Think there is still no free lunch in the world. Some social media websites are being perceived to be free might due to the following reasons:
They (social media companies) want to build up the mass contents or reputation which they offer free to all members so that those members can contribute their contents that can further attract others to join.
Some social media companies offer basic membership for free in which when those basic members become more sophisticated & need to use certain advanced features / functions / services, the social media companies might charge them on certain fees.
Some social media companies might not charge all members that contributing their contents whereby the social media companies might charge other merchants that might want to advertise their products / services onto the social media websites - social media websites' members that view these advertisements might become additional customers for those merchants.
Think there is still no free lunch in the world. Some social media websites are being perceived to be free might due to the following reasons:
They (social media companies) want to build up the mass contents or reputation which they offer free to all members so that those members can contribute their contents that can further attract others to join.
Some social media companies offer basic membership for free in which when those basic members become more sophisticated & need to use certain advanced features / functions / services, the social media companies might charge them on certain fees.
Some social media companies might not charge all members that contributing their contents whereby the social media companies might charge other merchants that might want to advertise their products / services onto the social media websites - social media websites' members that view these advertisements might become additional customers for those merchants.
I guess they are aware that people eventually try out something which is free and then in no time (if the website is really interesting) in no time it gets its audience and finally the revenue through advertisements (as stated very descriptively by Dr. Han Ping Fung).
Not at all, dear Dr. Emad the social media websites never has been free, the platforms are depending on penetration of users, therefore they are earning a lot of money.
I agree and share the views of Han and Assad . I just want to add that social media websites collect a lot of information about all users about their habits, their preferences, etc. This information is of great importance for markets and for personalized advertising.
There is no free launch. I think the free websites are just making their goodwill and at some point of time in the future they will carry it on payment basis.
In the present world no organization can sustain without profit. No doubt, social medias are doing societal work but they are also earning adopting various intelligent ways.
Apparently, the sites are free for members for some basic facilities/ services. The ways of earning are not completely same for all social medias. But the most common way for a social website to generate fund is from advertisements.
Mr. Han Ping Fung has mentioned some other ways. To know detail, company wise study is required.