Are you confused about whether you should create your own
social network app or not? Not sure if it will be worth the
time or effort? If yes, then don’t come to a decision before you go through
this article. Because, over the course of this piece, we’ll tell you how the
big-name social networks – Facebook, Twitter, YouTube – out there are
making money, so you can also apply their methods. Let’s get started –
How Social Networks Actually Make
Money
Social
network sites are making money in various ways. Let’s break them down below –
Ads
Generally,
if you aren’t paying for the social media app, then you are the payment. Yes,
you’re the end consumer and advertisers are the source of money for social
networks. By using these platforms, you’re selling them your time and
attention, which advertisers are taking a cut off.
While
you may think that’s an unethical way of raking in money, but it’s only fair
for them to make money through ads as they’ve spent so much time building up
their user base.
Online
advertising is still a rising market. And because of the attention, these apps
are holding, advertisers are willing to open their wallets further to get an ad
there. The more the advertisers pay, the more prospects would see the ad.
Creative Products
Since
monetizing a social media subtly ain’t a cakewalk, webmasters devise creative
ways to make their revenue. One such creative way is Facebook Gifts. It lets
you send virtual gifts to your friends that show up on your profile. They cost
$1 and you can also personalize your message on them.
Premium Subscriptions
Would
you pay money to use Twitter, Facebook, or Instagram? Probably not. Even if you
decide yes, most people out there won’t. The only successful subscription
social networks are the entertainment, media, and dating networks. Free
apps attract average users because there’s nothing to lose for them.
While
most social networks are completely free, some offer premium versions to make
some money in exchange for extra features. LinkedIn, for instance. They offer a
premium subscription for job seekers. YouTube has also recently come up with their
premium subscription, where they reduce hassle for the user.
But
in all honesty, it’s hard to monetize social networks for the time being.
Especially because there’s the risk of harming the user experience. Social
networks that add applications and services into the community can make more
revenue by charging a developer fee.
Venture Capital – If Everything
Else Fails
Majority
of the social networks start out with venture capital funds. Investors often
take risks on companies if they see potential in them. So they write the check
in hopes of getting a big return over the course of time.
Facebook is a prime example of this. They
started out with venture capital. Same case for Twitter. They both had raised
several million dollars as venture capital. The aim is to either monetize the
network or sell it off to some large corporation to make a killing.
Last Words
Seeing
from a consumer’s point of view, ads mainly were a way to enjoy the application
at a far less cost. Without them, magazines and newspapers would have to double
and triple their prices just to avoid losses. And the price increase would
certainly reduce the number of pieces sold. Same applies for social networks.
Doing so will make people quit social media. Because let’s face it – none of us
would want to pay for it without having a taste of it first. It’s super crucial
to make access easy, effortless, and free if social networks want to keep their
growing up.
