How social media and social sites make money?
Investments from venture capitalists.
Venture capitalist are poeple who look for investments that
might make some profit on returns, and it is never bad for an sector when they
have interest, and social media is one of them. They invest in social media
because keep on making profits, which is good for their invesments. Social
sites as google will make upwards of 100 billion dollars in revenue per year,
exlaining why these sites such attractive investments, and venture capitalist
are willing to invest money for future profts.
Through advertising and product promotions
Google makes most of it’s money through advertising. After
businesses, noting clients respond to ads on Google, and make the necessary
purchases; most of them began to pay these social sites to host their
products. These from the greatest revenue for these companies. For example:
out of the 100 billion google made, about 79 billion of it came from these
advertisements (jia, 2010)
By Engaging in E-commerce
E-commerce is a mode of doing business where different
sites offer different services that facilitate these transactions. For example
Amazon one of the biggest retail website integrates it’s function with PayPal,
and other logistics companies available online of facilitate trade. All these
social sites involved in these transaction make a certain profit in form of
of commission from these transaction (Falch et al, 2009).throigh offering
premium actions for their users who want extra services. They do this by who
who wish to send to their friends. Other sites have different levels of
access, and users have to pay to access higher levels in these sites. Despite
the little charge, sites with over 2 billion people might sell quite number
before the ned of the day making quite a profit.
Through monetizin the client data, they get from their
one of the most controversial ways that social sites make
money is through monetizing user data, but it also poses a threat to the
futire of the busines. Social sites sell information about personal data they
claim to keep private, which these companies ise to make targeted adverts
(Leavey, 2013). However, with news of Cambridge Analytica one of the companies
invlved in this breaking out, many people started unsubscribing, which
threatened the future of these entites.