Why do Google, Yahoo, Hotmail, AOL, etc., provide huge server space for free?

Question

For example, upon signing up with Google and creating your account, you get over 6GB of space to stock your emails, photos or images, audio and video files and more. Similarly, Yahoo now has unlimited email storage. Gmail doesn't even has ad popups like Hotmail and Yahoo. And think of the background work they have to do everyday to keep the accounts secure, interfaces attractive and easy to use, server backups to ensure no data is lost.. etc. etc.

So where exactly do these companies make profit while giving away so much for absolutely free?

Anonymous · Accepted Answer

They are not giving up anything of value to them.  Google, etc have tons of disk sitting idle.  Very few people take advantage of a 6GB email account.  

Also Google collects information on you.  It is being stored for future use.  - Who knows what for.

Google makes so much now on ads it is worth it - advertizing to give you the equivalent of a couple of peanuts.  As long as you keep them in your mind - they keep making money.

Anonymous · Answer

You must remember one basic principle in life.
And that is that nothing comes free.By providing free space to store mails etc.they ensure more usage of their net service even when one logs in.,which is when they bombard the user with ads galore,which in turn prompts users to buy these or at least some of the products.The cost is recovered from these advertisers.This more than makes up for the 
freebies thrown our way.

Midnightsal · Answer

The advertisements people click on helps pay for it.  Some sites like this one gives you many options.

D3VILDOG · Answer

Its all in the ads.... the more you click the more they make. And the more you can save the more likely you are to use their site, which means your clicking ads on THEIR pages, which gets them money. 

:)

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Why do Google, Yahoo, Hotmail, AOL, etc., provide huge server space for free?

4 Answers