How do social networks earn money in the beginning--please advise...?

Anyone out there know how social networks start to make money.

Like what do I have to do to gain money.
Do I set up the option for people to become registered.
Do advertisers come to me or do I go to them.

The content of my site is not neccessary at the moment to share but just wondering how we are suppose to earn the amount of money social networks make. How do they get that money and from who.

Hope it's clear.
Thanks

 

Most likely, a Social Networking site will make money from outside advertisers. However, this is done in a number of ways unique to each social networking site.

For example, Twitter charges for businesses to post sponsored tweets and have sponsored trends, whereas Facebook has targeted advertisements down the side of a users news feed, based on the things they do as judged by Facebook.

 

It is true now, but when they just started, a year after started, they had no sponsored tweets or other types of ads. But still made money.
I think they also make money on selling statistical data about trends that they can learn from our behavior in their sites.

 

At the beginning of a social network is not profitable. You can think of the premium accounts that will have additional options.

 

It is a known fact that though facebook has high market penetration their revenue is very less. They are still unable to utilize the market share for revenue generation.
Actually facebook balance sheet net is in loss.

 

And at what basis you say this?

 

Facebook balance sheet net in loss, nor sure if that really true, but if yes, it might be for tax purposes. I'm doubt company worth $100B is in loss.

 

Simply by placing ads here and there. The beginnings of a social network don't make much money. It's only until later when more people join your website that you'll start seeing massive revenues.

 

Facebook is a public limited company and they announce the quarterly results every quarter. Based upon the results released it is in net loss.

 

If you want a site with high traffic.
Advertisers might contact you to post their ads in your page. That's a way of charging companies or people for using the space in your page.

You can also post in forums or other sites that allow you post about available space you are renting in your site.

 

I've been wondering about this ever since I read that Facebook reportedly received a $429m tax refund when it owed $559m.

 

You guys have clearly went off-topic. regarding this post, it does not matter if FB has a gain or even loss. the guy who started fb (mark z.) has lots of money in his personal account. Even if FB flops tomorrow, mark z. still is set for life if he is wife with his fortune....

If the op turn a site into a million bucks, then he can sell it for $10 or even $20m, but even this
statement is off-topic to the post....

The fact of the matter it can be really tough with todays competition...
It doesnt mean it cant happen, but if it is already out there, then you will
have to work 100x more just to be able to get anywhere., and if you are just starting
out, and you are not a jack of all trades, design, coding, marketing, etc, and these
costs can add up very quickly in a short period of time....

Looking back on history of some domain start up, it took them years to
get into the market, and maybe so just to make their first $100k, but how
much did they spend to get there? $100k, $200k, and years later they are
still barely a million dollar company, why? simply because the competition
was already there, and beat them to the punch long ago, and they started
their company back in the 90's, can you imagine trying to break into the
market just to compete with this company? much less competeing with
with everyone else that is already in the market, and has been for years....

It can be very tough to break into any existing market....

Whoever makes it first, gets it first, and everyone else is just lap-dogs...

and sometimes you just get lucky, you create some worth-while
app, then some company offers you $10m for your app...
(true story)

But to answer your question, think of google, facebook...where do you
think they get their money from? They get their money from
those who wish to advertise with them, and investors. It was not so
long ago that twitter got a huge investment, dont think they needed
it, then they use this money to come up with new ideas for the
company, hire coders, designers, buy up other profitable companies, etc...