how do websites like facebook make money?

[Rob Himself]

i mean i know its mostly through ads and what not, but like how do u get the ads? does the site
have to become popular first and then people come to you to purchase ad space? or do you contact different companies offerring ad space?

also ive heard that just the amount of visitors alone can bring in money, but i dont understand how that works since it doesnt cost anything for visitors to visit the sight. like where does that income come from?

its for a report, and theres just a few things i dont really get. if anyone can help me out at all that would be great, thanks

[Ryan F]

people advertising on them because they have millions of visitors

[:P]

it probably has deals with the internet providers like they get a proportion of there profits fr every million streamers thy bring in

[Sangeeth]

Why do companies make ads? They want to make their product popular. How can they do it? By introducing it to more and more people. As soon as more people came to know about it, their product is getting more popularity. Facebook or similar websites get over a million hits every day. So if a company makes an ad there, lots of people around the globe came to know about it at the same time. It's like placing a huge advertisement poster in a very crowded area. So it is a great benefit to the company.

[Dr Who]

I can help on part of this. Imagine building a fancy restaurant on a gravel road with very little traffic and no towns for 40 miles. Who is going to show up? It is not like being on an Interstate. Do you place a big billboard off an interstate highway or on a gravel road with couple of cars driving on it each day? Would you want to pay more for the billboard on a rarely used gravel road or off a major interstate highway? It costs nothing for the motorist or passengers to glance at the billboard. The person(s) that paid for it believe that it is better for their business. Same reason why bars and liquor stores are given free signs from the alcohol distributor. Same reason why people had out business cards. The card may never be used but it might some day. I used to take a bus to a local bar. An attorney/lawyer would stop by for one drink. He always passed out his business card to people he did not know. He helped out plenty of the regulars. And he would tell his clients and yell across the bar and point at me, smart one is that guy who takes the bus.

bringing in the money
what does it take to get someone to pull out their wallet?