Snapchat Turns Down $3 Billion



@CC you completely missed my point - and I am not communicating great today.

::emp::
 
-God- said:
Went to their website and the message was so clear I still don't know what it is, what a waste of bandwidth that site is. Turning down $3b though? Here's to them doing a Groupon, idiots.
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Me neither. Can someone explain to me what their business model is?
 
OFiSrd3.jpg
 
CCarter said:
Why are you guys so pissed at Snapchat and calling them stupid? LOL at all the people that think it's a website.

Dude either wants more than 3 billion, sees itself as a Facebook killer, OR maybe being bought by Facebook would go AGAINST the EXACT reason people are going to SnapChat, cause it's not connected to Facebook, like the way it swalloed up Instagram.

This should ignite your own fire inside to create something popular since you can see people are investing in companies that are trendsetters. Some of you guys sound like the old man on the porch, "God damn kids! Get off my lawn". What Snapchat is doing is taking "social media" less "social" and more in the control of groups for privacy. Why you guys are angry is beyond me.

I'm a little sad that this kid has the ability to turn down $3 billion and I may not currently have that same ability, but as far as a business move I think it's a great move if you want to be on a level playing field with Facebook, Twitter, etc. It's not a Groupon, cause Groupon's business model revolved around deep discounts for businesses that ended up only hurting those same businesses. People use Snapchat to communicate, that's completely different then looking for discounts cause your cheap. No one is hurt in the end. There is only potential with Snapchat, where-as Groupon is a one trick pony who's time was up before the IPO.

Facebook is only interested in it to swallow it up since it has plateaued and wants to stay relevant. just like Facebook turned down $1 billion from Yahoo and now it's at a position it's dominating Yahoo. The only reason anyone is talking about Yahoo is cause their CEO is hot, other than that, they're pretty much done as a tech company. This can be seen as a similar point in history for Facebook, when they're no longer cool and even gets their money turned down. History repeating itself. Since all the young kids are on there, and old people are doing nothing but dying, it's an indicator of the next wave of tech companies.

You have to think bigger than SEO or whatever you are in. If you can create a communication channel or something REALLY new to the field that can become popular, then you've got a chance. Why not target something as a more professional version of Snapchat for individual team members or corporations? It'll be copying Snapchat but it's better than sitting around creating another SEO project while waiting for the next Zebra update - The Google Zebra Algorithm Update and What You Can Do To Prepare

Don't be mad people, be happy that investors are out there still willing to invest in new ideas and your ambition is all that's in the way of becoming one of the giants of industry.​
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I thought everyone thought like this...
 
Fiver said:
Me neither. Can someone explain to me what their business model is?
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Their business model revolves around underage teens being able to send nude pics to each other under the premise that the pics will automagically disappear in less than 10 seconds from the recipients phone. Unfortunately the technology has already been hacked (Snaphack) so those disappearing nudes are no longer disappearing.

They make money by raising money from investors.
 
Unarmed Gunman said:
Their business model revolves around underage teens being able to send nude pics to each other under the premise that the pics will automagically disappear in less than 10 seconds from the recipients phone. Unfortunately the technology has already been hacked (Snaphack) so those disappearing nudes are no longer disappearing.

They make money by raising money from investors.
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Except, this isn't true at all (minus the fact they don't currently generate revenue). It just shows a lack of understanding of how the majority of people use the app. The primary demographic that has at some point used it for the nude pix purpose are older (i.e. mid-late twenties), and it's still a small proportion. That same old bullshit is just used by the press with the odd horror story to generate clicks and reads.

Is Snapchat only used for sexting? We asked 5,000 people to find out. |

Saying Snapchat is used primarily for sexting is akin to saying that SMS or MMS is also primarily used for the same thing.

It's a communication medium used to sharing in-jokes, random moments, etc.. Stuff that you wouldn't want to have saved forever, but that'll make someone laugh or otherwise remind them you do actually think about them.

E.g. I'll send someone a picture of something that reminds them of something funny that happened a few weeks/months/years back, or to give more depth to something that'd usually be a text message (e.g. a picture of an empty vodka bottle, empty wallet, strip club poster and a tube of ibuprofen sent to a group of friends you went out with conveys a lot more meaning than a text message saying "I feel like shit after last night"). I wouldn't want to share that photo on Facebook though.

Of course it's far more relevant to a younger demo. than older demo., but there's definitely money to be made targeting young people. Brands could also target people via the platform in clever ways too if they embraced it, and there's countless extra features they can develop that they'll no doubt be able to charge people for. Think image filters (a la instagram) before sending snaps, longer snaps... Coca-cola sending everyone on snapchat a 10 second clip of their christmas advert... That's some serious ad dollars (they'd just have to be really careful about what they accepted and how often they ran ads like it to avoid overloading users).

