Dumb Money vs. Smart Money on Facebook

PerryMarketing Blog2 Comments

Share This Post

Facebook’s about to go public. A company that sells $3.7 billion of advertising is likely to get valued at $100 billion.

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.)

"What should I do next to grow my business this year?" Take my 2-minute quiz and I'll show you where you'll get the most bang for your buck.

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.

Perry Marshall

Share This Post

About the Author

Perry Marshall has launched two revolutions in sales and marketing. In Pay-Per-Click advertising, he pioneered best practices and wrote the world's best selling book on Google advertising. And he's driven the 80/20 Principle deeper than any other author, creating a new movement in business.

He is referenced across the Internet and by Harvard Business Review, The New York Times, INC and Forbes Magazine.

2 Comments on “Dumb Money vs. Smart Money on Facebook”

  1. Perry,

    Why not invest in facebook stocks for the next 12 months then sell!

    After all, business is buy, sell and move

    Is it not..?

    Like you did with adwords Perry, like ad buyers do.

    Buying facebook shares is a good idea.

    It would be interesting to know what shares Perry invests in? Outside of PerryMarshall.com

Leave a Reply

Your email address will not be published. Required fields are marked *