Sunday, August 22, 2010

How does the owner of social networking websites like orkut, facebook earns money?

Advertising

How does the owner of social networking websites like orkut, facebook earns money?
They earn money through in several ways. Facebook obviously has adverts on their page. But they also sell statistic which marketing companies will buy. When you fill out surveys or certain add ons in Facebook that make you "agree for them to access your personal data", they sell this to marketing companies so they can design and target products at specific categories of people.
Reply:Ads on the sites.
Reply:Nominal earnings from: virtual gifts. That's it, for now!


The big thing is member retention and traffic. More of both means greater likelihood that members will click and view ads.





Microsoft would agree. They invested a ton in the company already.





Right now facebook has penetrated the world, but it is already having problems: ad clicks are very, very low when compared to ads shown. So longer out, it needs other revenue sources instead of just simple ad banners and ad sales.
Reply:mainly from advertisers. but like most of the website builders, their main goal is to have someone buy their website. just like youtube. it was bought by google.
Reply:As stated above - advertising.





Facebook also sell gifts you can send to friends at $1 should you chose to buy them.
Reply:join affiliate website like http://www.eyeearns.com , and promote it on orkut, face book or any other network.


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