Report: Facebook Making $34.5M in Virtual Item Sales

Menlo Park, Calif. -- Facebook, the Palo Alto-based online social network, is generating about 10% of its revenue from the sales of virtual items that members can give as gifts to one another, according to an estimate calculated by Lightspeed Venture Partners' Jeremy Liew on the Menlo Park-based firm's blog. The company is thought to be selling between $28.5-$43.5 million in virtual gifts annually, or an average of $34.5 million -- while total Facebook revenue is estimated at between $300-$350 million. Liew's study also found that "the vast majority of Facebook gifts are bought from the first screen of gifts in the directory -- almost 80% of the total sales come from the group of the first 20 gifts."
http://lsvp.wordpress.com/2008/09/02/facebook-selling-digital-gifts-at-a-35m-run-rate/
http://www.lightspeedvp.com/