[worthless]

Hi everyone..i have a question..
can anyone tell me how exactly do these social networking sites make money..
I mean few days back a IIMC students opted out of placement and came up with his own site...thats basically a networking site..so how will he make money...as far as ads are concerned thats comes only after the site is very popular..then wat about orkut havent seen any ad in orkut...the man who created it surely had some plans..so plzz if anyone can guide me how this e business thing works..

[Apurv]

Originally Posted by xcoolaryan

this saturday, i'll in mum .... so sat evning will be fine ...

sunday, back to pune, so anytime will work

There's a PG Meet hapeening in Mumbai on Sunday evening at 5 pm at Phoenix Mills, Lower Parel.

We can have the first entrepreneurship meet there itself as a start.

[xcoolaryan]

Originally Posted by Apurv

There's a PG Meet hapeening in Mumbai on Sunday evening at 5 pm at Phoenix Mills, Lower Parel.

We can have the first entrepreneurship meet there itself as a start.

Won't be able to make it as I am heading towards chennai tomorrow

[the_egonomist]

nope - mumbai doesnt seem possible for me this weekend.

Have a good one guys!

Cheers!

[Neo2000]

Originally Posted by worthless

Hi everyone..i have a question..
can anyone tell me how exactly do these social networking sites make money..
I mean few days back a IIMC students opted out of placement and came up with his own site...thats basically a networking site..so how will he make money...as far as ads are concerned thats comes only after the site is very popular..then wat about orkut havent seen any ad in orkut...the man who created it surely had some plans..so plzz if anyone can guide me how this e business thing works..

VC Confab: Please, no more social networks

Orkut is owned by Google. Google's policy is simple-- Give away everything for next to nothing. The "free" factor is a great motivation for people to use google's products. Combine that with the fact that Google Does produce great products and you've got millions of users logging into your products. And all for the minor inconvenience of seeing texts of ads here and there. Some of which does get clicked upon.

Not sure which year but a year ending report said that 97.5% of Google's revenue came from advertising alone. Considering this runs into a few billions that's a huge amount of money. They can afford to give stuff away (GMail, Orkut, GoogleNews, GoogleReader,...) because it means more and more people using their services. And that only means more and more revenue in advertising.

[worthless]

Originally Posted by Neo2000

VC Confab: Please, no more social networks

Orkut is owned by Google. Google's policy is simple-- Give away everything for next to nothing. The "free" factor is a great motivation for people to use google's products. Combine that with the fact that Google Does produce great products and you've got millions of users logging into your products. And all for the minor inconvenience of seeing texts of ads here and there. Some of which does get clicked upon.

Not sure which year but a year ending report said that 97.5% of Google's revenue came from advertising alone. Considering this runs into a few billions that's a huge amount of money. They can afford to give stuff away (GMail, Orkut, GoogleNews, GoogleReader,...) because it means more and more people using their services. And that only means more and more revenue in advertising.

Thanks a lot for replying...ads are definitely the main thing...but i was wondering if a site makes money based on the number of people hitting the site everyday or everytime..
any guesses??

[the_egonomist]

Originally Posted by worthless

Thanks a lot for replying...ads are definitely the main thing...but i was wondering if a site makes money based on the number of people hitting the site everyday or everytime..
any guesses??

the way I see it - a popular website/blog getting a lot of hits is a lucrative place for a person/company/entity to advertise. Why is it that blogs by common place people have ads on them? Its because of the no of hits. The moment any site or webpage gets a lot of hits it becomes natural for ads to come there.

Think of it as a billboard on a heavy traffic route. Lucrative because of the no of people seeing it.

Of course with the advent of google advertising it becomes that much simpler.

Cheers!

p.s: I know I dont have the technical expertise/ numbers to back it - but will try to find out more.

[xcoolaryan]

Originally Posted by worthless

Thanks a lot for replying...ads are definitely the main thing...but i was wondering if a site makes money based on the number of people hitting the site everyday or everytime..
any guesses??

for site whose page hits are more than 5,00,000/day they get special rated for Adsense ....

refer to google adsense for more details like how much google pays etc.

[xcoolaryan]

Originally Posted by Neo2000

VC Confab: Please, no more social networks

They can afford to give stuff away (GMail, Orkut, GoogleNews, GoogleReader,...) because it means more and more people using their services. And that only means more and more revenue in advertising.

GMail, Orkut, GoogleNews, GoogleReader are ok but sites like youtube cost a lot of money since they consume very heavy bandwidth ... so i still wonder does google really make money out of youtube?

[Neo2000]

Originally Posted by xcoolaryan

GMail, Orkut, GoogleNews, GoogleReader are ok but sites like youtube cost a lot of money since they consume very heavy bandwidth ... so i still wonder does google really make money out of youtube?

I'm not sure Google makes any money on YouTube. But then, neither did PG in the early years. However, given that youtube is like a top10 trafficked site and there are millions of videos and users, that's a huge base of eyeballs that youtube has.

Its unlikely that Google will want to continue losing money over youtube (hey even though they earn billions i doubt they are that philanthropic in nature) The recent tie-ups with CBS could be a way to make some money, In the near future artists could probably have their own page to promote their videos (of course paid for by the record industry) or independent artists would pay a small fee or something. The possibilities are endless.