How Exactly Does Facebook Make Any Money?

In all those hours of checking out your family members, and looking at pictures, have you ever asked yourself, how does companies like Facebook earn money? Well trust me when I say this, Facebook does make money! Heaps of it! Let’s dive deeper to find out exactly how.

Facebook makes cash these 3 ways:

Facebook Ads – Facebook Gifts – Facebook Programs

Facebook Advertising

The majority of Facebook’s money intake comes from ad earnings. Infact, in 2010 Facebook netted in excess of 1.9 million dollars. Not bad for an organization that began in a dorm room.

If you’re asking yourself, where every one of the advertisements are, they’re on the upper right side of your home screen.  On any given day, you’ll see all kinds of ads on the system. From Nascar races, to political rallies, to major appliances, and huge rock groups; just about everything under the sun is being marketed in Facebook these days.
   
Suppose a local plumber wants to have an ad on Facebook, he would probably want to concentrate on a particular town or area of town.

As a result of focusing on just the right people, businesses are easily able to touch the future clients that they need the most. Many companies are generating millions of dollars yearly only using their Facebook ads.

Facebook Gifts

This is often another way that Facebook earns money. Have you ever sent a gift to a Facebook buddy because of their birthday, Valentines Day, or anything else? These cost a tiny amount every time you send one, however it accumulates when you have five hundred million people sending gifts!

Relatively, this is actually one of the less significant ways that Facebook pulls in revenue.

Applications

Have you heard of a little online Facebook game called FarmVille? I am guessing you might have, mainly because it has got ten million avid gamers around the world. How exactly does Facebook benefit from apps?

Computer software companies like Zynga, the company that invented FarmVille, and even Mafia Wars to name a few, pay Facebook to host their applications. This process operates a lot like how Facebook advertising operate, where the software company will get billed each and every time a new person signs on to their particular app.

This is a win win for the software companies and Facebook.  The average Facebook user spends about around 30 minutes every day on Facebook, using a great deal of this time in order to participate in games or use various other Facebook apps.  

These are only a few of the present ways in which Facebook employs to make money. Do not make the mistake in believing that it will stop there. The people at Facebook continue to innovate,and broaden their own system and user interface to make an even better experience for their subscribers. As long as they are doing that, businesses, marketers,and application developers will continue to flock to Facebook, and Facebook will continue to generate money.

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