$40.6 billion (2017)
How they do it: Facebook digitized a lot of processes around social interaction ranging from communication to sharing photos and organizing in interest groups.
How they do it: Facebook is free for private individuals and businesses. The main monetization happens through the possibility for companies for targeted advertising.
Leverage Customer Data
How they do it: Facebook uses customer data to allow businesses to better identify target groups for their advertisements.
How they do it: Through the personal nature of a user’s Facebook network of friends, switching costs to other platforms are increased with a larger network of friends on the platform.
How they do it: Instead of offering their advertising solutions to few companies, through Facebook all kinds of companies and initiatives ranging from small to big in advertising budget can use the platform to target their audience. Although individual small customers may don’t have a big advertising spend, the amount of companies adds up to significant revenues.
How they do it: The experience on the platform for the individual user increases with the amounts of interactions he can have with friends, peers, brands and other associations.
Learn from this company and apply the same patterns to create your own successful business model!