Seeking Alpha
Newsletter provider, dividend investing, ETF investing, long/short equity
Profile| Send Message|
( followers)  

By Alexander Moschina

Without question, Facebook is one of the biggest stories of the last decade. Its founder and CEO, Mark Zuckerberg, was just named Time Magazine’s “Person of the Year” for 2010. Yet only he and a few people got rich off the $41 billion social networking site.

Until now, that is.

No, the company isn’t going public. Even if it did, its IPO would be astronomical. But there is a way to cash in on Facebook’s massive success. For roughly $1 per share…

Facebook news site AllFacebook.com recently launched a new subscription-based service – the AllFacebook Services Directory. It’s an online marketplace, where businesses can advertise Facebook-related marketing, software and other services.

The site already attracts more than a million unique visitors per month. And the tiny company behind it has a market cap of $26.7 million. News of the launch sent its shares soaring more than 50%. But it’s just a preview of things to come…

Facebook Ad Revenue Set to Blast Past AOL

When it comes to monetizing the web, New York City’s WebMediaBrands (Nasdaq: WEBM) has been at the forefront for over a decade. It manages a network of professional blogs, career sites and newsletters.

But today, the company has its sights on Facebook. Particularly the $800 million in ad revenue it raked in last year…

Analysts predict that Facebook will soon reach $1.4 billion in recurring ad revenue, crushing web veterans like AOL (NYSE: AOL). And as Facebook’s strength as an ad medium grows, so too will demand for WebMediaBrands’ new service…

WebMediaBrands Gets In on the Ground Floor of a Rapidly-Growing Market

Now that the social networking site has reached 500 million users, it’s attracting some major brands. But did you know that more than half of its ad revenue still comes from small businesses? And the common denominator here is that they need help marketing in the new adspace…

That’s where online ad firms like WebMediaBrands come in. They make a living advertising on social media sites. Unfortunately, though, potential clients have a hard time finding them on the open web.

WebMediaBrands’ AllFacebook Service Directory is like the Yellow Pages for Facebook advertising. A monthly subscription fee ensures that the businesses listed are legitimate. And for WebMediaBrands, this creates a significant repeat revenue stream. Not to mention it gains access to a young market currently worth more than $400 million…

The directory is a game-changer for the company and the service’s success will likely lead to others like it. Its site SocialTimes.com could easily host a directory for companies that market on Twitter, YouTube and other sites.

Over the coming years, WebMediaBrands will continue to unlock the web’s profit potential. And as social networking evolves, the company will expand its business as it creates even more revenue streams.

Disclosure: Investment U expressly forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees and agents of Investment U (and affiliated companies) must wait 24 hours after an initial trade recommendation is published on online - or 72 hours after a direct mail publication is sent - before acting on that recommendation.

Disclaimer: The Oxford Club LLC/Investment U and Stansberry & Associates Investment Research are separate companies, and entirely distinct. Their only common thread is a shared parent company, Agora Inc. Agora Inc. was named in the suit by the SEC and was exonerated by the court, and thus dropped from the case. Stansberry & Associates was found civilly liable for a matter that dealt with one writer's report on a company. The action was not a criminal matter.

Source: How Investors Can Finally Cash In on the $41 Billion Facebook Empire