Facebook Makes $1.20 Per Virtual Cow Sold

Posted on August 12, 2012

CNN tech reporter Laurie Segall explains how Facebook makes it money in this video. The company made $1.21 per user last quarter. One of the ways is from the sale of virtual items. Facebook makes $1.20 per $4 virtual cow purchased on Zynga's Farmville game and $1.20 from the sale of a virtual sword in another one of Zynga's social games.

Money from the sale of virtual items make up about 18% of Facebook's revenues. Advertising is Facebook's largest resume stream. However, Facebook's revenue growth has been slowing while its costs are rising.

They also have a lot of mobile users and Facebook is finding it far more difficult to display advertising to its mobile customers.