They say it is free. They also say that Mark Zuckerberg – the man who started Facebook – is one of the richest people in the neighborhood – apparently a billionaire. So how the hell this man to give free accounts to its users and be happy sitting on top of a gold mine? The figures on annual income around Facebook going to stop his heart to say the least. The numbers were all bandied about U.S. $ 500 million, which means that since 2007, they are more or less a doubling of their income. All this from a free website! So where is the money? This article will answer the question, how does Facebook make money and solve the mystery for you.

How Facebook make money?

A free account notwithstanding, Facebook is making money. And much of it. How does Facebook make money? If you knew how Facebook does financial work!

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I will solve the mystery for you in one simple word – advertising. The same thing that most sites around the world running. That’s the big secret behind burgeoning revenue from Facebook. If you open your Facebook profile, you will see that while the right of the page is filled with ads. You can use the thumbs up to the ad or the thumbs down. The thumbs down will remove the ad and it will not come back.

How do these ads work? Well Facebook is definitely a smart social networking institution which knows where to place ads. Like Google AdSense, Facebook also offers an ad on the pages based on the interests and the public profile of the user. So, if you are in your profile that you are a fan of Nike and other sportswear brand, their ads will appear on the right side of the page for companies and websites to sell. Facebook ads are not intrusive and so people are not annoyed with them, unlike we do with those super-annoying pop-up ads.

And their advertising system is logical, because it ensures that the right ad to the right customer, because the ad is selected for an individual page based on the interests and wishes of the user. This prevents unnecessary waste of adspace on the page where the chances of the ad is “hit” are theoretically quite low. The advertising system on Facebook, user gives a “thumbs down” feature, which ensures that some ad does not appear. That is a pretty interesting thought, given that the ad is not a chance of being clicked and leave the users will continue to annoy them.

Facebook Gifts
Ever sent a virtual gift on the birthday of someone? You must at some point, if you knew how to use Facebook. Well you do pay for some of them and much of the cash goes into the company. While simply writing ‘Happy Birthday’ is sufficient for some, the ‘tab to send a gift “on the wall of your friend to encourage others to send a virtual gift – paid for online. All the money almost always goes to the company, but if the gift is provided by an outsider, and then part of it is there. But much of it is still held by the website.

Application Performance
The beauty of companies like this working on different platform is the abundance of business ideas that they brought to table.Performance advertising is a unique answer to how does Facebook make money. Let’s take the example of Farmville, which is fairly easy to do on Facebook. Now the application is offered for use to the users of Facebook and the parent (Zynga) gets a lot of traffic because of the popularity of the game on Facebook.Therefore not entitled to contact a piece of that pie to take? After all, they provide a platform for gaming companies like Zynga their burgeoning user base. So Facebook is a bit of money there as a “rental” for the use of their users.

I think the answers to your questions about what contact and how does it work and how does Facebook make money. Now this information about how Facebook makes money is largely speculative. Facebook is a public company and have full freedom to not disclose their financial information – and they do not disclose their revenues and their sources of income.