Facebook Virtual Gifts Makes About $28.5-$43.5 Million

Jeremy Liew, Managing Director of Lightspeed Venture Partners has figured out how much Facebook makes from virtual gift sales. The range is between $28.5 million and $43.5 million. The average is $34.5 million.

A majority of the gifts that are sold are the ones that appear on page 1 of the Gifts directory in the Best Selling category. Below is a screen shot of the current Facebook page 1 directory:

“Facebook creates a certain fixed number of each type of gift. When the
number remaining for any particular gift drops below 100,000, Facebook
displays the number left. (The most common size runs are 100,000 and
1,000,000 but they range as high as 10,000,000 and as low as 15,000.),” wrote Liew on his blog.
“For those items where less than 100,000 remain, we can track how many
gifts had been sold in the preceding week by subtracting the number
remaining from the number remaining the previous week.”

Related Links:
1. LSVP: Jeremy Liew

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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