Many people have been asking me ‘how does Facebook make money’. Here I will explain how Facebook makes money. I won’t be using big grammars or terms so everyone can understand.
Facebook is a website, but since it allows users to chat and connect with one another, you can call it a social media site or just a Social Media.
Mark Zuckerberg, an American internet entrepreneur is a Co-founder and CEO of Facebook Inc. Facebook is the biggest social media site in the entire world with about 2.23 billion active users.
Facebook makes close to $28million daily. You can convert into Naira if you are not conversant with USD.
Many people in Nigeria who lack knowledge about how the system works always think Facebook makes money from their MB (browsing data).
No, Facebook is free to use, and it has nothing to do with your browsing data. The Mobile networks (MTN, Glo, 9Mobile, etc) are the people that chop your data, not Facebook. Facebook even pays for your mobile data (free mode) just to keep you engaged.
How then does Facebook make money?
Facebook makes money from your time spent on their platform. Yes, every time spent on Facebook can be converted into money. I will show you how.
As an internet entrepreneur and a webmaster I understand very well how website owners make their money. I also make money from my websites and mobile apps; only that it is far below what Mark makes.
There are several ways a website can be monetized (make money from website), but as for Facebook, basically they make money through advertisements.
Hold your ears, let me say it again before someone confuses you. Facebook makes money through ADVERTISEMENTS.
They run different advertisements such as self-service, targeted, messenger ads, video, etc.
Remember, I first said Facebook makes money from your time, and now advertisements. It is because your time on website + advertisements = money. That is one formula to convert people’s time into money.
Because many people spend their time on Facebook, companies pay Facebook huge amount to run adverts.
As an internet entrepreneur, I know how much I have collected from people just to place ads on my Facebook Group of about 400,000 members.
So, when you are spending your time on Facebook, you would definitely come across paid ads. Sometimes they write ‘sponsored’ with faint grey text on top left side.
To make sure you always spend your time on Facebook to see those ads while interacting with family and friends, Facebook pays for your data usage (Facebook Free Mode) so no excuse to be offline. Oh! I like that business strategy.
Hope this post help? My name is Humphery, you can follow my Facebook page @nyscinfo where I open graduates eyes on businesses.
Please remember that registration to participate in my forthcoming “December Mega Training (DMT)” is ongoing. I have vowed to show Nigerians legit ways to make millions from the internet. Registration fee is #20,000. Email firstname.lastname@example.org for more information.