Eight years ago a scrappy kid at Harvard had an idea.
I would have liked to be at Harvard that night; the night that Harvard got hacked. The night that one computer geek had a wild idea that actually worked.
The night the internet changed.
I wonder if he had any idea what he created. I wonder if he knew just how disruptive “The Facebook” would be.
Disrupting Harvard was just the beginning.
Today, I read a number of tech blogs and articles about Facebook’s IPO. Unless you’ve been living under a rock, you may have missed that as of this writing, just a few hours ago, Facebook filed it’s prospectus for an (IPO) initial public offering, seeking $5 billion in funding.
To me, this is fascinating on many levels, here are five I want to share with you today:
1. The Facts and Figures
We finally have insight into just how much Facebook is worth and how much people are to gain once Facebook goes public. Where does Facebook make money?
In 2011, 85% came from advertising. Zynga, the social gaming company accounted for 12% of annual revenues in 2011.
There are 845 million users per month (nearly one sixth of the WORLD is visiting Facebook), 2.7 billion likes and comments/day, 250 million photos are uploaded everyday and 100 billion friendships are started.
2. Mobile is Facebook’s Next Opportunity
425 million people visited Facebook on a mobile device in the month of December 2011 – yet no ads appear on the mobile Facebook app. So HALF of Facebook’s audience is not seeing their number one revenue source!
3. Sponsored Posts in Your Newsfeed?
The S-1 states that the increasing growth of mobile remains a risk for the company until it can successfully monetize the platform, which could include inserting “sponsored posts” into users’ news feeds on mobile devices. Will this be like Twitter’s sponsored tweets? I have a feeling, Facebook could face mutiny from many users if this is laid out.
4. Boy, I’d Like to Be a Realtor in Silicon Valley Right Now
Very soon there will be 3,000 new millionaires in the Silicon Valley. Mark Zuckerberg is only 27 years old and will probably be the youngest billionaire ever.
I live close enough to that area to know how huge that really is. The money and influence Facebook has already had and will continue to have on the market in the Bay Area is monumental. I hope agents in those areas are ready for the influx of money and power that is about to come their way. I hope for any Bay Area agents reading this, they are ready to roll up their sleeves and get ready to work for a huge opportunity – work those contacts, rock out their social media plan, and network like never before. There is a lot of money to be made very soon – and it’s not just from the 3,000 employees. Here is an interesting chart from Gizmodo that shows the wealth that is coming to the founders and employees at Facebook. By they way – do you see Bono on here? Who knew?!
5. The Evolution of Facebook
One of the things that continues to impress me time and time again is how Facebook continues to evolve and improve. They change as the times change. And times are changing FAST.
They aren’t afraid to DISRUPT their business model.
Think about Kodak, and the recent announcement that they were filing for bankruptcy. Why and how did this happen? Because they couldn’t keep up with the times. They were afraid to let go of the film business. Well guess what – times changed and they didn’t keep up.
In a letter from Mark Zuckerberg yesterday, he says “At Facebook, we’re inspired by technologies that have revolutionized how people spread and consume information. We often talk about inventions like the printing press and the television — by simply making communication more efficient, they led a complete transformation of many important parts of society. They gave more people a voice. They encouraged progress. They changed the way society was organized. They brought us closer together.
Today, our society has reached another tipping point. We live at a moment when the majority of people in the world have access to the internet or mobile phones — the raw tools necessary to start sharing what they’re thinking, feeling and doing with whomever they want. Facebook aspires to build the services that give people the power to share and help them once again transform many of our core institutions and industries.”
Conclusion
So will Facebook’s IPO blow any other publicly traded company out of the water? Most likely, but that’s not the big takeaway here.
Eight years ago, when a kid from Harvard was hacking at the college computer network, where were you? What were you doing?
Eight years ago, a lot of us were enjoying the benefits of an incredible market, and thought “man, this is easy money.”
Eight years ago the iPad and the iPhone didn’t exist.
Eight years ago, people were still chatting in chat rooms on AOL and Yahoo – that’s what social networking was in 2004.
My, how times have changed.
How have you changed in the last eight years?
No, we can’t all be millionaires from Facebook – but we sure can capitalize on one of the (if not, the biggest) opportunities we have ever had to change our business.
If you are still someone who doubts the power of Facebook for your business, it’s time to pull your head out of the sand. It’s time to do something disruptive.
It’s time to stop pretending Twitter and Facebook and Google+ and “social networking” are a fad.
