How do companies make money?

How do companies make money?

Alberto Annunziata

There are different ways in the IT department in which companies can make money. The first one, and maybe most important for many firms in the IT department, is by advertising; many companies and other firms, such as American Airlines, advertise on different websites such as Google, Yahoo!, or facebook. In fact, the only way Google makes money is by allowing other companies to advertise on their website; if thy did not allow people to advertise on their search engine, Google would probably not be existent, because their main income come from advertising.

However, there are other IT companies such as Microsoft or Apple that also make money by selling software such as Microsoft word for PCs or IMovie for MACs; these programs became almost a need for every person who buys a computer, therefore, if you already spent around 400 dollars on a new PC, you will also have to buy the Microsoft word package which costs around 200 dollars. This helps Microsoft make double the revenue. In addition, every five years they come up with different upgrades of their software, which means that people will have to buy those upgrades in order to be able to use them on their computer.

In conclusion, even if the IT department seems to have few ways of making money, those ways are very profitable. Advertising and selling of software are the two most important ones for an IT firm and it doesn’t matter how famous the IT company is, there will always be people who are willing to advertise on a specific website or invest in one of them.