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Winning Bid: $25,500.00

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Congratulations to the winning bidder, shippa!

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darbsllim (0%)
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#1 Facebook Mac Application - Dashboard Widget 17k daily users, 141k total users

50K investment from hedge fund fell through due to contract disagreements

Description:

The dashboard widget is a neat and sleek facebook notifier for Mac users, it pops up messages on a user's desktop when certain Facebook events are triggered. It's a way to keep up with your facebook account while you're not even logged into Facebook. It's also a great way to deliver cpm/cpc ads to users' desktops. It has had a huge fanbase since it's launch, with about 141,000 loyal users.

 

Anyone with CPA experience knows that toolbar downloads tagged into an installer can pay up to $2 per download, I've had over 200,000 downloads with this toolbar so far and I'm punching myself in the face for not having spent the time early on monetizing this.

 

This application has been on TOP of the "For Your Desktop" section of the Facebook application directory for over 8 months, just behind the Blackberry & Firefox applications.

 

(http://www.facebook.com/apps/index.php?type=1# Click on Most Active Users)

 

The Daily Active Users just keeps climbing, and so does the total user count.

 

This application has been featured on Apple.com

 

I was busy with 10 or 15 other projects and didn't have the time to put into monetizing it unless I got some funding.

 

I secured $50,000 from a hedge fund for this application a month or 2 ago, but there were some issues with the contract and I decided not to sign it due to a non-compete clause.

 

These are all mac users - to have a targeted niche like this of 141,000 mac users, with 17,000 using it daily, is worth a lot of money to the right person.

 

***there are no real pageviews, there are 15 million API calls monthly

Revenue Details:

The application is not monetized, but I've come up with a detailed business plan that explains how to take the 17,000 daily active users and turn that into a lot of money.

 

This thing has the potential for multiple 6 figures yearly in the hands of the right person.

 

This is what attracted the hedge fund to invest $50,000 in the first place. Unfortunately a lot of my other business may have been in jeopardy (due to a non compete clause) if I went with their contract, and I pulled out of the deal.

 

You will get the business plan and everything else related to this project.

Traffic Details:

 

The traffic comes from Facebook and then a few other referring sources like Google, Apple and fans who recommend it to friends.

 

The main source of traffic is from the directory where it has been getting sustained exposure for 8 months near the TOP of the directory list for desktop applications!

 

No advertising money has been spent on this widget. Once you have it monetized, you can easily double the user base through advertising. In addition, you can pipe the widget into Bebo (they licensed their API from Facebook.), this will add another 50 million user base to monetize from.

 

Here are some of my thoughts on monetizing this widget:

 

1) Put CPM/CPC ads on the notifications

 

2) Sell facebook application advertising event popups, people pay 25-40 cents a click for these

 

3) Monetize the list yearly with MAC related affiliate offers, the users are early adopters and loyal to the widget. Apple usually has a big launch every year – So, you can piggy back off their prodigious advertising campaigns.

 

4) Turn the widget into an application instead of a "For Your Desktop" application so you can monetize the traffic on Facebook and build a community of those who use the widget. You can do this by making the 'download page' an application instead of http://www.facebookdesktopwidget.com - that way you can monetize through traditional facebook cpm/cpc advertising as well as the desktop monetization.

 

5) Couple the download with a toolbar offer, toolbar offers pay up to $2 each - with about 200,000 downloads so far you can do the math on that one going forward =)

 

6) Buy the widget and sell to a Mac related company for branding and corp awareness purposes. This widget with 140,000 loyal MAC users is priceless to the right company. Fortune 500 companies are paying MULTIPLE 6 figures to try to build a community and brand awareness on Facebook and not having success. If you had contacts at Macworld or Buy.com or one of those companies, they would pay multiple 6 figures for this.

 

 

I know I underestimate the value of this application, but I just want to get rid of it - it's time for someone who's got the resources and time to take this to the next level.

 

I am working on too many other projects and need to lighten the load.

 

My ADD schedule is your gain!

 

 

Side note 1: I even have a film project I am directing starting mid July that will take me out of commission for 6 weeks!

 

Why? Why? Why? Do I spread myself so thin? Entrepreneur ADD? Yes, I love to create viral stuff!

