Apr 2, 2012

How much does Pinterest actually make?
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Written by : Tom George| 0 | Pinterest

Via Scoop.itinternetbillboards

What kind of revenue numbers would justify Pinterest’s $200 million valuation? Atlantic writer Alexis Madrigal and others have used back-of-the-envelope math to explain this valuation. In his article, “Why Pinterest Is Playing Dumb About Making Money,” Madrigal puts Pinterest’s annual revenue at $45 million a year. Based on statistical modeling, I believe there is only a .25 percent chance that Pinterest is making that much money.Considering all possible scenarios — not just the most optimistic ones — let me show you why and how much Pinterest earns.

Madrigal calculates Pinterest revenue from its only known source — affiliate fees from SkimLinks. “So, Pinterest has 10 million users,” writes Madrigal. “Let’s say that the average across all of them is that they buy items valued at $10 in a month through affiliate links on Pinterest. That’s $100,000,000 of sales for which Pinterest would get credit. That’s $3.75 million in monthly revenue, or $45 million of annual revenue.”
Via gigaom.com

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Tom George

Founder and CEO of Internet Billboards. A futurist and serial entrepreneur, as well as a professional fitness trainer, martial artist, and business strategist. Helped to develop inbound advertising. An avid content curator who enjoys finding those digital gems out there in cyberspace and sharing them with others.
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Tom George

Founder and CEO of Internet Billboards. A futurist and serial entrepreneur, as well as a professional fitness trainer, martial artist, and business strategist. Helped to develop inbound advertising. An avid content curator who enjoys finding those digital gems out there in cyberspace and sharing them with others.

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