While surfing I came across a discussion where some say Facebook is not profitable yet. How this can happen? According to them it sells stock to cover expenses. What do you think? Any idea?
From what I remember they aren't public and therefore can't sell stock but I guess you can take venture capital and you either have to pay it back or you give them partial ownership of the company. There is sooooo much overhead that goes with their site from employees and offices to health insurance and anything else a company has to pay for...
Now let me ask you one question... How many ads have you clicked on Facebook? Yeah I never have either...
That's my two cents. If I owned that site I would sell it right now and go buy a small country. Facebook like it's friend myspace will eventually fall from grace and everyone else will move onto the next fad... My prediction (which probably isn't even worth two cents.) is that it will be the new smart phones that become the next big social networking technology thingamajig...
While surfing I came across a discussion where some say Facebook is not profitable yet. How this can happen? According to them it sells stock to cover expenses. What do you think? Any idea?
In my experience Facebook is a good place for building a brand names, public profiles or personal reputation but not a converting area for ads. Evidence:I have tried it but no conversion for my attempts.
i have heard that facebook makes millions in profit... through all the facebook aps and the ads on the side... they have so much traffic, they have to be profitable
i have heard that facebook makes millions in profit... through all the facebook aps and the ads on the side... they have so much traffic, they have to be profitable
Is it profit or revenue? So much traffic does not mean profit. Only converting targeted traffic pays you well.
yeah, its true, and i just did a search around digg and saw that everyone is talking about how facebook does not make profit. its just really hard for me to believe.
I think success in facebook ads is directly related with which vertical you are going to target. In my experience, software promotion trial ended up with zero because people are more inclined to fun and friendship. For business or for shopping there are a lot of alternatives around.
When people like to make fun, it is difficult interrupt them and drive them to other channels to do something else.
Cheers
Quote:
Originally Posted by maymorgano
My 2 cents: I am advertising on facebook, and the conversion are good, (enough to keep this going for 5 months now).
In terms of company - at least they are making some revenue as opposed to twitter, which has not done any income even though it has a huge success.
I am on facebook and I have a website linked there. It don't make me a million dollars overnite, but it converts so I left it alone you got to work on it like anything else. Want to know how I do it. Send me a pm or just post and I will be glad to share it with you.
Is Facebook Profitable?
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