Why are sites like Facebook worth millions when access is free?

Owing to the rapid pace of growth, increase of community members and quality services, sites like Facebook is worth a million despite the free access. $240m (£117m) have been invested by Microsoft in social networking site Facebook in lieu of 1.6% of the company’s share. Facebook like other Web 2.0 sites is considered as one of the best social networking sites. With the social networking sites like Orkut, Facebook and Myspace going viral for the past few years, a recorded 50 million users have been created worldwide. Facebook is therefore a stiff competitor of MySpace.

According to the recent survey, 200,000 new users are added everyday to the celebrated web 2.0 site, Facebook. Recent analysis also suggested that every user, at an average uses Facebook for 3.5 hours per month. This is far more than its rival MySpace. Most of the users of Facebook come from a wealthier background, much to the interest of the advertisers. 60% of the users reside outside the US, therefore enabling a global audience for Microsoft. Facilities like messaging, photos and video are available in Facebook. Facebook is therefore a new medium where the developers can target talented audience for marketing. Facebook provides an opportunity to speak out your heart before your beloved. It brings together lost friends and connects people around the globe.