Facebook Login Hut

This question has been asked a great many times by friends family how does facebook make money? In 2007 Microsoft purchased a 1.6% stake in Facebook for $240 million, how can you justify that much for such a small stake in a internet giant.

Facebook declared that they now have around 50 million active users a day on facebook with around 200 000 joining everyday meaning that the site has a huge scope to potential advertisers. Some major sporting events on television rarely reach that total and companies pay millions to have their adverts in the breaks so having a place where you can have your advert splashed on a computer screen where potential customers will see your add all day long has a better potential of making sales. Advertising is slowly but surely creeping on to the internet for all those preying eyes.

Facebook has it’s own in house advertising program you join as a new member and then add the advertsing application where you add and manage ads and view reports. The advertising on facebook is pretty cool but carries a very low ctr which sucks you have to pay quite alot per click too which also sucks but the potential is there to make money with facebook through their advertising program.

Facebook makes it’s money by charing you to advertise on their site its as simple as that.