Facebook – Source of Profits: Virtual Goods & Advertising
Facebook is now an global sensation to fair with billions in investments and also over 300 million users at the time of 2009. The question needless to say is how does Facebook generate income, and exactly how they intend to continue to make cash in the near future. After doing a bit of research I was capable to find the subsequent solutions to that question:
* Private Advertising – Facebook offers ad space on it’s website at a cost for everyone.
* Virtual Goods Market – A new concept where you can get virtual gifts (i.e. a picture of your teddy bear) to send one another on the site using the money planning to Facebook. This is now very popular!
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While Facebook relies heavily on the existing advertising revenue stream that lots of other social media sites have started to depend on, they’ve already been in a position to branch out onto new ground. The virtual goods marketplace is something that shows a lot of potential for Facebook and will be viewed being a symbol of circumstances to come.
Digg – Source of Profits: Advertising
The popular social network news site known as Digg has existed for a few years now and contains acquired a number of multi-million dollar investment deals to hold the web site moving forward. Careful observations in the Digg website reveals how they generate income:
* Google AdSense ads located through the site (main page, sub-pages, comments, side-bar)
* Private advertising provided by Digg to customers (main-page, side-bar)
Digg not only utilizes the ads revenue programs provided by companies including Google and Microsoft, but in addition provides its very own advertising service at a cost. Outside of advertising, Digg currently doesn’t offer another service or product available for sale that might be considered a genuine enterprise model it would seem.
Twitter – Source of Profits: TBD!
Twitter is not merely one of the newest social networking services heading to the scene, but it’s also one from the few widely popular social networking sites with no real business structure currently set up. On top of that, Twitter doesn’t use any type of advertising to generate income like plenty of other drinking venues. Twitter has said that a business design will quickly be revealed, but nothing continues to be seen getting the club now. Investors and social websites enthusiasts alike await to view how Twitter will in the end make money online. Some potential ideas discussed have included the next:
* Private advertising on the site – comparable to Facebook and Digg
* Advertising inside the user twitter feeds
* Some type of subscription based service – i.e. $1 / month
It remains to be observed just how Twitter will turn a profit, but many eagerly await the coming decision as Twitter likewise have millions of dollars dedicated to it.
Final Thought – It quickly becomes clear just how large and important of a role advertising plays and can continue to play in these networks we’ve all grown to love. Internet marketing keeps growing rapidly (much faster than many realize), which mean there is certainly and may be a great deal of prospect of some serious money to me made. So if you’re looking to generate income, invest some time in studying on your social networking marketing skills. It could be your ticket to full-time self employment, or at best enable you to launch your following big idea!