Facebook on track to make real money
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It took years for Google to figure out how to crank up its money-making machine.
But that hasn’t kept the same question from dogging popular social networking site Facebook for years: When would it get its moolah mojo?
Just Tuesday Yahoo CEO Carol Bartz, on CNBC to celebrate her company’s 15th birthday, took a dig at Facebook: “What’s their revenue?”
Well, the very able Eric Eldon has done some educated reporting and the numbers are looking good for the privately held company.
He estimates that Facebook revenue rose as high as $700 million in 2009 and is on track to hit $1.1 billion in 2010. Facebook did not comment on the estimates.
“The company has been roughly doubling its revenues every year,” Eldon wrote. “We expect that trend to continue for the foreseeable future, making Facebook a multi-billion dollar company within the next few years.”
How is Facebook making money? A combination of brand and self-serve advertising, the sale of virtual goods and other stuff. It also has its own virtual currency now, which could spread beyond Facebook.
“Facebook,” Eldon said, “is innovating in multiple areas, in ways that we believe will work for the long-term.”
-- Jessica Guynn