How social networking sites make money.

Today social networking sites like Facebook, Twitter, LinkedIn, YouTube, Instagram, Tumblr, Google+, etc are part of our life. We feel connected ourselves with society, friends, family, professional groups by making use of these social networking sites. And gradually by using, we become dependent on this site that we cannot think our life without them.

Counts of social networking sites users increases in millions day by day. And to manage these sites on large scale things like employees, cost, tools, machines, etc are required. At the end social networking gives us happiness and they are meant to be made for business perspective only.

Below mentioned are some points that tell us how these sites make money:

  • Investments from venture capitalists. For example: When any internet startup site becomes popular, large companies buy these sites by paying good amounts.
  • Advertising Models and Ecommerce:  80% of site profit directly comes from advertisement world.
  • Online buying of Facebook Gifts and playing online paid games contributes in income.
  • Technology used like geo – location in networking sites.
  • Paying customers. For example: LinkedIn has an option to buy a premium package if you want special privileges. It’s totally paid service and contributes in source of income in social networking sites.
  • Mobile apps: Famous mobile apps like Facebook, Instagram , LinkedIn, Google search, Skype, Twitter, Wordpress, etc are also contributes in making money as 32% mobile usage is done for social apps and 50% for games.
Hope this article gave you the ray about making money from social networking sites.

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