If we learned anything from last month’s Congressional hearings, it’s that the societal risks posed by Facebook and other social media platforms are greater than ever.
First, Facebook has built arguably the best business model in the world as it provides an advanced service of scale and sophistication, achieving the trifecta of high scale, growth and profit margins unmatched by any high tech company, including Google, Amazon, Apple, and Netflix. and NCrypted has already given enough basic understanding of how WhatsApp works in the blog. so let’s skip that.
well, Half of the total populace doesn’t have an entrance to the web thus Facebook Lite has been done to let individuals, who are not yet associated, interface with Facebook.
As we already know Facebook’s promise on its sign-on page for new users: “It’s free and always will be”
Facebook’s ad-supported business model has been very beneficial for the company and its shareholders, what about the rest of us?
Facebook is the big black hole of user data. Unlike other apps, Facebook does not provide a premium membership option. It’s the same for every user. Facebook strategizes in generating data. The customers for Facebook are advertisers. They buy a service (ad space). And that’s how facebook earns money.
What can be a better revenue source than selling that data, in a restricted way, to the marketers? Facebook use this user data to target ads to the right users. Another source is Games, yes, Have you ever played any of those games like Candy Crush, Zynga Poker, Farmville, etc. on Facebook? Or have you ever paid for any virtual currency or any virtual game/application product on Facebook? These games and applications play a great role in framing Facebook business model as a part of these type payments go to the company which acts as a payment gateway for those applications and games.
How does Facebook make money is what everyone wonders, but now you know!
So here are some Facts and Figures of Facebook as Facebook Business Model is worth a discussion.
And if you also want to repeat the success of Facebook by creating a similar website, don’t forget to visit this Facebook Clone.