How Does Pinterest Make Money?

Pinterest – a new social network is dragging more and more attention. Maybe it is because of a fantastically fast grow (from 1,6 million users in September to almost 11 million users in February) which reminds me of Facebook grow, or because of the huge number of site views and generating web traffic bigger than Google +, YouTube an Linkdeln.

These days, Pinterest is in the centre because of the news that it is making money by adjusting and following links attached with users Pin’s.

Reports allegations show that this popular social network which is based on virtual billboard, is adding affiliate links on some of the Pins and especially the ones that contains goods that can be found on Amazon, Ebay and hundreds of other online shops. 

 On this way, online profit of Pinterest is percentage for example if someone clicks on some of that affiliate links and buys a product from some of that Pin’s, Pinterest is making money.

Blog LLSocial was the first one to drew attention on fact that Pinterest, which allows users to collect and share things that they like, is using a service for adding links on affiliate products which is named Skimlinks. This service is quite innovative because they automatically go trough site and add affiliate links wherever there is a link that is leading to a product that has an affiliate program connected with it.

Pinterest astonished a lots of people because social media is primary focused on web traffic grow and then on online profit ( remember Twitter and Facebook in their first years).

With 50 million visits and with almost billion page views monthly, it is obvious that Pinterest is now making a nice amount of money from affiliate profits.

Executive director of Skimlinks, Alicia Navarro, admitted that Pinterest is making money from following users pins and she sees nothing wrong in that, justifying it by a wish of Affiliate networks to help online managements to monetise their sites.

“Small blogs or bigger managements like Pinterest collaborate with affiliate partners in a way that when a link sends a visitor to a sellers site (which is included in an affiliate network), and then a user purchases something, seller will pay to an affiliate network, affiliate network will then pay to a site that sent a visitor. Skimlinks takes approximately 25% for their services from generated affiliate income. Advertisers and sellers pay only if a user buys a product. Social media Pinterest is one of many companies that uses services such as this and that became an usual practice in online marketing.” – says Alicia Navarro

However, a thing that raised so much noise about the way that Pinterest is making money is that a social media never announced that it is modifying links by adding tracking codes on a site.

Everything they needed to do is to announce link modifying in Terms of use.

Online profit made with affiliate marketing surely means a lot to Pinterest which is making fantastic results. If we soon hear that Pinterest is making money in a different way it shouldn’t surprise us.