Social network cashes in on ads
M. Antonio Silas
Business & Technology Editor
Issue date: 8/30/07 Section: Business & Technology
- Page 1 of 1
Facebook is one of the most popular networking tools for teenagers and young adults.
While it was originally made by two students from Harvard to connect college students from different universities, the Web site now allows non-college students to sign-up, and boasts over 11 million users worldwide.
Originally small networking site run by creators Mark Zuckerberg, Dustin Moskovitz and Matt Cohler, Facebook has subsequently grown into an online phenomenon that employs over 300 people.
While it may seem like a free social service like Facebook wouldn't gather any money from having users join, as of 2006, the expected revenue is over $50 million.
"I didn't know Facebook actually made that much money," said Riaasa Muhammed, a freshman biology major from Chicago. "I would imagine they made money from people signing up and using their services. I do think it's a great way to connect to people and communicate."
Reportedly going into several joint ventures with different companies, Facebook still stands as an independent entity because it is not owned by any major corporation.
Facebook's revenue is dependent on the number of users the Web site boasts. With over 20,000 people joining the network on a daily basis, hundreds of companies realized the business potential that the site offered.
According to CNN, stock experts are closely watching the online entity as a result of the large revenue it brings in.
Montavious Duncan, a junior occupational therapy major from Nashville, did not feel that a social networking Web site should be bringing in any revenue.
"I don't believe [Facebook] should profit from their users; it's basically just a chat line," Duncan said. "I could see if you had to actually purchase something from the website, but you don't, so they shouldn't profit from it."
While it was originally made by two students from Harvard to connect college students from different universities, the Web site now allows non-college students to sign-up, and boasts over 11 million users worldwide.
Originally small networking site run by creators Mark Zuckerberg, Dustin Moskovitz and Matt Cohler, Facebook has subsequently grown into an online phenomenon that employs over 300 people.
While it may seem like a free social service like Facebook wouldn't gather any money from having users join, as of 2006, the expected revenue is over $50 million.
"I didn't know Facebook actually made that much money," said Riaasa Muhammed, a freshman biology major from Chicago. "I would imagine they made money from people signing up and using their services. I do think it's a great way to connect to people and communicate."
Reportedly going into several joint ventures with different companies, Facebook still stands as an independent entity because it is not owned by any major corporation.
Facebook's revenue is dependent on the number of users the Web site boasts. With over 20,000 people joining the network on a daily basis, hundreds of companies realized the business potential that the site offered.
According to CNN, stock experts are closely watching the online entity as a result of the large revenue it brings in.
Montavious Duncan, a junior occupational therapy major from Nashville, did not feel that a social networking Web site should be bringing in any revenue.
"I don't believe [Facebook] should profit from their users; it's basically just a chat line," Duncan said. "I could see if you had to actually purchase something from the website, but you don't, so they shouldn't profit from it."
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