Sunday, September 26, 2010

Google Doesn't Make Any Money

Google offers a ridiculous number of online services. There's the flagship Google search engine, Gmail, Google Maps, Google Earth, Google News, Google Talk, Google Docs and Google Calendar, just to scratch the surface. Then there are popular Google-owned Web sites like YouTube, Picasa and Blogger. All of these services are absolutely free.

So, how does Google make money? Does it make money at all? Since Google's debut, a persistent rumor asserts that the company has no business model and therefore makes no profit. That's one seriously misguided myth.

In 2008, Google made nearly $22 billion [source: Google]. Ninety-seven percent of the company's revenue came from advertising. How did they pull this off? Google has developed two highly profitable advertising models: Google AdWords and Google AdSense.

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