How does Google make money?

The other day someone asked me how Google makes its money. At the time I called upon the knowledge I had and talked about the ads they have in the search results, the Chromebooks and Android systems they are selling, and Google Apps and Docs.

This week Google announced, it was disappointed with its 27% rise in revenues. Yes you read right, it was disappointed! Profits were up 6.4% and revenues 27%. In the same period, (the last quarter of 2011) Microsoft saw its revenues rise just 5%, and its profits fall by 0.15%!

Here is the interesting (weird) thing, Google’s share value fell 10% after the announcement, whilst Microsoft’s grew by around 2%! How crazy.

Anyway, this got me thinking, what are all the way Google makes money, as that is a lot to get just from the ways I mentioned.

How does Google make money?

The fact is, the majority of Google’s revenues come from the ads it presents to users on search result pages. However in recent years it has started making more and more money in other ways. So what are these other ways Google makes money?

Chromebooks

Introduced mid last year, Chromebooks are laptops powered by Google Chrome OS, where the laptop and the internet are one. There are no programs, desktop or start menu, the who experience runs from the cloud, utilising all Google’s (and other) online applications.The Google Chrome Logo

Samsung and Acer are the two firms which currently offer Chrome OS powered laptops, however expansion to more brands in the future is inevitable. Samsung and Acer obviously take their share the sales, as will Amazon and the other places Chromebooks are sold, however the laptops do make money for Google.

Android

I assumed that Google made money from Android, however I was wrong – Google does not make money from its Android mobile operating system. Android is a Google-led open source mobile OS framework, however Google does not profit from it.

Google Android's Logo

YouTube

Since Google bought YouTube in 2006, the site hasn’t been that profitable for it. YouTube is now the site with the third most traffic on the web, meaning that it has huge potential, however until recently, it was only making money from ads.

Before Google AdSense ads used to appear alongside videos, which they still do, however now they also advertise within videos too. Furthermore, YouTube have started offering online movies, which users can pay to watch from the comfort of their own home – or wherever they are.

Google Storage

Many Google services offer online storage, however this is only a finite amount. Should you want to purchase extra storage for Gmail, Google Docs, Picasa or Blogger (photos on blogger, not posts) then you can do so from Google Storage. I doubt this brings in Google a lot of revenue, but nerveless, it makes the internet giant some money.

Google Store

Google have an online store which distribute to may different locations around the world. They sell everything from branded keyrings and juggling balls, to t-shirts and even accessories with past Google Doodles printed on them.

DoubleClick, AdSense and AdWords

The majority of Google’s revenues come from the advertisers who use AdWords and DoubleClick. These ads are then either shown in the search results, or on websites which host AdSense units. Google makes lots of money out of ads. It doesn’t tell AdSense hosts what cut of the advertisers fees they get, but it makes Google a lot of money, so I would guess that they take home more than website owners hosting their ads.

Other Ways Google Makes Money

These are not the only ways Google makes money, other ways include, Google Apps for Business, Google Cloud Connect, Google Docs, Feedburner (through ads), Google Earth Pro, Google Mini (where you effectively buy the Google search engine to use on your own site/intranet), Google Checkout and more.

Hopefully this gives you some insight into just how many ways there are that the search giant that is Google makes money.

The benefits of remote working for SMEs over winter

In order to help small and medium enterprises (SMEs) continue to operate in severe weather conditions over winter, industry experts now advise small firms to consider implementing flexible remote working systems, allowing employees to work from home.

Business man's hand writing virtual private network concept

Remote working has grown to become an important element of business productivity for SMEs.

With the current technology available, firms now needn’t suspend their business in severe weather, with a combination of remote technologies and common sense allowing SMEs to continue trading.

Remote working can maintain productivity and reduce office costs over the winter months. Studies have found in the past that employees working away from the distractions of their desk and the surrounding office environment increased their productivity by a considerable margin.

What exactly is remote working?

Put simply, remote working is when people do their work at home or outside the workplace. With the current financial climate tighter than ever, businesses are always looking to bring down their running costs and remote working is one way of achieving this goal.

In many industries Virtual Private Networks (VPNs) are created to enable employees to login to a company network and access all the information they need to carry out their work, whether it is word documents, emails or project briefs. Remote working also enables businesses to employ and outsource work to people all over the world.

There are many other advantages of remote working for both small business owners and employees alike:

Advantages of remote working for SME owners

  • Fewer office costs – with staff able to use remote and cloud computing to access emails, files and any other necessary information, SMEs can cut costs such as printing, electricity and any other staff management charges.
  • Increased productivity and results – Instead of having to down tools and stop work on client projects, owners can allow staff to carry on their work from home. This is also an excellent employee incentive as staff can save money on travel to and from the office or studio.
  • Greener working – remote working can dramatically reduce a businesses’ impact on the environment by reducing the number of employees that commute to the office or studio.

Advantages of remote working for employees

  • Enhanced work-life balance – employees that are allowed to work remotely in severe weather naturally have an improved work-life balance, with the ability to spend more time with children and spouses.
  • Reduced stress levels – taking your employees away from the cut and thrust of the office environment can reduce stress levels. Remote working in more comfortable, homely surroundings can foster greater productivity.
  • Increased trust and responsibility – While SME owners must choose the right people to work remotely, those fortunate enough to be able to work from home will have their morale boosted by the extra trust and responsibility placed upon them by their employer.

The key challenge for SMEs is to ensure employees are disciplined enough to handle the freedom of remote working. Today an increasing number of small business owners appreciate the benefits working from home can bring to their company.