Facebook-A Money Making Business?

by Noc Team on September 16, 2009

Courtesy: Guardian UK

Courtesy: Guardian UK

Facebook has more than 300 million users worldwide. Facebook is one social networking site where you can find every individual whether it is your childhood friend (a long lost buddy), your school teacher or even your boss. It does not matter in which part of world they are. And did you know that this number is equal to entire on-line population in China and is equivalent to Europe’s ten largest countries combined.

With additional 50 million people becoming a Facebook member the site is growing everyday.

“It’s a large number, but the way we think about this is that we’re just getting started on our goal of connecting everyone,” he wrote on Facebook’s blog.

After five and a half year Facebook is finally making money and thus is referred to as cash flow positive.

“Earlier this year we said we expected to be cash flow positive sometime in 2010, and I’m pleased to share that we achieved this milestone last quarter,” said Zuckerberg. “This is important to us because it sets Facebook up to be a strong independent service for the long term.”

Now Facebook can be declared as a profit-making company and being “free cash flow positive”. This indicates that a stock market launch could finally become a possibility.

Earlier in 2007, Facebook launched and shut an advertising program called Beacon as reported by Wall Street Journal. But today in 2009, Zuckerberg and company now seems to have settled on a number of ways to bring in the money.

First of all anyone who has cash can advertise on Facebook. This includes all the Facebook users, who try to direct you to their profiles, fan pages or elsewhere in order to get you to follow their cause or buy their product and outsiders as well.

Secondly, virtual goods prop up all kinds of on-line games, and nobody ever thought ring-tones could be so profitable. There are also the gifts and other virtual property that users can buy and give to each other. This still seems like a crazy idea to some people, but it can prove a highly profitable business in the right circumstances.

Thirdly, Self-serve advertising allows marketers to decide precisely who they want to appeal to, and buy ads to put in front of users who fit the profile. This has already proved appealing for some big brands.

In addition, Facebook is known to be working on a micro-payments system (no doubt a money-spinner if they can pull it off) that will almost certainly allow it to take a slice of any transaction that takes place through the site. Whatever it is, there appears to be a business here.

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