How does facebook make its money?

[skinnydowntown679]

Mostly adverts on a pay per click basis (you click on an advert the advertiser pays facebook). If there are 100,000,000 people wordwide using facebook (I forget the numbers, but they are huge) and 1% click on an advert each day, that is 1,000,000 clicks per day. Now pay per click isn't cheap, could be 5 cents a click, could be 10 - say 10 to make sums easier, they take in $100,000 a day from adverts, $36,000,000 a year if just 1% of people click on a 10c advert. With very low overheads from this income most of this is pure profit (ie they have no raw materials to supply, no goods to ship and so on)

You can look at games as adverts too - eventually the games makers willpay facebook