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How does Facebook Make Money | Facebook Business Model

Facebook amongst all other social networking websites has become most popular and has reached a wider range of audience all over the world.

This specific social networking website has got more than 800 million active users. This particular strategy makes Facebook become an enormously robust and strong database.

Facebook Making Money Model

Have you ever wondered how does Facebook make money? Besides offering free profiles to its members, Facebook is still able to make money. It is not that complex as you imagine.

Facebook makes money with 3 major things.

Revenue from Advertising

This is the major method used by Facebook to make money. Facebook has collected income in hundreds of millions from the advertisers till now. You can see most of the advertisements on the right side of the Facebook page once you have logged in.

Business organizations and companies market anything and everything on Facebook right from charity happenings to car insurance. Advertisers are very much keen on paying Facebook millions of dollars to advertise their product.

Wonder why? The main reason is that Facebook can easily target accurate demographics that the advertisers are in need of.

For instance, if a life insurance company wants to aim at customers who are 50 years older and more, or if a dentist clinic wants to have new customers within their close circle, say 10-15 miles of their specific city of existence, they both can easily find people to advertise about their product/brand/service on Facebook. You can also earn money from facebook step by step.

The companies are able to reach a wide range of targeted customers easily and they are also able to make more money because of the Facebook ads.

Facebook Applications

You should have heard a lot about a game known as "FarmVille" on Facebook. It is said to have more than 10 million players from various parts of the world. These applications are made by other business organizations and companies. For instance, FarmVille was created by a company called "Zynga".

They have also created various other game applications such as Mafia Wars, Café World, and lot more. They get the space from Facebook on rent basis and so they pay Facebook for that purpose.

This is the second most important way that Facebook follows to make money. Since there are millions of players playing all these games, Facebook generates more amount of money by renting space to them.

Revenue from Gifts

This is another method followed by Facebook to earn money. You can use the application of the free gift on Facebook to send gifts to your friends on their Birthday, Wedding Anniversary or for any other occasion. Do you know, how does twitter make money?

It will actually cost you less when you send a gift through this method. However, it sums up to a bigger amount for Facebook when most of their users send gifts. Comparatively, this method is said to be one amongst the small ways used by Facebook to earn money.