Internet Companies

How Do Internet Companies Make Money With Free Services?


Everything on this planet works with money. To buy something, whether it is a service or a product, you need to pay. Yet, you pay for the internet but you don’t pay to use Google. Isn’t that perplexing? It makes you think if there is some sort of partnership between your service provider and Google so that they both benefit but what about Yahoo and Bing? Do they also have partnerships with your service provider? Now, that sounds far-fetched. How can every free website have a partnership with your service provider? If they do, that means, they won’t just have a partnership with your service provider, but with every service provider there is! So, what’s the secret behind this? How do these companies and websites make money with free services? Let’s find out!

There are many ways for a company to generate profits and one of the most common ways is advertising. Apart from that, there are other ways as well which are discussed in much detail below.

Ways To Generate Profit

Profit Through Advertising

When we go on to search in Google and open a website, we can see that there is at least one ad at the side of the page or in the middle of the page. Even when we watch videos on YouTube, we get multiple ads. Websites offer ad spaces to businesses who want to advertise. They can purchase these ad spaces for a limited time and run their ads. It is an understood fact that the bigger the ad space, the higher the price.

In case you were wondering what would happen if businesses stop advertising on their sites, that’s highly unlikely. The reason is that there is no shortage of businesses and a business cannot operate without its customers. Seeing as many people use Google, YouTube, and other free websites, it is a great chance for a company to get exposure. Businesses that want to target a specific audience can also use this technique to their advantage. Putting their ads up on certain websites that are similar to their industry can help them gain more customers. There is also a whole process that goes on behind the website of only targeting interested audiences. Businesses can avail this by paying more.

This is the same as how TV channels play ads of different products and services and generate profit through these ads.

Profit Through Data Collection

Have you ever had a weird moment when you’ve been talking about something with your friend like needing a lamp and then when you scroll through your social media, you notice ads of lamps popping up? At that point, you’ve probably felt like you’re being watched or spied on. Well, you’re not entirely wrong.

The thing is that when you go onto free websites, like Google, for instance, you might have searched for lamps before or after your talk with your friend. So, what happens is these free websites collect your information like your browsing habits, user location, and any preferences or unique patterns in your buying behavior. This information is worth a lot to many companies as they can then see how best to fulfill the user’s needs and wants. So, websites tend to sell this information to these companies for a price and sometimes, also use it for themselves. However, it should be noted that not all companies and websites do this.

People can avoid this by protecting their privacy with the help of reliable internet providers. Some internet providers offer the security of users’ information and privacy. You can find reliable internet providers in your area offering the best TV and internet bundles with the protection of privacy on our website.

It should be mentioned here that user privacy is not to be taken lightly and the General Data Protection Regulation came into effect in May 2018 to ensure people’s protection. Instead of collecting unlawfully, it requires websites to seek the consent of people before collecting their information.

Profit Through Other Sources

Internet companies have started looking into other sources of income as they cannot solely depend on advertising. Some other sources of income could be cloud storage, apps, and subscriptions. Some of them are also expanding towards high-tech products that could be a significant source of income for them. As companies cannot sell user data anymore and there is only limited information regarding that, they need to make these decisions.


To keep yourself safe from websites storing your data without your knowledge, it is important to have security measures like Firewall, anti-virus software, and more. On BuyTVInternetPhone you can find multiple options for secure and reliable internet connections that can help to protect your privacy and information. Another safety tip is to check the terms and conditions of important apps that you probably use.

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