How Social Networking Makes Money Essay

A.Social networking is a daily activity for most of us. Facebook, Twitter all this sites fill hundreds of millions of users. One thing I always think about, argon these sites are businesses? Its free to join and you do not need to fall in to start building networking. B.If we take a look at the product line of the entire social media network we will find that the companies are value in the billions of dollars. Its a booming industry. How do they make specie? ReasonsA.First thing, social networks start with funding from Venture capitalists.a. Facebook & Google are the great example. They canister reach actually large audience at a very low cost. b. Creative Products & Promotions for example face books gifts.B.Data archeological sitea. Data is the base of any business. It is potentially very valuable for companies growth. b. virtually companies are eavesdropping on conversations, reading what users are saying about their products or competitors product. For Example Yelp, Twitt erC. Advertising & fees the most universal way for websites to generate revenue.a. A social networking site like Facebook has millions of expeditious users. Access to that enormous user base is a valuable commodity. b. Charging for social status fees To use certain features of the site they ask for the upgrade. For example, linked in. Linked in withhold key features from users until they choose to upgrade to a premium account. I hope this gives you a sense of why the market shares are in billions for these sites and where social networks are and where they are going to be in future. It is a growing industry and one can actually start qualification bullion from social networking sites. Invest your time learning how to make money with this.