Monetization is certainly a big deal these days, and it seems that many people need to follow along with Snapchat’s example when they set out to master a money building website. The site represents a quickly growing messaging service, and they recently rejected a huge acquisition offer from Facebook. While few people would have ever said no to $3 billion in cash, there are plenty of people looking at purchasing the messaging service and the order comes at a time when people are very quickly moving away from SMS and other traditional messaging services to something else.
Website and Service Clones are Hot
Cloning sites is hot in the marketplace right now, and it could be easy to call Snapchat a clone. Chinese economic powerhouse Tencent offered to lead an investment that would have seen Snapchat’s value sore to $4 billion or perhaps even more. Regardless the company is waiting to receive a real order until next year, when the site will grow in the number of users and therefore be worth potentially even more to those attempting to buy it then it is today.
Regardless, official spokes-personnel have declined to comment on the issue. Currently the site specializes in producing apps that use ephemeral messages. The messages can include text or photographs, and they disappear after a few moments. That’s why the company has termed them to be ephemeral, as they aren’t as permanent as say a Skype or Facebook posting.
Interestingly enough the app has actually not generated any real revenue, but has become so popular that many investors are willing to take a chance on it. While it essentially clones the behavior of existing messaging services, as well as social media giants like Twitter, the app has started to create a niche for itself amongst an extremely influential market segment.
Young people and especially teenagers have flocked to the app, in spite of the fact that the market traditionally uses more common and popular apps. For instance, this market had long aligned itself with the likes of Instagram and other similar programs. Regardless they’ve now taken to Snapchat and the opportunities for selling to this specific captive market are considered important enough to take a huge chance on something that, thus far, has not actually made any money.
Facebook is looking at this as an opportunity to acquire a website to make money. The social networking site has started to suffer when it comes to younger teens, and fewer individuals in that age group have started to use the service. On the other hand Snapchat has over 350 million messages being sent a day, and many of the users are in that target age group. To make things even better from Facebook’s standpoint, most of these users are accessing the service through a smartphone or other mobile device. That’s extremely attractive to Facebook, considering that this is an important niche for them to fill.
Most commentators have mentioned that Facebook has not done well in terms of its mobile app over the years, so this is a chance for them to recoup losses when it comes to the number of smartphone users. Naturally this number continues to grow constantly as people migrate to both cellular phone systems and tablets.
What it Says for the Industry
The fact that a clone is viewed as a good website to make money with is really shocking to some people, but it illustrates the fact that making a clone site is still a very good bet. It’s a good way to generate funds as long as the clone can find a market to sell to. Even though Snapchat hasn’t actually generated revenue for its founders and surely costs a great deal to operate, the site is getting ready to sell to a major player. Many clone apps make a tidy profit by selling out to the larger players that previously occupied the market in the area that they’re moving into.