Facebook is the social networking giant and reporting more than 900 million users who uses it for free, yes it’s totally free you also knows that but then also you comes to know that it raises in millions of dollars and offers a very heavy pay cheque to it’s engineers. So can it be possible for a company to earn the wealth ? If company is not charging from it’s users for using the world class services like interacting with the friends and family, updating the messages, uploading the videos and pictures that might also become another burden for the company in increasing their server bandwidth uses adding the cost on the name of hosting their website there.
Yes it’s possible to make money online even if any company or individual giving out the free services by using the various options like showing paid advertisements, offering members area, selling products, promoting paid programs either of own or of the third party, asking for donation (like wikipedia did), blackmailing the users, giving consultancy and so on.
How Facebook Makes Money
Now come back to the main question that is how facebook makes money even if it gives all the services for free ? And my answer is the advertisement, virtual credit sells, gift sells, anti – virus sells and inviting investors to invest into the company as described below in this article.
#1. FB sells Virtual Credits to Make Money
Famous applications and the gaming apps on this social networking site offers a variety of entertainment for you and you pays to buy their virtual products and hence they makes money and facebook gets commission simply for helping in fixing a meeting between a buyer and seller to boost overall business.
Let’s take the famous social game FarmVille from the Zynga what is also available on Facebook and most famous from the FB only and now makes around $200-400 million per quarter by selling the virtual goods and pays $100-150 million to the facebook only.
#2. Paid Advertisement helps Facebook to Makes Money
This point is not hidden anymore and you might have seen in the sidebar of your facebook account that shows advertisement, so it is the most basic form of making money from the advertisers for showing their product or services directly or indirectly to help them attain their customers helps facebook to make money online and yes of course it is still the biggest source from where company generates revenue.
Now a days the company motivating even the individual users to promote their updates if they have the facebook page for their business linking with their business blog or site and no doubt this will increase there revenue a lot before showcasing their next business results to convince the investors who also know it as FB because FB is the symbol of facebook listed in NASDAQ.
#3. FB sells Gifts to Increase Earnings
No not directly, here also those application maker comes in action and sells their gifts helping themselves and their host to make money out of the global users pocket. Again those virtual credit comes in action what people buy paying the real money and send the gifts to their friends and family on special occasions like the Holi, Diwali, Eid etc
#4. Anti Virus marketplace Adds Money for Facebook
Last time when I was working on one of the most popular article ever about facebook timeline cover providers then got a news from the trusted source yes the facebook official blog itself that it is going to open a marketplace for the Antivirus softwares to give first 6 month of free subscription to the facebook account holders. So how the AV Market helps it to add extra revenue ? Actually the marketplace gives only one time access to have a free Antivirus and then upgrade the same, means a business and that also gives a great commission towards the host of the marketplace.
#5. Inviting Investors to Invest will help FB to Raise Money
Recently the Facebook Inc. gone public where they also surrendered their privacy unintentionally because when a company goes public to invite the investors to invest their money then it become a necessity to disclose all the secrets of the business to be documented for investors study and then making investment with the hope of getting profit on a better business expectations.
Now when facebook will disclose the news regarding their expansion people will invest into the company to help them collect the money for using the same to fulfill their funding requirement.
Hope now you are aware about the facts how facebook makes money even they are completely free for users. If still you don’t have your question answered please feel free to use the comment section below and let us know exactly how we can help you and let you understand the procedure of this business model ?
If you are aware about some other ways how facebook makes money please feel free to share the same with us, but don’t come up without any trusted source.