Myspace; Facebook...revenue?

[2gould]

Hey guys;

General question b/c I am curious.

How do sites like Myspace and Facebook generate revenue? They are free to use, and, unless I am missing something, they do not sell a specific product.

Is the revenue they earn from Advertising or from some other source?

Thanks

[strategy]

Hey guys;

General question b/c I am curious.

How do sites like Myspace and Facebook generate revenue? They are free to use, and, unless I am missing something, they do not sell a specific product.

Is the revenue they earn from Advertising or from some other source?

Thanks

They get thousands of members registering daily and millions of hits. I'll let you work it out for yourself.

[2gould]

Eivinas:

Thanks for the reply. I understand that those sites get millions of hits per day and thousands of people registering, so maybe my question was poorly worded. What I am getting at is, how do those "millions of hits" translate into revenue. Are the advertisers looking at the hits per site when they negotiate their ad price, or are they hoping that the viewers click on their ads or both?

I understand that this may be a basic question but I really don't know S*$% about making money online - which is why I am here... I am still reading and researching but I thought I would throw the question out there.

Thanks

[bizboy]

Myspace revenue is about 200 million a year I think and Facebook revenue is about 80 million a year I think, they receive revenue from ads such as banners, text links......myspace may charge $10 for 1000 banner impressions and for text links they may receive $0.10 for click. With millions of members using those social sites daily adds up those millions.

[bzboy]

Myspace revenue is about 200 million a year I think and Facebook revenue is about 80 million a year I think, they receive revenue from ads such as banners, text links......myspace may charge $10 for 1000 banner impressions and for text links they may receive $0.10 for click. With millions of members using those social sites daily adds up those millions.

Thats exactly how its done....usually a set price for advertising, plus pay per click...when some one clicks on the companies add from their site, they get a "click" incentive

[strategy]

Yeah, that's right. It has affiliate programs, but myspace also gets sponsored. They have corporate company's promoting products, movies and films which they pay a big sum for a scheme which includes adding flash banners to pages and giving them a unique profile (with extra editing benefits) and then advertising it on the main page. So sponsorship plays a big part too.

[bzboy]

Yeah, that's right. It has affiliate programs, but myspace also gets sponsored. They have corporate company's promoting products, movies and films which they pay a big sum for a scheme which includes adding flash banners to pages and giving them a unique profile (with extra editing benefits) and then advertising it on the main page. So sponsorship plays a big part too.

Sponsorships ARE Advertising...its basically the same thing...Big corporate companies or small, they are paying myspace and facebook for advertising campaign =)

[2gould]

Great! Thanks a lot guys, much appreciated!