What’s ironic, is here in the tech-savvy Bay Area, how many agents I know that still are doing it the “same old, same old” – they are the ones I still hear complaining about how tough it is now, or musing that “they guess they should get on Facebook.”
Stop waiting and get on the train of innovation.
We are living in a time where ANY information you need is literally at your fingertips. Don’t know how to maximize Facebook for your business? Start here, on Inman Next and do a search for “Facebook” – then go to Google. Then, YouTube. Then come to one of our events like Agent Reboot or Connect, and learn from the very best on what to do.
I realize this may sound a bit harsh – and maybe disruptive, but I wouldn’t be doing my job, if I didn’t tell each and every real estate professional reading this – that it is time to jump aboard.
Do not be left behind. It is no longer an option to NOT be on sites like Facebook and Twitter and to have a strategy to propel you into the next eight years…. and beyond!
What are your thoughts? As always, I’d love your feedback and comments – post a comment below!
February 2, 2012 at 11:02 am
Katie, Great article. Looking back eight years and seeing all the changes in not only how we do business, but how the entire planet now communicates in real time is mind blowing. I love what facebook and the social media world has brought into our lives. You are correct to encourage those who are declining to participate to join in now. It is no longer an option to “think about getting involved in social media” if you expect to keep/maintain your business, let alone have it grow! The best part about actually getting involved in Facebook, or any other social media site…is that it is actually easy, fun, and puts you “in touch” with people in a wondrous way. Another great post, Katie, as usual! Thanks!
February 2, 2012 at 12:03 pm
Thanks Michelle, I appreciate the comment. It is pretty mind-blowing how ingrained Facebook and social media has become in our daily lives. And agreed – it is fun and easy!
Thanks for the kind words!
February 2, 2012 at 11:33 am
I have just begun to get serious with social media and specifically Facebook. You know what? I’m hearing back from people I haven’t talked to in awhile. Simple. Stay in touch, stay in mind. Free. It’s a gift.
February 2, 2012 at 12:38 pm
Absolutely Liz – that is the beauty of it. Thanks for commenting!
February 2, 2012 at 11:39 am
Katie, the chart above describing who owns Facebook values the company at $50 billion, however the IPO is expected to value FB at $75 to $100 billion. So, the actual value of the FB ownership listed above will be doubled.
February 2, 2012 at 12:47 pm
Very good observation Sarah. Wonder what they will do with all that money?
February 2, 2012 at 3:09 pm
Katie:
Very well written, and it will be a game changer for Peninsula Real Estate and all the outlying areas. The number of FB owners will go up dramatically as the public is offered a chance to buy shares, so it will distribute differently. Demand for homes will typically increase again a few months later when insiders can sell their shares. The builders will be able to get back to work finally. It’s definetly a benefit for the area and I’m glad they left Boston!
February 2, 2012 at 12:34 pm
Great article Katie! …. a quick story ….. i don’t try and ‘push’ my listings on Facebook, but will take a unique photo or create a story and post on my wall, but yesterday I had one of ‘those days’ ….
everything was clicking, new listings signed up, new leads seeming to ‘drop in’ (after lots of prospecting …) and a good vibe from my clients who I had talked to…. thought I would just drop a note on my Facebook wall and give thanks as well ….
I happened to mention in my comment that I had a referral for a business looking for 100+ acres Organic Farm here in the Fraser Valley of BC ….. one those who read the wall has a client who needs to sell their Farm as they are making a major investment and inroad into the California market ….. and now I am working on getting both parties together ….. social media is truly ‘social’ ….
…………….however I have found that ‘it’ and the users should be treated with respect.
February 2, 2012 at 12:49 pm
Thanks Ken! I am so glad to hear you don’t push your listings. I think what you are doing is perfect – tell a story, show a photo or video – don’t push.
I love your example – really what you were doing was sharing good news that you were excited about. What a great story… and it would have never happened without social. Thanks for sharing!
February 2, 2012 at 1:01 pm
I really like the line about the 1,000 new millionaires in the Bay Area. But keep in mind that Facebook has offices all over the country, and world. Lots of opportunities for RE Agents.
February 2, 2012 at 2:30 pm
Eric, very good point! Thanks!
February 2, 2012 at 1:38 pm
Excellent article Katie! “Get on the train of innovation” AMEN! Thanks for sharing this awesome info…so curious to see where we are in another couple years!