 

Side Note 2: I have a friend who is close to selling his viral apps for over $700k. He already has two big

Internet Marketing Gurus begging him do a limited seating “How to make big money on Open Social and FB apps seminar” in Sept. They are thinking of setting the price at $10k a seat. He has promised me two seats for FREE. That is one for me and one for you. Yep, I am gonna chip in the second seat ticket for you at no cost if you want to come.

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Questions to the Seller

  1. Just wanted to note that this worths a lot more than what you want for it!
    Stil can't understand why you sell?
    Are you really going to sell ? Are you really eraning more than 9K a month with your other things that make you busy ??
    Just work on it for 9 months or so and can sell it over 100K you know! ?

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  2. Yea, I am so busy I can pull my hair out. Also, my sister and I just got our short film accepted into Toronto Film Festival. They had over 518 submissions and only 13 got in. I got some good sized backers on my summer film. This film funding is like manna from heaven. Some people never get a first chance to crack the film industry! So, I am committed to make my director dream come true. Sundance here I come!

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  3. Does the application have auto-update functionality so that you can update existing users to an advertisement-enabled version of the application?

    Thanks,
    Lenny Grover
    New Media Properties LLC

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    ValuableVisitors (0%)
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  4. Here is a email reply that should answer some more questions!

    First of all, congrats on getting into the film festival, that's great news! (Yahoooo, I am so High I can't even describe it!)

    I have just a few questions on your listing.

    1) Is there any way to contact the existing users or upgrade the existing version of the widget they are using? If not, is there any way you can think of to monetize those existing users?

    (You can't directly contact the users at this time. However, you can upgrade the application with additional value added facebook features (IM updates) and embed an update warning on current API calls. This should get the hyper majority of daily users to upgrade.

    We haven't changed anything on the site since we started. Therefore, our users have not been jacked around and abused or become jaded. They love this utility widget. Therefore, I am confident most will just install the new upgraded version.)

    2) Approx how many new downloads of the widget do you get per month? (Majority of the installs came before 3 months ago when I was getting this app ready for sale. I haven't really checked on the stats lately. I just know the daily user base is still strong.

    Listen, let me tell you how slack I have been on this app. We don't even have a facebook friend's invite function on this app (duh - I am stupid!). This is the number #1 way apps on facebook increase users. Once you add this function on the upgraded edition, it should significantly increase the installs.)

    3) Is the only way to download the widget via your website? If so, do you have some traffic statistics? How much are you making from the existing banner ad on the site

    (Yes, at this time you can only download on the website. We are not making any banner money at this time on the app.)

    4) What exactly is for sale? Do you get the source code for the widget (Objective C?)? The existing site and domain name? Login to update the Facebook application listing? (Yes, you get all source code, existing site and domain name. And I can refer you to a programmer who can complete the Version 2 widget with ad displaying capabilities. Yes, we will transfer the developer status to you directly and then uninstall our developer status on the app.)

    Thanks for your interest,

    Brad

    Thanks!

    Ed.[/QUOTE]

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    darbsllim (0%) (seller)
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  5. Holly smolleys! You know I have been getting a lot of PMs from fellow future film moguls. You guys will love this one. I just got PMed from a public company with awesome film distribution channels. Man if this is not the Law of Attraction working I must be drunk. (where is my JD?)

    Listen, I found my current movie backers developing facebook apps. I got into the web 2.0 game because I didn't think I had the skills or contacts to get my movie funded. I thought my movie idea was just a pipe dream. But, I have meet so many nice Ballers through building facebook apps, it is sick. So, I am telling you I don't care if you don't buy this app. But, if your dream is to go big in films, then you need to get into this facebook (web 2.0 game). Because the ballers are swarming around here!

    Posted by:
    darbsllim (0%) (seller)
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  6. Why are you selling?

    Posted by:
    nikolaalx (100%)
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  7. Please identify the programming languages used to build this application. Regardless, not a problem for me because I co-own a small website development firm which will allow us to leverage the existing code. Please confirm source code will also be provided. Thanks.

    Posted by:
    bumpngrind (0%) (bidder)
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  8. Sorry, found the answer to the source code question (disregard)

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    bumpngrind (0%) (bidder)
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  9. You had this application listed here 3-4 months ago also. what was the outcome of that auction? why didn't it sell?

