I have always wondered how these big app ceos run their company and become millionaires, like how are they earning? later after the app picks up sure they have sponsors but imagine 2012 instagram just launched, HOW IS IT MAKING MONEY THROUGH DOWNLOADS AND PEOPLE USING IT? its insane! please explain.
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Data collection and resale, AD’s etc – usually if a product is free then more than likely you are the product
Very basic ELI5
Usually, serving ads. Advertisers pay the platforms to post ads to their users.
In some cases, before ads or other revenue streams exists (subscriptions, whatever), the apps can operate at a loss by getting investors to fund that loss, hoping to make their money back with profit in the future once the app starts making money
One word: Advertising.
Businesses pay Instagram (and other apps) to advertise on their platform. A lot of apps are also initially funded by investors to survive until they earn enough advertising money to become profitable.