Many internet users
keep asking question why facebook allows users to own facebook account for free?
Why they don’t charge any fee? How can this giant company survive? What are
their revenues to support the whole process and large website development? Is
it really free? Answere is written below to tackle all doubts from all users
all over the worl. Keep reading another five or six sentences then you will
know why.
Facebook is one of the
biggest social networks in the world. Facebook, which was co-foundered by Mark
Zuckerberg, has 500 million users and counting. It allows users to create their
own profile and able to communicate with other users by texting, sharing, group
chatting and few other functions.
However, Facebook is
confronting many struggles in making revenue although it is the leading social
network. It requires to improve its business tactics in order to gain higher
revenue and attract more investors.
Like other social
networks, Facebook generates revenue via advertisement. One special thing about
Facebook is it allows advertisers to hit target groups quickly by matching with
profile, preferences etc.
There are many users who
dislike sharing their personal information to public, except their close
friends, though. This is an obstacle for Facebook as it wants to gather
information as much it can for advertisers so that it can generate much money
but it has to put restriction on privacy policy as well. As such Facebook is
doing to get confidence from users in order for them share their information as
much they can.
The Company has used many
different policies to recover the situation such as using Beacon app to show a
friend of friend is using one particular service. However, Facebook received
many criticism regarding disrespecting users’ privacy. Later, Facebook tries to
improve its privacy policy but still facing challenges such as an app in
Facebook could gather data from users for the advertising companies. This
action really deteriorate the situation.
Nonetheless, no one knows
yet how much Facebook will earn. Facebook, on the other hand, announces that it
will not charge users any fees for using its Facebook account. Facebook’s total
revenue in 2010 probably reaches $1 billion. It is worth to not that Facebook
has become the top social network nowadays
In short, this article
wanted to show that Facebook is generating its revenue from advertisement. But
to spread advertisement and hit the targets, Facebook has to know about its
users profile and preferences. However, users did not want to share their
personal information to public, except their close friends. This creates an
obstacle for advertisement firms to advertise their products to the right
groups. This problem has limited Facebook in generating as much money it wants.
Facebook also faces privacy problem as its users require higher restriction on
privacy while Facebook wants its users to share personal information so that it
allows advertisement to run smoothly. However, what Facebooks has to do first
is to increase confidence for users. In overall, Facebook’s health is quite
well developing in these days.
