Website Critique - how does facebook earns? from Anonymous: MarketingProfs Question 24827

Topic: Website Critique

How Does Facebook Earns?

Posted by Anonymous on 7/21/2008 at 9:32 AM ET 25 Points

how can facebook earns and heard tht he paid $200,00 foor just domain name how come please explain?

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Posted on 7/21/2008 at 9:45 AM Member

Facebook earns revenue through advertising. They have banner ads on every page (especially the application pages they allow anyone to build for free), "gift" product tie-ins, and ads that appear in users' newsfeeds. These are customizable to target users based on age, gender, keywords, location, etc.

Since they allow users unlimited photo and video uploads I'm sure their data hosting costs are much, much higher than whatever they pay for a domain!
Posted by Levon on 7/21/2008 at 11:24 AM Member

How does a free-to-air TV channel earn its revenues? Advertising.
Posted by Frank Hurtte on 7/21/2008 at 12:49 PM Member

Advertising and the increasing value of gaining personal access to a very lucatrive component of the economy.
Posted on 7/24/2008 at 4:24 PM Accepted

In this social networking site era you will need a unique concept and really good usability (with lots of flexibility and features) in order to pull a sizeable membership. MySpace and Facebook have tons of features; see something like LinkedIn for a simpler, more targeted concept.

And also No, Facebook does not charge its members anything-- even for unlimited video/photo hosting. All their revenue comes from advertisers. And with their excellent metrics for targeting specific consumers it's not hard to see why!