My names are berthold victor and I am writing this article based on my experience using facebook..I have been using facebook over 5years now since 2008.
The level which facebook was on 2008 compared to now is very different..First of all facebook has more users now compared to 2008..According to a recent analysis, facebook has almost 1.06 billion monthly active users (MAU) as of December 31, 2012..The number of users has increased and is continuing to increase everyday..
Here are now my reasons as to why facebook will be making more money FOREVER :)
As you may know,in facebook,you can set up a fan page,business page etc.. And for you to get fans/people to like page,you have to reach to them..You asking your few facebook friends and family members to like your page won't be enough..
So what do you do to reach out to people??You pay..Thats right,you have to 1. PAY FACEBOOK,so as to reach out to people to like your page..The cost can start from $1 to even $1,000 dollars or even more..So many big companies use facebook to advertise their products and these companies pay thousands of $$ monthly,weekly or daily,depending on their budget..
Now,thats the big companies only,and you can imagine how many big companies are there ALL OVER THE WORLD..One word is, MANY!! So now lets talk about an average person who has a business and wants to promote it on facebook..To get the benefit of facebook advertising,you can not spend 1$ a day and expect to have thousands of people liking your page..NO! sorry to dissapoint you but you reap what you sow..The more money you put into facebook advertising,the more people you will reach out to,and the higher chance of more people to like your page..So if you are SERIOUS about your business,you should expect to spend $10-100$ a day..
Thats alot of money??well,then i guess you are not ready to start a business yet.. So as i was saying you should expect to spend$10-100$ a day..Can you imagine,umm.. lets estimate 500,000 users/business people advertise using facebook advertising,and each of them pays 30$ a day,thats a whooping 15$million A DAY,and thats excluding Big companies who pay thousands of dollars for advertising..You now get the picture of how facebook can and DO make billions of dollars just through advertising..
Another way which facebook make more money is "2. PROMOTING POSTS"..I like to call this,a "smart trick" facebook are using to make more money..So basically is,when you have a facebook page and for example you have 10,000 likes,(which you got by PAYING FACEBOOK through facebook advertising) and on that page you want your post to be seen by all 10,000people who liked your page,So inorder for all of them to see your posts,you have to AGAIN PAY FACEBOOK .
First of all i would like to explain to you that if you have a facebook page and you have over 5,000likes,when you post something eg a post,picture etc..Not all 5,000 people will get to see it..its about an eighth that will actually get to see it..So inorder for all 5,000 to see,you have to PAY AGAIN for them to see,and keep in mind you paid before,so that they like the page :)..And also remember,the more you pay,the more people will see your post :)
So you can imagine how many users use the "promoting post"type of advertising, am guessing millions of them..So i think now you get to understand how facebook makes billions of dollars and am pretty sure they will come up with more ideas to make more billions..so get ready to spend more with facebook :)
This is my first article so i hope it has enlightened you, and if there are any mistakes,comment below and tell me what you think :)
For more, follow me on google + https://plus.google.com/110103079143144507017
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