February 2, 2012 at 2:31 pm
Thanks so much Teri! Agreed – can’t wait to see what the next 12-18 months are going to bring. We are in an exciting time!
February 2, 2012 at 1:56 pm
I started in real estate as a young inexperienced kid at the age if 24. Now I’m 28 and have been a multi million dollar producer every single year, and all because of my knowledge of social networking, 99% of my customers have contacted me via Facebook. Nowadays even the seasoned realtors ask for my help navigating Facebook!
February 2, 2012 at 9:40 pm
Wow, Anna that is fantastic! I’d love to see a link to your Facebook page and see what you’ve been doing. You are obviously diving in and making the most of this opportunity. Kudos to you!
February 2, 2012 at 1:57 pm
Be careful. The only people guaranteed to make money by owning Facebook are the original owners on your list. Everyone else will be at risk! You will make more money in the long run by being ON Facebook than by BUYING Facebook.
February 2, 2012 at 2:32 pm
Ken, excellent advice, thanks for your comment
February 2, 2012 at 2:09 pm
Hi Katie, excellent article ! I have been talking/dreaming about what those insightful people must feel like now in anticipation of this day knowing they are at the finish line of riches with their lives just beginning ! Hooray for forward thinking… Take Care, Karen
February 2, 2012 at 9:41 pm
Karen, thanks for your comment. I know, can you even imagine what it must feel like? What an exciting future. Thanks for reading and leaving such a positive comment!
February 2, 2012 at 2:25 pm
what’s this facebook and Twitter thing people keep talking about?
February 2, 2012 at 2:42 pm
This is the time, when we will look back and say there were endless opportunities for clever, open, creative individuals that were willing to be the 2nd round of pioneers in this new way to communicate.
My generation, are not yet grasping it, in general…they don’t see the possibilities. The brand…..its all good will, relationships, connection! It is tough to grasp it all–as the info is coming so fast and so intense. thanks Katie for helping us see the forest thru the trees. I am excited about this opportunity!
February 2, 2012 at 9:43 pm
Judy – you are a PERFECT example of someone who knows they need to dive in – learn and implement. You came to Agent Reboot NYC and Connect and you were one of the first people to reach out to me to tell me how you hired a professional videographer. And now, you have 3 great videos done, you are on Facebook, YouTube and Twitter and you are getting the recognition as a thought leader. Keep up the great work. Imagine at the NEXT Connect how much farther ahead you will be then your competition!
February 2, 2012 at 2:55 pm
Just by sharing the inman news regarding 4 things to know about buying…Just got a call from a friend on FB and ready to buy…SOCIAL MEDIA IS THE WAY TO GO!! Thanks for the great post Katie!!
Have a great and prosperous 2012
February 2, 2012 at 9:45 pm
WOW Fred – that is awesome!! Thank you for sharing! That is fantastic and such a great example of what happens when you keep plugging away and sharing great content. Keep up the great work!
February 2, 2012 at 2:58 pm
Great post! Very well summarized and put together. Agents must adapt to todays technology. Yes, people doing the same old same old will get left behind. You can embrace and capitalized on the changes or get left behind. Real Estate is finally catching up to todays technology
February 2, 2012 at 9:46 pm
Bill, absolutely. You need to embrace it or get left behind. Thanks for the nice comment!
February 2, 2012 at 3:02 pm
Excellent article. Thank you for posting and oh how things have changed drastically for Realtors but alot of them are not taking advantage of it. But hey Realtors get on board and if you do not know then learn this is your business treat it like a business. Thanks again for positing
February 2, 2012 at 9:54 pm
Thank you Mary Ann – things sure have changed… that’s why it is time to get on board!
February 2, 2012 at 3:03 pm
Right on Katie , sad but true, if you don’t adapt you will be left behind . Out Of Site .. Out Of Mind
February 2, 2012 at 9:54 pm
Thank you Brian – so true!
February 2, 2012 at 3:10 pm
IF Facebook thinks Mobile is the next frontier – they better get that iPad APP to where its even usable, crashing, freezing and no way to share? – like many others I dont even use the app anymore use Safari -
February 2, 2012 at 9:54 pm
Mike – I could not agree more. Their iPad app drives me crazy!!
February 2, 2012 at 3:59 pm
If facebook turns into commercialized advertising bonanza like everything else has people will leave by the droves. I hope that does not happen. I do like the idea of realtors sharing a story about what they are looking for if it unique or they are having a problem locating a property type and need help, but PLEASE do not market your listings this way. I can promise you it will make your friends leave you too. Think about it if all of your friends were doing this. I barely have time to read all of the FB comments from my friends that I am interested in without having it muddled up with advertising and solicitations.
