As our book notes, the most successful entrepreneurs know their market and their costs, and choose to market and target an audience that will provide them the most profit. In recent years, the most meteoric example of this type of success is Facebook. By now, everyone and their grandparents have at least one account. It provides a simple, free service that all ages enjoy. What is interesting about Facebook, is that it originally began as a service for college students only. You actually had to register with a student account to be eligible. As the popularity of the site increased, the resources available to Zuckerberg and his fellow founders also increased enabling him to expand his audience. Advertising and sponsorships are how most websites make money, but the folks at Facebook were able to incorporate premium apps for purchase that make more money above what their advertisers alone provide. This includes in-app purchases, music, and the ability to send virtual birthday gifts among others. Now, Facebook offers opportunities for businesses to advertise to their local demographic through their software. This is an asset for businesses to reach a larger market for a lower cost that ultimately benefits Facebook by driving page views, advertisement and sponsorships.
https://www.facebook.com/business/overview
In summation, if you can find a steady customer base for your venture (like college students), your likelihood of growing your business and increasing your audience and profits greatly improves.
