Twitter, WhatsApp, Facebook and almost all social media apps are free; you wonder how they make money. I mean, could it be from the data you use? No, it’s not; then how?
When the internet was first introduced around here, we could browse through Wapdam, Waptrick and 2go; it’s okay if you once share the notion that these companies generate revenue by getting cut or shared from the data you purchase. Some of us even opened some .tk websites at the time just so we could get paid from the new cool (tech), but it is not so; in fact, it is far from it. MTN or any network provider do not pay any company, whether product-based or social media, simply because you browse their website. In this post, I’ll tell you all the possible ways that tech companies generate revenue, using the listed product at the top as an example.
1. Advertisement revenue:
The concept of money or revenue generation in any industry, including tech, is the number of audience and purchasing power. Social Media platforms have 200M or more daily active users. That presents a platform for advertisers to reach people and get sales on their products. Oftentimes, you see cards with “Sponsored” or “ads” labels; these are advertisers paying these social media companies to reach users on those platforms.
2. Selling products and services:
The concept of whether or not a platform uses ads depends on the type of product or the founder’s orientation. Some founders hate ads, and that’s why Elon will force down $8 per month on his newly acquired twitter and turn the platform to subscription-based, including ads. Other companies may sell products or services, mainly referred to as E-commerce(Jumia, for example), and for services, there’s SAAS (Software as a service).
- Ads or Audience Monetizations
- User Personal Data (Information) Monetization
- Product Sales ( E-commerce)
- Software as a service (SAAS)
- Not from using your data subscription definitely