February 2, 2012 at 9:56 pm
I agree Kim – I think a Realtor naturally talking about their day, or a positive situation with clients, or posting a photo of a happy family who just bought their first home is great – but blatant “3 bedroom, 2 bath, charming home…..etc etc” will not fly. Thanks for your comment!
February 2, 2012 at 4:02 pm
Katie,
“Gathering information is the first step towards awareness and education. Sharing information with others is the first step towards building community.”
Thank you for sharing!
When first starting with the internet and speaking on a real estate panel, I was told that the internet was a fad. Oh my !!
Although true that the internet can not sell homes, it is the way that a huge, and growing, percentage of consumers start their information gathering. Neglecting the internet as a valuable source for free, and effective, marketing is irresponsible at the very least.
It is disturbing to see just how many agents, and their brokers, that do not utilize the many FREE ways to market themselves or their brand.
I use Realtor.com as a litmus test to see how a particular real estate community is progressing when it comes to electronic marketing. For example, in our community there are only 250+- truly local Realtors. Of those, less than 10% have completed their “FREE” profile (Included as a benefit for their $500 in NAR and Car dues). If they will not complete a profile that is part of a benefit package that they pay for, they are a long way from understanding the power of the internet in building their future. I suppose that is really good news for those who do but, solidifies the view in the community that we are “behind the times” and not looking out for our clients best interests.
In any case, thank you for sharing!! I do hope that all Realtors will take a long hard look at your insight and take the first step to securing their future in real estate.
February 2, 2012 at 10:03 pm
Christopher – Thanks so much for taking the time to comment. I get so frustrated when I see the same thing. I hope Realtors will take a long hard look too and start moving forward. Thank you again!
February 2, 2012 at 4:55 pm
Great article, Katie!
As you know, I am all over Facebook and other social media platforms. But, I know that there are several in our industry who have not adopted this advice you are sharing.
I am number 4 of your list of 5 things, and have been contacted by several reporters this week regarding the pending Facebook IPO and the potential effect on the Silicon Valley’s real estate market. A couple of the articles already hit the wires. Today, I was interviewed by the Associated Foreign Press on camera.
Real estate in the more desirable areas of Silicon Valley (Atherton, Menlo Park, Palo Alto, Los Altos, Los Altos Hills, and Mountain View) has experienced multiple offers for quite a while due to a shortage of good inventory. We are sincerely lucky to live here compared to most of my real estate friends across the country.
Facebook employees are getting consulted by professionals telling them to take their time in purchasing and don’t rush. With a shortage of housing and more qualified buyers every day, it would likely result in Facebook employees bidding against each other they all ran out and bought homes immediately. Plus, they cannot exercise their options for about 6 months after IPO.
There is no doubt, that Facebook going public will be great for our industry. The question is just how grand?
Thank you, again, for your post! You do an awesome job at Inman and for us all!
February 2, 2012 at 10:13 pm
Thank you so much for your insight Dawn. Kudos to you for positioning yourself as one of the go-to-people for the media outlets to reach out to. I still remember when I first met you – probably 3-4 years ago at a Bar Camp in Silicon Valley and you were making things happen then too via social media (and just plain hard work.) These things pay off – and usually ten-fold. Thanks again for commenting. Please continue to keep us posted on the Silicon Valley market. Thanks also for your kind words – much appreciated!
February 2, 2012 at 6:08 pm
Hi Katie,
Thanks for writing a great article on the power of Facebook. But I just want to point out something we’re all overlooking.
Anyone who remembers AOL and MySpace, and how many Real Estate Professionals jumped aboard those trains, all ran into one big problem … They fell out of favor with the public.
I wouldn’t be surprised that the real lesson here is that, as with the other “social networks” that went public or got acquired and began making efforts to “monetize” the eyeballs, that’s when users fled.
Facebook made it a point to do what AOL and MySpace failed to do by reaching critical user mass so that when they start monetizing the eyeballs, revenue will grow in spite of user abandonment.
Here’s my takeaway: don’t go ALL IN on the Facebook train. Create engaging websites that serve your markets organic real estate needs. Never stop relying on the only “Social Network” that’s still here and proven to work: EMAIL.
