How does Facebook get money

How does Facebook make money?

Import import

Is Facebook using the old drug dealer trick "the first shot is free" to collect money from advertisers? Is Facebook actually sitting on a gold mine? What does Facebook want to earn money with?

EnlargeHow does Facebook make money?

For many people, Facebook is the first stop in any internet session. The website has become a welcome combination of an interactive bulletin board, personal notebook and group communication network. But have you ever wondered why Facebook is free despite the hassle?

Well, Facebook isn't actually free at all. Facebook offers users its services in exchange. The user allows Facebook to accumulate a mountain of demographic and preference data. Do you think that nobody told you that directly when you registered? The devil is in the details. This data is very valuable for advertising professionals and marketing departments, as it reflects in great detail the personal preferences of a user.

Many Facebook observers believe that the company is betting on eventually being able to sell or rent parts of its "social graph" or profile information database to outside advertising professionals and marketing departments. These can then, in turn, place targeted advertising in the relevant target group. But so that advertising professionals can use the user data, the entered profile information must be set to "public".

Especially since Facebook has recently been scolded for its privacy options, many users have become more cautious in this regard. Especially in the current tense data protection situation, even the smallest attempt to convert profile data into money could have disastrous consequences.

So what can Facebook do to make money?