Ever wondered how facebook,zomato and most of the other internet businesses earn money. Probable answer will be advertising but why do the advertisers come to advertise on these sites?
Well it all starts with the platform ,yes a platform is build on which content aggregation takes place and lot of the users will come to interact on that because it acts as a lateral platform and provides an opportunity to share ,enjoy and learn from each other. When so many users aggregate at one place ,it is enticing for the advertisers too flock on the same platform and they advertise on the platform and the platform monetizes it. Initially few advertisers come to advertise but slowly advertisers increase looking at the existing traffic . This entire effect is called Network effect and serves as the business model for most of the internet business.
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