Insider Secrets: How I Value Facebook Groups as an Industry Expert

As someone who's been deeply involved in the world of online communities, I'm often asked about the value of Facebook groups. Recently, I had an interesting conversation that shed light on this topic. Today, I'm sharing my insights to help you understand the true worth of these digital assets.

The Scenario

Imagine you're approached by a company interested in purchasing your Facebook group. It has between 5,000 and 25,000 members and is fairly active. How much should you ask for? Or, if you're on the buying side, what's a fair price to offer? As an expert in this field, here's my take on the situation.

Key Factors I Consider

1. Additional Assets: Is it just the group, or does it come with a brand, website, or other valuable assets?

2. Industry Niche: The value can vary greatly depending on the group's focus. In my experience, a professional network, like a group for greenhouse managers, might be more valuable than a general interest group.

3. Member Count: While not the only factor, the number of members does play a role in valuation.

4. Engagement Rate: An active group with high engagement is worth more than a larger but dormant one.

5. Lead Value: I always advise considering how much a potential customer (lead) is worth to your business.

My Valuation Formula