How does Facebook get its revenue?

Facebook makes its revenue through advertising. Facebook takes your private information and markets it to companies that will manipulate their ads to relate to your likes and interests. The developer behind the largest names on Facebook ( Farmville, Poker, Cafe World, etc.) is the largest purchaser of Facebook's self-serve ads. These advertisement are displayed in the sidebar of most pages of the site which includes user profiles, events, groups, Facebook pages and third-party applications. Recently, Facebook also generates a large amount of revenue form Facebook Gift Shop, which enables users to send virtual gifts to one another.