part 2)

Yesterday I got lost in some math trying to explain my theory about how to value the PR of a Facebook page based on the initial number of fans, number of interactions, number of fans gained (or lost), and the number of wall posts you do during a given period.

It also takes into account 2 different personality types that can be found on the web – mass influencers & normal web users. After all, there are two kinds of people in the world – people who are stupid enough to think there are only two kinds of people, and those who know better.

If you are really keen, you can see the math & links to the research behind the theory here. Be careful though, it hurts my eyes looking at – and I wrote it.

It does not look at ROI in terms of sales, conversions, new customers etc. But tracking on your landing pages, ecommerce page etc should give you those figures.

Anyways, here for you to use, abuse, criticize and break is a little web thingy which you can plug your own numbers into and get a value for the PR generated by your Facebook page over a given time period.

The tool is designed to give you a value over a set period, the more frequently you use it, the more accurate it will be. Keep track of each ensuing week’s value and add them up to give you a value over a longer period of time.

This model will reflect the changes in the value of your Facebook page as you invoke more or less reaction, as you gain or lose followers etc. This makes it a bit more accurate than saying “We have X number of fans so our page is worth X x Y dollars per year.” Some weeks your page will be more effective (and worth more) than other weeks.

You can get all the info required from your Facebook insights page. If you have lost followers, enter a negative number into the box and see what happens.

Please note that this is using a CPM of NZ$6.95 as this is what Facebook charges for an ad on the home page. This is the default figure, but feel free to change it into other currencies or amounts.

What do you think?

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