Facebook chief executive Mark Zuckerberg is earning huge money of this site. How does money come and goes in this most used site nowadays?
Chief executive Mark Zuckerberg Facebook earnings
Since Facebook is the current leader in social networking today, it is to no surprise that its earnings every second every day is increasing exponentially. According to different official sources, Facebook’s revenue increased to $3.7 billion in the past year. This is surprising because it is just on this year (2011) that Facebook opened its doors to any potential trader as a public stock. The $3.7 billion jump of Facebook is a very powerful one, because in 2009 it only earned around approximately $153 million, which is very small compared to the past year’s report.
This is mainly because for that span of two years, more and more advertisers are seeing the potential of Facebook’s power over advertising around the world. The introduction of selling virtual goods by the use of the different Facebook applications is also a good contribution for the social media giant’s business model. Because of this, Facebook CEO Mark Zuckerberg is naturally expected to receive a sum of about $28 billion, which is very monumental in terms of financial history.
Chief executive Mark Zuckerberg Facebook earnings
Facebook is no different to other websites and businesses which rely on advertisements. This is usually the main source of expenses and income and this is how cash flows in and out of the company. To make your website reach many users, you need to put it on different advertisements across the web and this task already means money.
Putting online advertisements is not cheap like with TV advertisements. You need to have a specific fund for this matter. Besides that, they also need to pay monthly or annual fees for website hosting. That’s how we can describe the outgoing flow of cash in a website. For the cash that they earn, Facebook has in-site ads from different advertisers who are also Facebook users.
Other online or local businesses who want to use Facebook as their other platform to launch their product can put ads on the site and be displayed as users browse Facebook. Facebook ads are normally shown on the side of the screen. Ads are normally in pay-per-click basis and depend on your daily budget.
You will only pay if somebody clicked on your ad where the visibility of your ad depends entirely on your daily budget. That is, if your daily limit is still not reached your ad will still be shown but if you already reached the limit then your ad will stop from appearing.
