How Do Free Web Sites Make a Profit?

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Free Web sites make most of their money through online advertisements and the placement of relevant ads on a Web site. Find out how a person clicking on an ad can result in a company making money with help from a Web designer in this free video on Internet help and building a Web site.

Part of the Video Series: Internet & Web Sites
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Video Transcript

Hi, I'm Noah, and I'm going to answer the question: how do free websites make profit? As I'm sure you've noticed, a lot of websites like online dating websites, for example, will have you pay a subscription fee to use them. However, there are a lot of websites that offer great services to users without asking anything in return. So if you've ever wondered how these websites make any money, this is how. The easiest way for websites to make a profit is by using online advertisement. Through Google's AdSense service, you can place relevant ads on your site -- ads that are targeted, according to keywords, so ads which really are on the same topic that your site is dealing with. And by placing these banners of Google ads on your site, you'll be able to make money from it, A, when people actually click on the ad, and also when people simply view the page and view the ad. Now, of course, when somebody clicks on it, which is called pay-per-click, then you'll get a lot more than when people simply view the site. But if your site has a lot of traffic, then you'll have a lot of views. Let's look at an example. For example, www.textmefree.com. This is a directory of sites offering a free text messaging service, meaning you can send text messages for free from the Internet. Now, in exchange for this valuable information, the website doesn't ask anything back from its users, but if you look at it, you can see this little Ads by Google logo, and here, some Google AdSense advertisement. Here we have one block, and also, if we scroll down, a second block. This means that even without us clicking on any of these ads, every time someone views the page, the person who's the owner of this website gets a few cents from simply pay-per-view advertisement. Then if we actually click on one of these ads, the website can make even more profit.

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