# How is Google financed?

**URL:** <https://boards.straightdope.com/t/how-is-google-financed/200166>\
**Category:** Factual Questions\
**Created:** [September 7, 2003, 10:22pm UTC](https://boards.straightdope.com/t/how-is-google-financed/200166 "2003-09-07T22:22:59Z")\
**Posts on this page:** 8\
**Page:** 1

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**Author:** ![trabi](https://avatars.discourse-cdn.com/v4/letter/t/ecae2f/32.png) [@trabi](https://boards.straightdope.com/u/trabi)\
**Post date:** [September 7, 2003, 10:22pm UTC](https://boards.straightdope.com/t/how-is-google-financed/200166/1 "2003-09-07T22:22:59Z")

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Was just reading [this article](http://news.bbc.co.uk/2/hi/technology/3084442.stm) about Google’s fifth birthday, which contains the following statistics:

> [@](#):
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> 200 million searches a day  
> 3.1 billion web pages indexed  
> More than 1,000 employees

According to the article it started up with four employees in a garage, and later received a $1 million boost from “investors, friends and family.”

MY question is this: How does it sustain itself or make a profit? It doesn’t carry banner ads or sponsored search results. It must cost a lot to payroll 1,000 people and keep the hardware up to date so it can handle the traffic, not to mention the continuous development required to keep it at the cutting edge.

These ‘investors’ didn’t just give their money away, they must be getting - or hoping to get - some kind of a return on their investment.

The only possibility that springs to mind is that they also have stakes in the ‘consultancies’ that advise on how to boost your ranking in the search results, but surely that could leave them open to charges of ‘tweaking’ things at source for the benefit of their special clients.

Or am I missing something really obvious here?

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**Author:** ![yabob](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/yabob/32/2821_2.png) [@yabob](https://boards.straightdope.com/u/yabob)\
**Post date:** [September 7, 2003, 10:51pm UTC](https://boards.straightdope.com/t/how-is-google-financed/200166/2 "2003-09-07T22:51:25Z")

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Actually, they do advertise - try searching for something like “printer cartridges”, and you will see “sponsored links” brought up on the right and at the top. Get the details under the “Advertise with us” link on the home page.

They also sell the search engine technology or customized searches for use in other sites. Usually within corporate intranets. They sell a specialized rack mount appliance, too. Look under the “Business Solutions” link.

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**Author:** ![TheLoadedDog](https://avatars.discourse-cdn.com/v4/letter/t/35a633/32.png) [@TheLoadedDog](https://boards.straightdope.com/u/TheLoadedDog)\
**Post date:** [September 7, 2003, 11:37pm UTC](https://boards.straightdope.com/t/how-is-google-financed/200166/3 "2003-09-07T23:37:09Z")

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I think even the huge Yahoo has google-powered searches these days. You can bet your ass _that_ isn’t a two-dollar deal.

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**Author:** ![Tradnor](https://avatars.discourse-cdn.com/v4/letter/t/cab0a1/32.png) [@Tradnor](https://boards.straightdope.com/u/Tradnor)\
**Post date:** [September 7, 2003, 11:42pm UTC](https://boards.straightdope.com/t/how-is-google-financed/200166/4 "2003-09-07T23:42:53Z")

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Fairly recently, Google has created a service allowing you to place their text-based ads on your own web site, so that’s another way they pull in some cash.

> [@](#):
>
> \*Originally posted by trabi \*  
> \*\*The only possibility that springs to mind is that they also have stakes in the ‘consultancies’ that advise on how to boost your ranking in the search results, but surely that could leave them open to charges of ‘tweaking’ things at source for the benefit of their special clients. \*\*

FTR, Google does not do this, nor do any other search engines I know of.

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**Author:** ![typhoon](https://avatars.discourse-cdn.com/v4/letter/t/ed8c4c/32.png) [@typhoon](https://boards.straightdope.com/u/typhoon)\
**Post date:** [September 8, 2003, 12:07am UTC](https://boards.straightdope.com/t/how-is-google-financed/200166/5 "2003-09-08T00:07:12Z")

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They license their search technology to companies.

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**Author:** ![Nanoda](https://avatars.discourse-cdn.com/v4/letter/n/ce73a5/32.png) [@Nanoda](https://boards.straightdope.com/u/Nanoda)\
**Post date:** [September 8, 2003, 12:08am UTC](https://boards.straightdope.com/t/how-is-google-financed/200166/6 "2003-09-08T00:08:46Z")

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How’s Google make it’s fortune? Just ask Google! 😉

Seriously, if you scroll 1/2 way down [here](http://www.google.ca/corporate/facts.html), you can see their business model. Their intranet search dealy (aka the [Google Search Appliance](http://www.google.com/appliance/)) is pretty kewl. And it comes in nifty yellow. 🙂

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**Author:** ![Bill\_H](https://avatars.discourse-cdn.com/v4/letter/b/a5b964/32.png) [@Bill\_H](https://boards.straightdope.com/u/Bill_H)\
**Post date:** [September 8, 2003, 4:40am UTC](https://boards.straightdope.com/t/how-is-google-financed/200166/7 "2003-09-08T04:40:47Z")

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Tangential correction: I know they raised not $1m, but $25m back in 1999. I’m not sure if they raised any future rounds. This included bread from Kleiner Perkins and Sequoia Capital, two very heavyweights.

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**Author:** ![trabi](https://avatars.discourse-cdn.com/v4/letter/t/ecae2f/32.png) [@trabi](https://boards.straightdope.com/u/trabi)\
**Post date:** [September 8, 2003, 7:58am UTC](https://boards.straightdope.com/t/how-is-google-financed/200166/8 "2003-09-08T07:58:06Z")

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> [@](#):
>
> How’s Google make it’s fortune? Just ask Google!

DOH! :smack:

Thanks everybody 🙂
