Facebook doesn’t earn money from its users as it offers its service free of cost. Now if you are wondering how does Facebook make money, you are in the right place!
This platform has helped its users earn so much through instream ads, affiliate marketing, paid subscription, online stores, etc. But users don’t know how this has helped Facebook generate revenue. But no worries, here’s a detailed guide on how does Facebook make money.
Table of Contents
How Does Facebook Make Money In 2023?
Facebook makes money mainly by selling advertising space to advertisers. However, it isn’t the only thing that helps FB to generate money; it does have multiple earning streams. Some of them are listed below:
1. Facebook Digital Ads
Digital ads are the best way to generate money on Facebook. It not only helps users to make money but is one of the valuable earning streams for FB. The majority of revenue comes from pay-per-click. It simply means whenever users click on the ad, the advertiser has to pay Facebook for each click.
Facebook creates a set of criteria for the audience they want to reach and accordingly targets them. This way, advertisers and FB both earn good revenue.
2. Facebook Portal Video Gadgets To Make Money
Facebook has launched a video communication gadget that lets users talk with their friends and family via Facebook Messenger and WhatsApp applications. It is considered a smart-home device because it includes Amazon Alexa smart home assistant feature. So you can use it to get the morning news, weather information, or to control your home lights.
3. Electronic Payment Method
Facebook has rolled out a new service called Facebook pay. This service is launched on other social media platforms like WhatsApp under Meta Observation. This allows you to send money on the application to your friends, family, or any individual.
Besides this, Facebook has created Libra, a low-fee cryptocurrency stablecoin that can also help make money. Credit cards allow you to easily buy libra coins via WhatsApp and Facebook Messenger.
4. Facebook Marketplace E-commerce To Make Money
You are mistaken if you think you can use Facebook to only communicate with individuals. Now the application is more than that. With payment services, it now also has a marketplace for users. Surprisingly, Facebook has already attracted millions of users to the marketplace.
5. WhatsApp And Facebook Messenger For Business Conversation
With WhatsApp, Facebook also became an important stream to make money. Business owners have already started using these platforms to interact with their clients. So you can DM and talk to your clients and make a payment right there. You can expect more functionalities like this from Facebook in the future.
6. Facebook Workplace
Business owners now have the Facebook Workplace along with Google. This allows organizations to manage their internal activity. Facebook Workplace provides a free subscription, but you would need to pay 4$ per month for each user. More than 30k organizations are using the workplace across the world, including prominent companies like Starbucks.
7. Oculus Headsets And Application For Virtual Reality
If you are a fan of virtual reality, you might hear of the oculus headset. Facebook paid billions to get the Oculus in 2014. So every time someone buys Oculus, Facebook earns money in exchange. Oculus products are generating 1.5% revenue of total Facebook income.
It is expected to grow more over time as Oculus heavily invests in research and development and AR (Augmented Reality) headsets. This Christmas, apparently, Facebook earned almost 5$ million from the Oculus application.
Facebook earns far more than they actually spend. Besides mentioned streams, FB has other ways to monetize them, like investing their surplus revenue and making money in the form of interests and bonds. What comes may Facebook’s primary income source will be advertisement.
Well, this was all about how does Facebook make money. But if you are a creator who wants to monetize their FB account, you can try making reels, as they are the easiest mode to earn money on the platform.