Social Media

How Facebook Will Make Money From the Facebook Marketplace

When we first covered the Facebook Marketplace, it wasn’t completely clear how the social network would make money from the service. I was creating a listing on the site last night when this aspect became abundantly clear.
Once you complete a listing, you are given the option to promote it in any number of networks using Facebook Flyers the mechanism that is also used to advertise or make announcements regarding events within networks. You can choose what parts of your listing appear on the flyer, who can see it, how many impressions the flyer gets per day and for how many days. The current price for flyers is 5,000 impressions for $10.
msaleem fmarkfly1 How Facebook Will Make Money From the Facebook Marketplace
msaleem fmarkfly2 How Facebook Will Make Money From the Facebook Marketplace
While giving prominence to certain listings is appears to be the only method they’ve used to monetize the service, seeing as Facebook Marketplace is already much better than Craigslist, there’s no reason why the service has to be free. And I see no reason why Facebook won’t start charging for listings or transactions once the marketplace becomes more popular.

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4 thoughts on “How Facebook Will Make Money From the Facebook Marketplace

  1. The problem with those flyers, though, is that they don’t convert. For $10 I’d rather spend time advertising on a niche website where the ad is noticeable and not subject to banner blindness.
    Go ahead, give it a shot. But if you blindly start huge, don’t come crying to me. Test that sucker first. I’m pretty sure you’ll find, as I did, there’s more relevant places to advertise from. You have no guarantees you are hitting your target market from Facebook Flyers.

  2. Classifieds and Social networks are extremely difficult to put together.
    The idea is not bad, but their is no real targeting except for special very related products (maybe university scripts…). Facebook is a place to “hang-out”. Ebay and Craigslist a place to trade products and goods. This flyer system won’t change anything and will probably be used for professional marketers s, b/c it’s even cheaper than running banners.