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    pdizzlle (0%)
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  10. Same question as pdizzle, really.

    Posted by:
    oziman (60%)
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  11. The sales project went to the back burner because the previous high bidder was taking too long to come up with the money. I just didn't have the time chase people for the money. I have hit two projects since then that have been monetizing at 6 figures monthly.

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  12. Here is another PM I just got.

    Hey There,

    Very nice widget you have here.

    Is this actually a "Facebook Application", or is it just a Dashboard widget that provides users updates with their facebook?

    (It is a widget, you are correct.)

    What is the reason for selling?

    (I think this thing has a lot of potential for monetization in the hands of the right person. I just don't have any time on my hands right now because of the film and other responsibilities.

    The funny thing is I had shelved this to the back burner for awhile now because I have been so busy with other projects. It was not until I got an email from the co-founder of Sitepoint asking what happened to the sale that primed this pump again.

    He gave me Free credits to list again as long as I gave him all the info of the bidders. Matt is interested in knowing the ballers bidding on the auction!

    So you are forewarned that your info will be entered into Matt's personal rolodex!)

    Here is Matt's email on May 6, 2008, 16:59 to me that got my lazy butt up and running on this.

    Hi,

    Just wondering if you managed to sell the Facebook application that you listed for sale in our Marketplace? I noticed you had a high bid of $45K, but that no winner has been declared.
    __________________
    Matt Mickiewicz - Co-Founder

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    darbsllim (0%) (seller)
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  13. Here is another PM that I got.

    [QUOTE=shippa]Hi, A huge congratulations on your film and attracting movie backers and distributors into your life. How exciting! Good on you for going out and making it happen. Wishing you all the best.
    I’m very interested in your site and have the cash available. I don’t know much about facebook apps or how it all works but would be excited to learn.
    I have a few questions first though:

    1. You mentioned you have a programmer who can complete Version 2 of the widget. Would they also be able to do any of the other things you mentioned such as making it into an application or coupling it with a toolbar and what about setting up an ecommerce system on the site? Would you have a rough idea of how much these would cost?

    The programming house who can upgrade this widget/app is a personal friend of mine. Last time, I talked to him he said it would costs around 8.5k for toolbar version 2 and application. (Again, you'll need to deal directly with him.) He holds 2 patents, and has worked on projects with British Telecom and Time Warner. He is a high end development house. You maybe able to find a less expensive development house to use.

    (Yes, I am sure he can add the ecommerce system too. But, this is extra.)

    The widget is in Java.

    2. Does you business plan expand on the ideas you mentioned in the sales pitch?

    I am going to get my old business plan that I got together for the FB fund, and post it on the site. Again, this is an old plan. Things have changed.

    That means - you really need to see what plan you want to pursue to monetize this widget - and just go for it!

    3. Would you be available for support and to bounce some questions off for a while? I’m not talking like 10 questions a day but perhaps if there’s a hiccup or something.

    Yes, I can help out once in awhile and connect you with some monetization houses that will do much better then the CPM sites most people use on FB right now.

    I will help out a minimum of 20 hours after the sale of the widget. Beyond that will all be volunteer work on my part. Yes, I am willing to help all I can as a friend. I want you to rock-n-roll this widget. But, please don't abuse the friendship. Also, I will be gone for small period of time during the summer to film my first movie. I will be really focused during that time because I'll diligently take my Retalin (just joking). I will really be focused during that time, because my burn rate with the casts and crew will probably cause me to have a darn ulcer!

    4. You mentioned you weren’t happy with a non-compete clause in your original agreement. Does that mean you might compete directly with this widget at some time in the future or was it more about your other ventures? Would you be willing to sign a non-compete clause as far as competing directly against this widget? I guess I’d just like some sort of assurance that you wouldn’t release another widget that does basically the same thing or even something better, for a while at least.

    Yes, I am willing to sign a non-compete clause regarding this widget. The problem we had before was the hedge fund wanted to preclude us from developing any additional widgets or apps. They wanted us on as permanent consultants with limited upside. (Mommy didn't raise no dummiess.)