Because when we’re 8 years removed from the Facebook phenomenon, you’ll have a real Social Network where everyone knows your name (an Internet hub that will always be ONLINE)
February 2, 2012 at 10:14 pm
Michael – thanks for taking the time to comment. I completely agree in not “putting all your eggs in one basket.” I can’t wait to see how email will evolve over the next 5-10 years – it has to get better than it is now!
February 2, 2012 at 7:00 pm
Exciting news! Thanks for sharing. I suppose these fortunate forethinkers will be able to enjoy the better things in life while they are still young. Vacation homes in desirable places should be on the hit list.
To the good life!
February 2, 2012 at 10:15 pm
To the good life – thanks for stopping by Bruce and Sandy!
February 2, 2012 at 8:07 pm
Thanks for sharing! Yes, social media is here to stay, and
It’s fun and informative. Living in Marin County, I find it has
Been an opportunity here to stay connected to all the latest
And greatest technology and new media outlets…here’s to a great
2102!
February 2, 2012 at 10:16 pm
Thank you Madeline! Cheers!
February 2, 2012 at 9:49 pm
Hi Katie….Awesome report, I still have fellow Realtors in my office telling me, I don’t do Facebook and never will. Just where the heck does that thinking come from at this point of Social Media. Please show us(me) way to explode our Business.
Thanks again!!
February 2, 2012 at 10:17 pm
Fred – that kind of thinking doesn’t make any sense to me either. Being resistent to change is just foolish – we are in a time where we need to be open to change and not run from it. Thanks for leaving a comment!
February 3, 2012 at 12:47 am
Katie. Your intense insightful passion worked you thru the night. Your passion conveys the significance of the FB IPO pulse as well as your message itself. Thank you. You inspire.. Our mission is to enact it now. Inman gives great vehicles to discover & evaluate. The tools fit & flex profitable real estate business growth. Cheers!
February 3, 2012 at 9:45 am
Thank you Martha! I really appreciate that. I am very passionate about this topic. Thanks for leaving a comment!
February 3, 2012 at 8:17 am
Katie,
You were able to articulate exactly what I have been thinking all along about Facebook. Case in point, I met a woman (offline) at an open house a few months ago and she’s over time, gotten to know my personality through facebook. Yesterday I saw that she was on Facebook when I was so I casually said hi thru the chat feature, we chatted back and forth a bit and guess what? She’s ready to buy and asked me about lenders! Also, 80% of what I am learning about new technology for Realtors stems directly from interaction with other tech savvy Realtors all over the country. I get 75% of my daily news from what others post here. Facebook, people!!! Get on the train or move over!
February 3, 2012 at 9:46 am
Sue, thank you for sharing. WOW. That is exactly what I am talking about. Realtors need to see Facebook and social media differently. It’s not a “pay this and get this” platform… it’s a relationship that gets nurtured over time – just like in person. I appreciate you taking the time to comment!
February 3, 2012 at 3:37 pm
Sue, I do social media a lot but not because I think it is the best use of my time, for me I am more interested in what it will develop in too then the time absorbing product it is now. I am hoping that a Steve Job’s will come alone and blow it out of the water as he did with the archaic windows Os. My I pad is so much more simple and easy to use. May social media get the same quality.
February 4, 2012 at 9:49 am
1st rule of sales and/or marketing, be where the people are. If the people are at isle 6 at Safeway, you better be there, if the people are in the PTA, borrow your neighbors kid and join too. The people are online, the agents that are not there or not there effectively will go the way of blockbuster, tower records, Kodak and others that failed to respond to a shift in consumer behavior.
February 4, 2012 at 9:16 pm
I would buy and hold now but this stock is no being traded yet so the value is on paper only. Think about it, what makes something worth money? it’s the revenue it produces and so far Facebook is free to the majority of users. Watch to see how revenue begins to be created by charging users for certain services. Then you will know the real value.
February 8, 2012 at 3:37 am
Awesome articles Katie. I would love to invest in Facebook’s IPO, but i don’t know how much is required. Thanks for the insights.
M Mark
February 15, 2012 at 10:34 pm
I don’t think real estate investors and agents have fully optimized the power of facebook. You can easily make facebook pages for homes.
February 20, 2012 at 10:22 am
Someone should research Allison James Estates and Homes. We came out 4 years ago with a brand new business model within the Real Estate industry and in 4 years with zero advertising, we have a 700% growth, and growing by 5% to 7% per month and operate in 16 states.
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