Tuesday, September 16, 2014

How Internet Giants like Google, Facebook, Youtube , Wikipedia make money for their free services.

We may sometime wonder how the websites like Google, Yahoo, YouTube, Facebook etc make money even if they provide their service for free of cost. Here is the scene behind the screen.

Facebook google yahoo wikipedia twitter youtube

> Youtube
You can wonder youtube doesn't cost you any fee for watching their videos , then how do they make profit. Youtube earns lot of revenue using the following strategies.
  • You might have notice 1 to 2 minute advertisement at the starting of majority of youtube videos. Those advertisement videos are sponsored by third party companies and they pay youtube for displaying their ads in Youtube videos. Youtube give some percentage of money to the video uploaded person and keep remaining money as commission.
  • Apart from this youtube earn some amount of money through paid movies.
  • Google provides almost all of its services like Search, Gmail, Google+ , chrome for free of cost
  • But they are the one who makes a lot of profit using these services.
  • They display advertisements as text or in image or in flash format in their products and making lot of profit through such advertisements.
  • For example you may notice that the first mail in Gmail is titled as Sponsered, It is nothing but an advertisement.
  • Everybody knows that facebook is absolutely free. But they are next to amazon.com to make a lot of revenue and profit.
  • They have an option to pay for promoting the facebook pages. For example if you create a page for your music band and you want to promote to 1000 members, then you can use this option by paying specific amout of money in dollars.
  • APart from this facebook also earns a lot through displaing advertisement in their pages and posts. If you see any posts with title "Sponsored" then some guy paid facebook to show to you.
> Wikipedia & Quora
  • These websites are non profit organisations. But they need some money to run the websites and maintain their huge servers.
  • So yearly twice or at some frequency , they raise fund from their users to collect specific money who are willing to donate and using that fund they run the organisation.
> Other Websites
  • Websites like yahoo , yahoo answers are all work on the way to display ads to make profits.

Such a way the websites which provide free services earns lots of money . Usually their earnings are defined in seconds or minutes. Imagine then how much they make revenue.

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