How Facebook Earn Money – Behind the scene

How Facebook Earn Money

So how does Facebook earn money – As you know, Facebook is a social networking website and is free to use by everyone in this world. Facebook is not only a social site but its a source of income for most people. Over the past few years, Facebook gets popularity based on the number of people to visit the site.

Most of the Facebook users play games [Farm villa] and indulge in other social activities with their friends and colleagues.

Mark Zuckerberg Facebook Story

Facebook is a far much better business model than any other social network site.

Facebook Business Model

It has improved its targeting skills, including the ability to limit advertising to metropolitan areas as well as the following target variables like – gender, age, profile keywords, relationship status, and much more.

Facebook makes money from the different number of ways. Larger the business success you have, the greater people will try to join your hand and brand new business opportunities will come to exist. Moreover, Facebook put advertisement or products according to users like and hobbies.

In this way, Facebook can target its customers according to their interests.

Facebook Mobile Network

So How Facebook earn money? The answer is simple – Advertisement, sponsored posts and page promotions are the main source of revenue generation for Facebook.

Read Also: 4 elements for perfect Facebook Ads

Facebook is growing day by day even on smartphones also [Android, iOS, Tablets]. Facebook generates most of its revenue from the Advertisements. You can view different Ads on the right side of the screen whenever you logged in to your Facebook account.

The most important revenue channel for Facebook is advertising. There is an option to boost your post on the right side.

Facebook boost button

A button called BOOST on the right-hand side. So that people or users who have not liked your page can also see your Facebook post.

You can boost your post accordingly as per your requirements as to boost your post you need to pay an amount of money.

Also Read: How to hide Facebook friends list from public

Promoting Business On Facebook

In general, Facebook earns money from Virtual Goods And The Gift Shop, Paid likes feature and Desktop or mobile advertisement. Moreover, One of the main drivers of the consumer shift to mobile has been its focus on online videos.

In the past, Facebook has ramped up advertising on the application over the last year and made it possible for both advertisers and users to post videos up to 60 seconds in length.

Facebook made $3.7billion of revenue last year, up to 88% in 2010, with $3.1billion coming from the advertising. The rest income comes from payments and other fees, which have been making up to a large percentage of Facebook’s revenue over the past 2 years.

Other ways that Facebook earns money are from Paid Post Reach, Paid Page Likes, Paid Advertising Campaigns, Paid Post Clicks and Homepage Advertisement, etc.

Also Read: How To Verify Facebook Page Or Business Page.

Facebook Earn Money from Business Credits

The efficient way through which Facebook earn money is from their Facebook Credits program.

Through this Credits program, Facebook users use to buy credits for playing games and virtual goods from the Facebook gift shop.

The Facebook Credits program is the best way for them to earn lots of revenue by giving out credits to their users.