How do websites generate money? Is it by amount of members, or the amount of time people spend on a particular site?
Well, facebook & myspace both sell ads based on CPM or cost per thousand impressions. The ad gets viewed 1,000 times, and then they make between 1-10 dollars, depending on the ad, size, placement, targeting, ethnogrphic variables, etc.
FunAdvice only has "CPC" ads, which are cost per click, so we only make money when people click on the ads.
Google adds.. every time someone click on one of them they get money.
Google adsense :)