How do social networking sites earn a profit?

There are a few different ways social networking sites earn money, with more on the horizon. This article aims at uncovering ... from venture capitalists. Investors are willing to take a risk on a company if they think it can be profitable in the future, so they invest early and hope for a huge payoff down the road. read more

Web advertising is still an emerging market. Because of the millions of users on a social networking site, advertisers might be willing to pay more for an ad on a social network. Social networking sites use target advertising to increase the value of ad and reach to more and more customers. read more

Eventually, social networking sites have to hope for one of two outcomes: Find a way to make money or convince a larger company to buy the site. Assuming the social networking site's founders want to maintain control over their creation, the only real choice is to find a way to make money. read more