Google made a whopping $60 billion in sales in 2013. As you may know, the company has released Gmail, Docs, News, Hangout, Maps and loads of other products, but where does the revenue come from? When Larry Page and Sergey Brin founded the company, they focused completely on search. The idea was a hit amongst many of their peers, but they had to find out a way to make money. While Google helped its users, they had to make profits too, and that’s when they forayed into the world of advertising. Technically, Google accumulates about 93% of its revenue through advertisements – a feat its rivals (other search engines) failed to grasp. Another important factor is Google’s scalable nature that encourages growth beyond belief. Google’s search engine is capable of answering almost any question, and by knowing that, the company rakes in huge revenues by the advertisements it places alongside the results.

IN THIS EPISODE, YOU’LL LEARN:

  • What is Google’s primary means of revenue?
  • Why does everybody win with Google Adwords and Google Adsense?
  • Why is data driven arguments the driver behind Google’s business model?
  • Ask The Investors: How do we calculate opportunity cost of stocks?

This article provides an overview of the book, In The Plex, which is an account of Billionaire’s Larry Page and Sergey Brin’s development of Google. If you want to read our executive summary of, In the Plex, view this page instead. If you would like to download all of our book summaries, click here.

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