This post was guest blogged by Michael Conrad from Make Money Online blog.
Since it was released, thousands of users on Facebook have taken their turn in trying out Facebook’s API’s. The programs range from simple games to mini book stores. At first, these programs were created for the user to have something interesting to put on their page, but the developers got smart. They said, why should we spend so much time making these programs when we don’t receive anything back from them? That is where monetization came into play.
Facebook allowed the developers to display an unlimited number of advertisements in their programs. Developers got to work including advertisements on their download pages and inside the actual programs. After some testing, it was realized that contextual advertising was probably not the best route, so developers focused on promoting affiliate links, or links that send you to a product page. Instantly, developers started to see profits skyrocket as users would them their program to other users, and thus more people would click on the links.
Right about now, you should be wanting to get into this. It sounds like easy money; all you have to do is build a program and put ads inside it. However, it’s definitely not that easy. Only a handful of programs will become popular enough to create a decent profit. But let’s just say that your program does become popular enough. Here are some ways to monetize your Facebook app:
CPM Banners: CPM Banners pay the publisher whenever a user views the ad. These would go either in your download page or somewhere in the app.
CPC Banners: CPC Banners pay the publisher whenever a user clicks on the ad. These would go in the same place as CPM Banners.
CPA Systems: CPA Systems pays whenever a user does something like take a survey or sign up for a product. Same place as above.
Affiliate Links: Affiliate links send the user to a page where a product is being sold. If the user buys the product, the publisher get paid a percentage of the profit. These links go inside the content of the app.
Although the most popular of the four is affiliate links, all of the other advertisements can generate decent revenue for your Facebook app.