Month / May 2012

If you’re like me, you’ve had enough of the Facebook IPO story. For tech entrepreneurs struggling to build stuff, the cacophony of recent press is just more noise. That’s why when my friend Andrew Chen posted an insightful analysis of Facebook user data, I was happy to get back to learning from what the company did right instead of debating what its bankers did wrong.

Chen calculated Facebook’s historical ratio of daily active users (DAU) to monthly active users (MAU) and the stats are startling. Since March 2009, when the earliest data is available, approximately 50% of Facebook users logged in daily.

As other technology companies struggle to maintain DAU to MAU ratios of 5% or less, Facebook’s numbers appear stratospherically high in comparison. But what is equally surprising is the consistency of that ratio over time. Despite periodic user revolts in reaction to changes in the site, the ratio remained strangely stable. In fact, the number has risen over the past year and is now hovering at 58% as of March of this year.

Happy to share the first recorded version of my talk describing the Desire Engine. Slides from this presentation are available here.

I hope you find it useful!

Part 1 here:

Part 2 here:

(note: there was a brief break when some content was not recorded)

Today Facebook will sell shares in one of the biggest tech IPOs in history. New investors will gobble up the stock to get a piece of the global phenomenon famously started in Mark Zuckerberg’s dorm room in 2004. But while owning the stock will have quantifiable value when it trades on the open market, few buyers will be able to say truthfully that they understood the value of the company just a few years ago.

Ask yourself candidly, what did you think of Facebook the first time you landed on its homepage? Were you blown away? Could you see how it would fill a gaping need in the lives of nearly a billion people? If you’re honest with yourself, and you’re not Peter Thiel, your answer is probably, “No, not really.”

My wife put our daughter to bed, brushed her teeth, and freshened up before bed. Slipping under the covers, we exchanged glances and knew it was time to do what comes naturally for a couple on a warm night in Silicon Valley. We began to lovingly caress–but not each other, of course. She began to fondle her cell phone, while I tenderly stroked the screen of my iPad. Ooh, it felt so good.

If our nightly habits were any indication, we were having a love affair with our gadgets instead of each other. Apparently, we weren’t the only ones substituting foreplay for Facebook. According to a recent study, fully one-third of Americans would rather give up sex than lose their cell phones.