A.Social networking is a daily activity for most of us. Facebook, Twitter all this sites have hundreds of millions of users. One thing I always think about, are these sites are businesses? It’s free to join and you do not need to pay to start building networking. B.If we take a look at the stock of the entire social media network we will find that the companies are valued in the billions of dollars. It’s a booming industry. How do they make money? Reasons
A.First thing, social networks start with funding from Venture capitalists.
a. Facebook & Google are the great example. They can reach very large audience at a very low cost. b. Creative Products & Promotions for example face book’s gifts.
a. Data is the base of any business. It is potentially very valuable for companies’ growth. b. Some companies are “eavesdropping” on conversations, reading what users are saying about their products or competitor’s product. For Example Yelp, Twitter
C. Advertising & fees the most common way for websites to generate revenue.
a. A social networking site like Facebook has millions of active users. Access to that enormous user base is a valuable commodity. b. Charging for membership fees: To use certain features of the site they ask for the upgrade. For example, linked in. Linked in withhold key features from users until they choose to upgrade to a premium account. I hope this gives you a sense of why the market shares are in billions for these sites and where social networks are and where they are going to be in future. It is a growing industry and one can actually start making money from social networking sites. Invest your time learning how to make money with this.
Courtney from Study Moose
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