    5. What are your costs? the biggest cost on my other sites (non- FB) are affiliate costs and advertising costs. Both are non-exsistant with the current state of my widget. This is why developers love FB and hopefully Open Social one day (if they ever get their crap together.) Therefore, I think the only expenses right now are my url fee ($8 year) and hosting fee (hmm - prorated maybe $30 a month?).

    I have literally not touched this widget since late last year, and the users keep loving it. Didn't I tell you I was a lazzy arssss!

    6. Would you provide proof of downloads and users prior to settling?

    The best way to get proof is to go and download the widget and see how it works for yourself. On that page, you'll see the number and percent of daily active users.

    For example, May 15 - it says

    Dashboard Widget
    By Dashboard Widget
    Dashboard Widget is a widget developed for the Mac OS X dashboard. It is designed to show notifications from the Facebook website including; messages, pokes, friend requests and group/event invitations.
    18,004 daily active users (13%) — 9 reviews

    These numbers are derived from daily unique IP API calls to the FB server.

    I am not related Zuckerberg. There is no collusion on those numbers. I wish I was his older brother. I would be like on the phone saying, "Hey little Bro. You know that 25cents I loaned to you when you were like 3 years old to buy a piece of Bazooka gum. Well I think with the magic of compounded interest, I am due around 20 million little bro! So, just write me a check - I am sure you are good for it. I need a little petty cash to buy some Mentos!

    Then, I would be on the beaches of some tiny South Pacific Island (maybe Paulu). Diving every morning to get my fresh lobster and fish. Living large with spotty internet access! LOL Ok, let's make it Bali. I heard they have better Internet access.

    Look forward to hearing from you.

    Shippa

    Posted by:
    darbsllim (0%) (seller)
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  14. Ok, I am in a business quandary. The auction is coming to a close beginning of this week. But, I need some Sitepoint mastermind help on making this decision.

    1) I have new internet guy from Australia who is serious in monetizing this app, and will wire the BIN full price next week without a flinch. However, he needs some help in the monetization transition. He doesn’t own a Mac, and doesn’t know much about Java. Ordinarily, I would say “No” upfront. However, the guy is super cool, and in a high financing/law management position in a large Australian public company. He wants “Out!” like I wanted “Out” before, and somebody helped me get started, and through the minefield. Another aspect to consider is I just went through Eben Pagen’s “Atltitude course for Top Gun Internet Entreprenuers”. (This is the baddest training program I have ever seen. I highly recommend it, and I don’t even have an affiliate link! LOL) On the video, Eben talks about learning and teaching. Specifically he wants his students to teach someone who is a Star producer but a little disadvantaged. Now, don’t get me wrong – This Aussie is not financially disadvantaged. I am sure his wallet could rear naked choke my sorry butt out in 5 seconds. However, he does need help in the transition.

    Side note: Man oh man, the US dollar used to be so much stronger than Canadian dollar. Just as I get started making some money, the US dollar tanks, and now I feel like a dunz. Oh well, the vagaries of making money. I guess I should just be happy that the US dollar hasn’t hit the state of Weimar republic’s Mark right before WWII. That would really send me into a spiral of depression.

    2) I have a cool Cali Internet guru who wants to buy me out at a higher then BIN price, but it is with restricted stock (Amex exchange -50% 6months – 50% 12 months). I don’t know anything about stock except I lost 20k on my first penny stock purchase last year. I put 30k on a penny stock my friend hyped to me about and cam out with 10k. Errrrghh, I am an indiot. Shoulda listen to all my wiser friends, and stayed out of penny stocks. I heard 90%.of people lose money in those stocks.

    Now, this guy has a phalanx of programmers. So, helping him monetize shouldn’t be any problem at all. And, his company has some super funny site with incredible untapped potential in the Web 2.0 arena.

    But, I don’t really know the pitfalls of restricted stock or what I should look out for in the contract. Yes, I will pay a lawyer to look at it. But, you know how much they charge just to breath in front of your contract. So, I am asking for some wise Sitepoint advice from anyone with empirically data on this subject.

    Thanks in advance everyone. This auction is coming to an early end. I have loved all the PMs I have received. Thanks for reading all my ADD ramblings. I’ll send all the auction bidders and PMers a copy of my movie dvd when I am finished!

    Posted by:
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