That’s INSANE. But most of what happens on Wall Street is blind lumbering herds of animals getting roped by mercenary cowboys. What matters to you is how this is going to change the landscape.
Bottom line facts: Facebook’s operating expenses on their $3.7B are about $2.7B. They’re making about a $1 billion net income.
If their IPO goes super great, and they do get valued at $80 billion, then if they don’t get their ad sales up to $10 billion+ in the next couple of years, Mark Zuckerberg is gonna get a nasty spanking from the stock market.
You can only live on “Hey everybody, I’ve got 800 billion people, woo hoo!” for so long. Eventually you have to sell ads.
So here’s what’s gonna happen. Facebook has NO CHOICE but to get serious about their ad platform. They might get ‘er done with a carrot, or do it with a stick, but they WILL do it. They have no choice.
Practically speaking, businesses with a www.IsFBforMe.com score of 8-10 find FB advertising reasonably easy now. (If and only if they’ve read my book. I know that sounds like chest beating but it’s true. Facebook is NOT as straightforward as Google ads.)
After Facebook makes a bunch of upgrades they should’ve done 2 years ago, people with scores of 5, 6 and 7 will be able to generate biz on FB easily too.
If your score is 6+, you need to pay attention TODAY, not wait a year or two. Now is the wild west, when you can get 160 free acres of land. That window will rapidly close.
I do not advise you to buy Facebook stock. That’s what the dumb money’s gonna do. Here’s what the smart money does: Build real estate on the cheap land.
My advice to you is: Use Facebook to profile your customers. Find the fishing holes on Facebook that bring you new leads. Take Facebook Firestorm when we offer it (coming in March) – sign up for notification here.
I repeat: There will be smart money and there will be dumb money with the Facebook IPO. BE THE CONTRARIAN.