Is Facebook making money and can YOU make money on Facebook?
The answer is yes to both.
As you probably know, Facebook is a social networking tool used by many people; be it students in college, office workers or teenagers - basically anyone who likes to contact and make friends via the Internet.
As a business Facebook is actually making a surprising amount of money - it has started making a profit ahead of time. It is now cashflow positive according to the latest company announcement. But it is a private company so obviously if you don't work for the company or if you are not an investor it is difficult to know exact figures. But investors have valued the company anything up to 10 billion dollars or more. Apparently they are making 500 million dollars in revenue this year and this revenue is mainly through advertising. It has reported it has 300 million active monthly users.
So Facebook is making money, but how do you make money on Facebook?
One way, is you advertise on Facebook and promote your affiliate offers or your company's website. And the benefits of sites such as Facebook and MySpace and other social networks is you can target to a very specific demographic even to a city level to an age level, which can then massively increase your return on investment because there is a lot less wasted advertising.
That said, some companies actually set up certain Facebook groups - some of these Facebook company groups or products become very popular and a lot of people subscribe to the group and like to hear updates about products, offers or general news, whatever it may be. This clearly helps Facebook in increasing its advertising revenues as branded Facebook groups help advertisers find consumers for their products and service. A lot of large brands have their own 'official' Facebook groups such as Coca-Cola, Microsoft Office Users Group, Google.com even Formula One Teams have a page such as the Vodafone, Mclaren Mercedes Official page.
So then you have a kind of fan club in a way who are a lot more likely to rush out and buy the latest product or your latest offer. But like all these things when it comes to social marketing be careful about not being 'spammy' - be involved with the conversation, say useful things and also in return for that occasionally be a little promotional.
And with a lot of this when you are doing Facebook marketing, Twitter marketing even MySpace marketing this can be very time consuming. But it depends of course on your business, whether you are happy to do it all yourself, or you could hire someone freelance through maybe a service like oDesk.com to manage that for you.
If you are running a business you may not necessarily want to be sitting at a computer all day typing 140 characters into Twitter because that may not be hugely profitable and could suck a huge amount of your time. But maybe hiring someone for 5-10 dollars an hour (depending where they are in the world or the rate they agree upon) that could work quite well and could end being quite a return on investment - so it is something to think about if you are considering the potential of making money on Facebook, Twitter or MySpace.
Dominic Allport has been a professional writer for many years. Currently he specializes in writing about information publishing and internet marketing. He is co-founder of http://www.SevenFigureBlueprints.com a website dedicated to helping current and aspiring home-based and small business owners.
Click through to claim your FREE Membership and discover exactly how people just like you are making small investments into their own new, or existing, business and turning it into six or even seven figures in income: http://www.SevenFigureBlueprints.com
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