Zheng (Kathy) Li's Blog

To me, Facebook was simply a very popular website that people go on to socialize with others. It did not occur to me that Facebook is an entrepreneurial venture, and one of the most successful ones out there. It meets all the definition points of entrepreneurship: great amount of wealth creation, fast speed of such wealth creation, high risk, and high innovation.

Facebook creates millions in revenue from the advertisements on the website. Although this doesn’t seem like it can earn much, consider this: Facebook is the second most visited website in the world. Because of this, many businesses want their ads on this social website.

Facebook started in 2003, and until now, has only been running for around seven years. Yet, they became one of the fastest revenue-earning businesses, leaving MySpace in the dust.

It is impossible to say that Facebook did not face any risk. Of course they did. Tremendous risk, especially regarding privacy issues. However, they still took that risk, made necessary changes, and moved forward.

Facebook itself is an amazing innovation, and they are continuing to create more. On November 15th, 2010, it announced a new feature being released soon: the next generation of Messages. It includes chat via SMS, chat, email or Messages, and even provides an @facebook.com e-mail address that functions differently than normal e-mail.

Facebook, always making new innovations, taking risks, and bringing in revenue at shocking rates in short periods of time, is a very successful entrepreneur.

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How Exactly is Facebook Making Money? – Technology Blog

See the Messages that Matter – Facebook