Thursday 21 April 2011

How can social networks make money?

With social networks now big business, what can the companies do to turn free services into hard cash?

Over the past month, US Facebook users have been enjoying a selection of Warner Bros blockbusters streamed through the site in exchange for about $4 (£2.45) in Facebook credits.

Facebook takes a 30% cut of each credit spent, much like Apple and its app store.

There are over 400 apps and games where the site's 500 million users can go on a social spending spree.

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How can social networks make money?