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How does Facebook make money?

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Anonymous

10y ago
Updated: 8/16/2019

They make money by:

  • Advertisements. Companies and people who run groups or pages can pay to have their company or group/page advertised on the right-side panels of the website and in suggested page lists.
  • Gaming credits. Every time you buy credits or in-game purchases from games hosted on Facebook, they get a portion of the sale from the game developer in royalty fees in return for hosting their game on the website.
  • Featured and sponsored companies. Companies can pay Facebook to be "sponsored" or "featured" on the network. This means they are usually highlighted in a "sponsored" box at the top of your timelines.

You may think "heh, they can't make millions from doing that!". But they do.
Consider this. There is a game on Facebook is played by a million people. The price of a premium feature in that game is $5. If 500,000 of those 1,000,000 players buy that premium feature, the profit is $2,500,000 - of which Facebook gets at least half. Now bear in mind that there are hundreds of games on Facebook and over a billion members (as of January 2013).


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Wiki User

10y ago

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