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How do social networking sites like Friendster and even Youtube generate revenue?

Is it thru CPM (cost per impression), CPC/CPA (cost per click/action), affiliate marketing?

Public Comments

  1. Yeah, basicly through the ads on the sites. And with the millions of people visiting those sites, people are bound to click on the ads.
  2. Great question. This is a guess based on some research, but here goes. The CPM model would best benefit the site since most visitors will ignore the advertising anyway. Now that Google bought YouTube I would think that they will start to show AdWords ads soon. AdWords shown on a publisher site is AdSense and has a much lower CTR. Michael
  3. No there is no other way. Sites like Myspace and Friendster are based on ads. I don't even think they use click based ads They get raw money, like thousands from that.
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