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In this article you will learn how Facebook makes money. Facebook is free for the user, but the social network earns money anyway and in different ways.
How Facebook makes money
Facebook is a huge company that earns horrendous revenues. And this is how the social network makes its money:
Advertising: Facebook plays targeted ads tailored to the user and receives advertising revenue in return. In order to be able to sell tailored advertising, Facebook creates user profiles from user data, which is also collected in WhatsApp and Instagram, among others.
- Content: The longer users stay on Facebook, WhatsApp or Instagram, the more data can be stored and used for individual advertising. In order to keep users as long as possible, the company uses a special algorithm, as a former employee revealed, with which Facebook earns a lot of money.
- Apps: Through apps like WhatsApp and Instagram, Facebook gets large numbers of users and thus further advertising revenue. Furthermore, the user pays a small amount for WhatsApp, for example, after one year. Facebook itself develops other apps, such as Poke, in order to be represented in other areas as well.
- Games: Facebook makes money from free online games through additional purchases. In Facebook games, for example, virtual items can be purchased for which players pay small sums of money.
- Selling hardware: Oculus Rift is owned by Facebook. Facebook generates revenue by selling the VR sets. The Facebook Portal also generates revenue for Facebook through the sale of the products.
- Business software: Facebook not only sells advertising and hardware, but also software with Facebook Workplace. The first month is free, after that there are monthly fees.
