The other day my father and I went to lunch and he was asking me a series of questions about Facebook like how do I make one? How do I add a picture? And then he asked me if it was free. I said “of course” and then he asked me “Well then how do they make money?” And I had to stop and think for a few minutes. I had no idea.

I remembered seeing the movie about Facebook and Mark Zuckerberg called the Social Network which showed him being extremely wealthy. His friends were even suing him for shares of his money. I began to wonder how a man and a website could make so much money if everything was free of charge. When I returned home, curious, I began to research the topic.

Amazingly, Facebook makes all of it’s money from advertisements. There are several different types of advertisements, some are simple self-service ads while others are engagement ads where the user can interact with the advertisement. Microsoft even signed a deal with Facebook to post ads! I was amazed that so much money could come from advertisements because when I use the website I hardly even notice them.