How do social networking sites like Facebook, Myspace, Twitter make money?
Their services are free to the people. I am not a member of one of these sites yet.
If they aren’t making money, how can they afford to provide their services to millions of users worldwide? What’s the point? I don’t think someone would do that just for fun.
goldy k, how do the bigger companies lure younger generation to make money for them?
Hi Mystic Paradigm.
Become a member of one of those social networks and you will see how they make money.)
Firstly FaceBook makes money via its Advertising program. If you have a web site or a company you may create a FaceBook page and advertise it on a CPC basis. So Facebook earns money from allowing its members to advertise their companies or web sites. Secondly FaceBook makes money from selling "Gifts" to members. If you want to congratulate someone you may send him a gift. You pay for a virtual gift normally it’s a picture of a toy or anything else. Thirdly FaceBook earns money from investors. As far as I remember Microsoft invested about $250 millions.
There are a lot of other ways how to monetize a social network web site. No one will share this kind of information and you need to "dig" it by yourself.)
Regards, Tim.
P.S. You may read more about "How to make your website a profitable venture" here: http://www.skalfa.com/press/how-to-make-your-website-a-profitable-venture.html
Steve Says:
some don’t
last i hear twitter is not making money
and facebook is only making a pitance
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Posted on October 6th, 2009 at 4:57 pm
goldy k Says:
They can get partnered with some other big company and share the profits. Like many months ago, Microsoft owned the part of facebook and earning the exposure they got from facebook audience. Like myspace has shares with another big company.
All these big hotshots make money by luring the younger generation to make money for them.
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Posted on October 6th, 2009 at 5:44 pm
Ed Atun Says:
They get money 2 ways. Advertising on their site. And money from investors who want to find a way to "connect" to a young audience. Probably for future advertising or to turn those current "members" into future "members" in whatever the investors are selling. it is a huge gamble on the future.
Twitter has still not figured out how to make any money. But they just got a huge chunk of cash from investors.
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Posted on October 6th, 2009 at 6:07 pm
Tim Says:
Hi Mystic Paradigm.
Become a member of one of those social networks and you will see how they make money.)
Firstly FaceBook makes money via its Advertising program. If you have a web site or a company you may create a FaceBook page and advertise it on a CPC basis. So Facebook earns money from allowing its members to advertise their companies or web sites. Secondly FaceBook makes money from selling "Gifts" to members. If you want to congratulate someone you may send him a gift. You pay for a virtual gift normally it’s a picture of a toy or anything else. Thirdly FaceBook earns money from investors. As far as I remember Microsoft invested about $250 millions.
There are a lot of other ways how to monetize a social network web site. No one will share this kind of information and you need to "dig" it by yourself.)
Regards, Tim.
P.S. You may read more about "How to make your website a profitable venture" here: http://www.skalfa.com/press/how-to-make-your-website-a-profitable-venture.html
References :
http://www.skalfa.com/press/how-to-make-your-website-a-profitable-venture.html
Posted on October 6th, 2009 at 6:23 pm
Andrew Z Says:
Good question.
Actually, they can make money easily if they want, as a website, traffic means money in someway, they can put ads on their home page, and easily make millions of money. but they’re really big company and have big plans, ads might not the best option, like facebook, they also make money through Virtual Items or online games. For twitter, as some big company alreay treat it as a necessary promote tool, so they might pay for that in the furture.
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Posted on October 6th, 2009 at 7:12 pm
Rea Says:
By using Ads…
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Posted on October 6th, 2009 at 7:18 pm