Thursday, October 4, 2012

How Facebook hopes to make money off of 1 billion users

Facebook has reached 1 billion user milestone in September.  Mark Zuckerberg made a brief announcement on Facebook to mark this occasion.  To put this number in perspective, there are about 7 billion global population, and about 32% of them are on Internet.  That's about 2.2 billion people who are on Internet.  This means if you pick an Internet user at random, you'll have about 45% chance that user is a Facebook user.

With this new milestone, Facebook has been announcing their new ways to make money: make money by asking users to pay for services.  Promoted personal post is one such example.  Under $50 gift to share with people is another.

Now there is a way for you to promote your own post to get your friends' attention.
I don't know whether these new monetization schemes are going to work with users.  But Facebook is demonstrating that they are not just looking at advertisement as their source of revenue, and I think they are doing the right thing.

Facebook's main strength is its user base.  As long as Facebook continues to serve user's need and remains as the social backbone of Internet, Facebook will have many chances to get the monetization model right.

1 comment:

  1. It's not enough that their using some ny seo services. Facebook always aims for the money in any best legal possible way. The "promote" button is very appealing to all marketing company who wants to increase their business visibility.