Social media has been bringing people together in one arena for many years. It may have been previously through workplace forums or hobby forums, yet regardless of where it is hosted, it is when a group of people congregate together. The very definition of this media is quite broad. It refers to any place where there are blogs, pictures, technology or people gathered together on one specialized medium. This medium is now the internet and it is where people are coming together to share stories and find friends.

There are many examples of social media on the web. Some of the more frequently visited sites are MySpace, Facebook and even the site Youtube. Each site allows members to upload their own information so that they can build a network of friends and family. Business experts are showing an increased interest in getting involved with these sites as well because of the opportunity to make money.

So is there money to be made through the Facebook or MySpace websites? Yes, and it is through project advertising that this is able to happen. Have you ever noticed when you go through the Facebook login that you see advertisements located around the sides of your profile? Each time someone goes through this link and makes a purchase or simply visits the website, a portion of the money is given to Facebook. That is why the site is free to everyone. The investors make their money through advertising services.

However, one of the problems that Facebook is facing is that it is being eclipsed by super giant MySpace. With thirty-six million members versus MySpace's seventy-six million members, money is becoming an issue. At one time Facebook was a definite money making enterprise but business analysts forecasted that the cost of running the website would eventually eclipse the revenue coming in. This could be a definite problem and it may result in the site becoming extinct or being forced to charge for membership.

What happens if Facebook begins charging a fee though? Well, why would you pay for a profile on Facebook when you could go to its competitor MySpace for free? The only other alternative may be for Facebook to be acquired by a larger media group, such as Google or Yahoo. This would allow Facebook to remain a free social networking site.

The social media website Facebook does have a lot of challenges it must overcome if it is to continue to compete with its chief rival MySpace. It must find a way to bring in new investors and make more money if the site is to continue to operate. Business experts may be hedging about the net losses of 2005 but Facebook still remains a contender.

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