How Social Media Sites Make Money Online

Facebook, Twitter, and Digg are three of the most popular websites on the internet. They also are actually three of my favorite sites because they probably are for several individuals too. These now giant social support systems experienced huge amounts of money poured into each one by hungry investors who expect to create a large chunk of change back to say the least. This got me thinking a few days ago on my way home from work, and I found myself asking how can sites like Facebook, Twitter, and Digg make money online? After some research over the next 3 days I was able to find some interesting results that any internet entrepreneur might find useful!

Facebook – Source of Profits: Virtual Goods & Advertising

Facebook has grown to be an global sensation to say the least with billions in investments well as over 300 million users since 2009. The question obviously is the place does Facebook make money online, and how they prefer to keep money in the near future. After a little bit of research I was capable of find the following solutions to that question:

* Private Advertising – Facebook offers advertising space on it’s website at a cost for any person.
* Virtual Goods Market – A new concept where use virtual gifts (i.e. images of the stuffed animal) for you the other person on the website with all the money likely to Facebook. This is now very well liked!

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While Facebook relies heavily on the existing advertising revenue stream that lots of other social networking sites have learned to rely on, they’ve got been capable to branch out onto new ground. The virtual goods information mill something shows a great deal of potential for Facebook and may be seen being a sign of things to come.

Digg – Source of Profits: Advertising

The popular social network news site known as Digg has been in existence for a few years now and it has acquired many multi-million dollar investment deals to keep your website continue. Careful observations in the Digg website reveals just how they generate income:

* Google AdSense ads located through the entire site (main page, sub-pages, comments, side-bar)
* Private advertising provided by Digg to customers (main-page, side-bar)

Digg not merely utilizes the ads revenue programs furnished by companies for example Google and Microsoft, but also provides its very own advertising service at a cost. Outside of advertising, Digg currently doesn’t offer every other goods and services for sale that could be considered an authentic business design it would seem.

Twitter – Source of Profits: TBD!

Twitter is not simply one from the newest social network services to hit the scene, but it’s also one in the few widely popular online community sites with no real enterprise model currently available. On top of that, Twitter doesn’t even use any sort of advertising to get income like a lot of other social sites. Twitter claims that a business structure will quickly be revealed, but nothing continues to be seen up to this aspect. Investors and social media marketing enthusiasts alike await to see how Twitter may ultimately earn money online. Some potential ideas discussed have included the next:

* Private advertising on the webpage – similar to Facebook and Digg
* Advertising inside user twitter feeds
* Some sort of subscription based service – i.e. $1 / month

It remains to be observed precisely how Twitter will turn a profit, but many eagerly await the coming decision as Twitter have millions of dollars invested in it.

Final Thought – It quickly becomes clear just how large and important of a role advertising plays and will carry on and play during these networks we’ve all grown to love. Internet marketing is growing rapidly (considerably quicker than many realize), which mean there exists and may be a great deal of risk of some serious money in my experience made. So if you’re looking to generate income, spend some time in studying through to your social media marketing marketing skills. It could be your ticket to full-time self employment, or otherwise allow you to launch your next big idea!