How Facebook, Twitter and other sites make money or how they profit from the site they’re running?

Many people use social networking sites to keep in touch with others. they are able to e-mail, chat, play games, post pictures and more. Social networking sites seem to dominate the Web. Most social netwoking sites allow users to create thier profile for free. We tend to forget that social netwoking sites are business. They have employees and they have costs. There are several ways that social netwoking sites earn money.

1) investments from venture capitalists

One way social networking sites manage to make money is through investments from venture capitalists. These investors are essentially making a bet that the site they’re investing in will become popular and will eventually find a way to monetize that success. Getting in early can mean a huge payoff down the road. Facebook is a good example of socail netwoking sites which is managed through investments from venture capitalists.

2) Online Advertising

Online advertising is the new face of marketing and it is also considered the best way to make some money for social networks. The truth is that these sites make money through the millions of eyeballs roaming which are glued to their screens. Millions and millions of pounds are spent on advertisement on these social networks because their huge number of visitors, which at some points and times, can rival the traffic generated by some of the biggest search engines themselves. Companies want themselves to get noticed so they advertise on these websites. There is a race between different companies to appear on the popular social networking sites, so they agree to pay handsome amount for an ad on any of the popular social sites.

Another best monetization method for social networking sites is the subscription of virtual gifts. It is a novel and creative way to earn revenue from these networks and the best example for this category is Facebook Gifts. All of these gifts are not real, but Facebook allows users to send these gifts to their friends.

3) Virtual Gifts

Some of these virtual gifts are for free but you can practically personalize almost everything by paying a meager sum of $1.  This is perhaps one of the most subtle yet clever ways used by the social networks to extort money out of your pockets.

Social networking sites are a growing community, one with millions of new registered users every month, there are tons of money-making opportunities there. If you invest your time learning how to make money with social networking sites, you might be able to make money from social networking sites.

Image : International Money Pile in Cash and Coins by epSos.edcclicensed via Flickr

Article: How Do Social Networks Make Money?

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