I can imagine many a 50-something year old woman snapchatting all her friends a picture of the cat doing something cute, or a new dress she's bought, or whatever, incidentally.

I really fail to see how people are struggling to see the huge potential in this. Facebook clearly see it.
 
Signing-up!!
The sign-up UI is neat.

Classy.

Also, FB only offered them what the current VC have valued it. Maybe less.
SO hold your horses.
 
Awesome stuff, and especially having the balls (or retardation) to turn down that amount of money.

This reminds me of one of the hard fucking lessons I've had to repeatedly learn.. Stop focusing so much on the development aspect of a product, especially when you have no game plan after it's finished.
 
mituozo said:
Except, this isn't true at all (minus the fact they don't currently generate revenue). It just shows a lack of understanding of how the majority of people use the app. The primary demographic that has at some point used it for the nude pix purpose are older (i.e. mid-late twenties), and it's still a small proportion. That same old bullshit is just used by the press with the odd horror story to generate clicks and reads.

Is Snapchat only used for sexting? We asked 5,000 people to find out. |

Saying Snapchat is used primarily for sexting is akin to saying that SMS or MMS is also primarily used for the same thing.

It's a communication medium used to sharing in-jokes, random moments, etc.. Stuff that you wouldn't want to have saved forever, but that'll make someone laugh or otherwise remind them you do actually think about them.

E.g. I'll send someone a picture of something that reminds them of something funny that happened a few weeks/months/years back, or to give more depth to something that'd usually be a text message (e.g. a picture of an empty vodka bottle, empty wallet, strip club poster and a tube of ibuprofen sent to a group of friends you went out with conveys a lot more meaning than a text message saying "I feel like shit after last night"). I wouldn't want to share that photo on Facebook though.

Of course it's far more relevant to a younger demo. than older demo., but there's definitely money to be made targeting young people. Brands could also target people via the platform in clever ways too if they embraced it, and there's countless extra features they can develop that they'll no doubt be able to charge people for. Think image filters (a la instagram) before sending snaps, longer snaps... Coca-cola sending everyone on snapchat a 10 second clip of their christmas advert... That's some serious ad dollars (they'd just have to be really careful about what they accepted and how often they ran ads like it to avoid overloading users).

I can imagine many a 50-something year old woman snapchatting all her friends a picture of the cat doing something cute, or a new dress she's bought, or whatever, incidentally.

I really fail to see how people are struggling to see the huge potential in this. Facebook clearly see it.
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That's great but you're ignoring one very important thing. The entire thing that made Snapchat unique (and so popular) was that the pics disappeared after 10 seconds, and that is no longer the case. So now it's an app with no revenue that sends pics that may or may not disappear after 10 seconds. Great product differentiator, clearly worth far more than $3 billion.

Best of luck to the worlds first $100 billion dollar almost disappearing picture taking app. Also, I'm utterly shocked that more people didn't freely admit in that survey to using Snapchat to distribute child porn. Shocked I tell you.
 
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I agree the model is filling a need and has potential, but still... it isn't making shit yet. More money is made on the speculation of potential rather than hard numbers these days. I completely agree with that saying in this thread, "Don't bother monetizing because it'll make your business worth less." It'll be interesting to see how it plays out.

And, CCarter, we're not "really" mad, not in the rage inducing, i'm-taking-my-cones-and-going-home kind of way. More like, "Why didn't I think of that?" and "3 billion can buy a lot of cones" kind of mad.
 
I just finished college, and saw the complete relevancy of snapchat among younger crowd.

Snapchat, IMO, is a hip and more fun way of texting. Sorority girls are snapchatting their favorite makeup products to their friends...and guys are tracking to mack on girls snapchatting their abs. Parents are now swarming on FB, so apps like Snapchat are the new and "cool" thing.

It may be a flash in a pan, but it's hot right now.

The key is to determine what exactly the owners/founders want. Do they want to get the most money from their app right now? Do they want to grow and compete w/ FB and Twitter?

I don't think snapchat has the potential to compete, b/c sites like Facebook aren't just mobile apps and are prevalent is the business world. Too many mobile apps (Tinder, Words with friends, DrawSomething) are up and down...so I won't be surprised if they are a non-factor in 3 years.

That being said...congrats to this troll for creating a (supposed) $3 billion dollar app.
 
Why not do this:

1. Create snapalternative
2. Make it popular
3. Sell for $1 billion in 5 years
4. Profit
5. Repeat using a case study
6. Wrap it up and sell as a "make money online" blueprint
7. Profit ???

:D
 
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