We all know Facebook has a massive user base with over 300 millions users being regular visitors every day. Facebook is the largest, biggest and probably the most envied Social networking website in the world. Also very interesting unlike other social networks it has not been acquired by any other big fish.
So that warrants a question which is how does Facebook make money?
- If Google can sell ads in the form of sponsored links and Adwords why can’t Facebook? Facebook surely does earn money by selling advertisement real estate. It is often done in a targeted way as Facebook knows what we like thanks to their “Like Button“. 😛
- Selling Gifts on Facebook which users can send to their friends. This also is a way to make money for Facebook.
- Selling virtual rewards on gaming apps like Mafia and Farmville. There are addicts to pay real money to buy influence and rewards points. Much of this money might go to the app developers but I am sure some of it trickles down to Facebook.
- Finally Facebook also attracts a lot of investors who invest in the company to keep growing as there any with great potential always attracts a lot of money. But such investors are usually who will bail out at some point of time or the other.
So these are the ways Facebook makes it’s money. I do not think it is a lot that they generate but must be a decent amount as most people still expect Facebook to keep growing and earning revenues. It also turned down an 1 $ Billion offer from Yahoo as it was confident of earning enough by itself without compromising on its independence.