Making money on a free website.

**JackMcArdle** · 06-08-2009 12:10 PM

So, Facebook is worth around 700million. But I was wondering, because Facebook is a free website, and free to use, how does it make this amount of money?

Is it through advertising etc?

**The Stealthy One** · 06-08-2009 12:46 PM

Yes, Facebook makes its money through advertising revenues.

EDIT: Your information is a little bit incorrect.

Facebook the company is value at $8 - $10 billion. Revenues were about $200 million last year and will be something higher than that this year.

**PsiPro** · 06-08-2009 02:37 PM

Like The Stealthy One said they make money from advertising. As the company is still private (SEC exemption aside) they do not publish financial data. The last 'leak' I know of was of the 2007 financial.

Those numbers said, quite simply, that the company was loosing money (and I would believe it still is). The site is valued at $5-20 billion because Microsoft bought 1.6% of the company for $240 million in 2007. The fact that they control the vast majority of social networking is their greatest asset, and what they are selling.

**JackMcArdle** · 06-08-2009 02:39 PM

Wow! I never knew it was worth Billions!

Thanks you two

**N.V.Wells** · 06-08-2009 04:45 PM

Indeed Jack. Mr Zuckerberg is a very rich young man indeed!

**williams89** · 06-08-2009 06:16 PM

When your website is seeing millions of visitors a day then with out a doubt you will bring in some serious cash. Maybe free websites are easier to make more money from dont you think?

**chuff1026** · 06-08-2009 06:29 PM

Originally Posted by williams89

When your website is seeing millions of visitors a day then with out a doubt you will bring in some serious cash. Maybe free websites are easier to make more money from dont you think?

not sure if they are easier
u need a hook
the views are not all
its the stickiness of facebook...the average use is 160 hours a month and appose to google news thats 13 minutes per month

**williams89** · 06-08-2009 11:49 PM

well everyone loves free things. so i thinks its more attractable. i mean if you have a paid membership site and actually get sign ups then you'll make good money.

**chuff1026** · 06-09-2009 02:46 AM

but these guys have the most popular free website on earth
and they are losing money
yahoo loses money
i think its easier to get hits
but i beg to differ on the fact that its easier to make money
:S
google went in with a strategy to make money
these guys are awesome at attracting users
they helped obama with his compaign for crying out loud
but the facts tell us that making a profit with free sites aint that easy

**Gene** · 06-09-2009 06:44 AM

I would guess most of that comes from advertising.

**ellaanderson** · 06-09-2009 07:56 AM

I guess they are through commercial advertisements.

**Lambo** · 06-09-2009 08:00 AM

yeah the its a free website but attracts millions. Also its a very unique conecpt. Social networking was around before facebook, but the user interface of facebook was very unique and they chose to penetrate the university student market which is exceptional for word of mouth advertising.

It spread like wildfire and soon enough he was a multi-billionaire.

but im sure the coding was a pain in the ass to master! no pain no gain