Facebook Offers Free Ads to Small Businesses

Facebook today announced a new program aimed at helping small businesses retain existing customers, build awareness of their brands and reach new customers among the social network's 800 million users.

Usage of online social networking sites like Facebook is growing. In July, more than 213 million Americans were active on the Internet, according to media research firm comScore. And the second most visited site for the month was Facebook.

Facebook's own data suggest that more than half of its 800 million active users have made a connection to a small business. That amounts to about 700 million connections between existing and would-be customers and local businesses, adds Facebook.

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Facebook has confirmed how business owners can access the free ad offer, according to several reports. Businesses interested in receiving the $50 freebie will need to first take out an ad on Facebook.

Like pay-per-click ads on search engines, when a consumer clicks on your Facebook ad, the advertiser (you) are asked to pay a set rate for that click -- anywhere from 5 cents to 25 cents. Facebook, starting in January, will give you $50 worth of those clicks for free. Note that the freebie will be awarded to owners on a first-come, first-served basis up to 200,000 businesses