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Learn about the top 10 successful online businesses, including Facebook, Instagram, YouTube, Pandora, Netflix, Snapchat, Twitter, and Google. Discover how these platforms make money and the key factors contributing to their success.
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Top 10 Successful Online Business By: Marissa Duenas
Facebook • Facebook makes $5 when 1000 people post on Facebook • For every like on any post Facebook makes $1 dollar. • Facebook makes $100 dollars for every a thousand views • A site owner gets paid when a visitor clicks on an ad. • Your visitor must take action on ad before payment. • Get paid every time an ad is displayed on your site • Faebook is worth 200 billion dollars as if today • Site was discovered/made by Mark Zuckerburg
Instagram - Instagram is worth $19 billion to $35 billion - Facebook bought Instagram from Kevin Syster for 1 billion dollars - Instagram makes its money from advertising, just like Facebook. Facebook doesn’t break out Instagram’s financials, but Facebook overall derived about 93% of its fourth-quarter revenue from ads. - Ad revenue for the quarter was $3.59 billion, a 53% increase from the same quarter the year before - Ads that are used on Instagram include Nike Inc. (NKE), General Electric (GE) and Walt Disney Co. (DIS). - Facebook earned $4.2 billion in the last year, a 39% increase over last year. It turned a healthy profit of $719 million, or $0.25 per share.
yOUtube • Youtube makes money based on people’s engagement with the ad. Engagement there means clicking or watching a ad for more than 30 seconds. Advertisers choose ads on a Cost Per Click (CPC) or Cost Per View (CPV) model • If a certain AD has a CPC of $3 and someone clicks on that ad, it will give that advertiser $3 • Certain Keywords (search words) Pay More than Others. Advertisers will pay more for the keyword, “home mortgage” (CPC $17.63) than “cheap phone cases” (CPC $1.38) because the end return is a lot higher • If someone would close a home loan that could give them more than $5,000+, whereas on a cheap phone case would only be $15 • You would get paid 0.01% (CTR) a phone case video that gets a million views or a home mortgage video that only gets 10,000 views and gets paid 0.08% (CTR) • YouTube is worth between $26 billion and $40 billion
Pandora • Pandora took in $180 million, of which $144, or 80%, came from advertising • $36 million of Pandora's revenue comes from subscriptions and "other • Pandora has been growing its top line 50% annually • Pandora has 3 million paying subscribers for its Pandora One service, for which users pay $3.99 a month • Pandorahas 2.5 million subcribers, paying $36 a year, or a monthly payment of $3.99 • As of November, listener hours for Pandora were 1.49 billion, an increase of 18% from 1.27 billion since last November. And Pandora's share of total U.S. radio listening was 8.44%, an increase of 7.17% since last November • Pandora is worth up to a ~$4 billion valuation.
Netflix • Netflix makes $3.4 billion dollars, 62.3% of the total amount made • $1.3 billion dollars, 23.8% of the total that is made. World wide streaming dollars increased from 8% in 2012 to 23.8% in 2014. • $765 million dollars, 13.9% of the total, from domestic DVD business. The share of domestic DVD business declined from 31.5% in 2012 to 13.9% in 2014 • Netflix spent $607 million, $472 million, and $270 million on marketing, technology and development, and general and administrative expenses respectively • Netflix has a net profit of $267 million and a net margin of 4.8% • At $32.9 billion, Netflix now is considered more valuable than CBS ($30.6 billion) and Viacom ($28.8 billion)
Snapchat • Snapchat is worth up to 19 million • Snapchat makes money several ways, but its newest revenue source, "Sponsored Lenses," was just launched in October. • Snapchat will make to $750,000 for any brand to reach Snapchat's entire user base on Special Days like Halloween, Thanksgiving, and Black Friday. • On non-special days, Snapchat would charge $450,000 to $750,000. • According to Snapchat in May 2014, the app's users were sending 700 million photos and videos per day, while new “Snapchat Stories” content was being viewed 500 million times per day.
tWITTER • Twitter is priced at $26 per share,isofficially worth more than $18 billion dollars • The typical range for this is 50 cents to $5 per follow. • In Q1 2015, Twitter reported its advertising business brought in $388 million dollars. That was a 74% increase from the previous year. • Roughly 89% of that advertising money comes from mobile cell phone usage • In 2014 Twitter generated a billion dollars. (The final amount will come in when the company reports their earnings, but its earlier estimate was $1.375 billion a month.) • The stash has been rising at an annual rate of over 100 percent.
Google • Google's $364.99 billion, according to each's market capitalization, or the price of a share in a company's stock multiplied by the number of shares outstanding • According to Google's income statement, about 70% of its advertising money comes from Ads, the rest from AdSense. • While 96% of Google's money comes from advertising, the company is so big that it still leaves $1.5 billion unaccounted for • Google does not make any money directly from searches. AdWords brings in roughly 70 per cent of the company's advertising money • In the first quarter of 2015 Google took in $17.3 billion dollars, up 12% year over year. Nearly all of it -- $15.5 billion -- came from advertising sales.About $12 million of that came on the company's own sites.
Amazon • The online retail giant's market value is about $250 billion. Walmart (WMT) is worth a little more than $230 billion. Amazon is now the most valuable retailer in the world. • Amazon collects $40 per month subscription fee, but does not collect additional fees from sales on a per-item basis. • Amazon can sell for free, but Amazon collects a $1 selling fee from each item sold. • There are closing fees of $1.35 per item that Amazon collects from the sale of "media" items (books, DVDs, video games, CDs, video tapes, and so on). Variable referral fees are also collected by Amazon for each item sold, depending on its merchandise category.
GMAIL by GooGLE • Your Gmail is worth $3,588.85, and increases by about $1,196 per year. You “spend” as much in Gmail every year as you do on your car. • Gmail makes 50-60 million dollars each year • The average user might get 100 emails per day (wild guess, probably high), which would mean about $0.01 in money per account per day. • Gmail makes $0.01 per day per user is $3.65 per year • Gmail makes $0.005 (half a cent) per user per day,apessimistic estimate would be $0.001 (1/10th of a cent per user per day).