It is interesting the way that Twitter is evolving and one might ask, how does Twitter produce it’s revenue to finance the running cost of maintaining their website. Obviously, there are investors that are willing to finance Twitter as it is seen as the next “big thing”. However, and at the end of the day, it is a business and as such will eventually need to finance itself. May I recall that they have recently declined and offer of roughly 500 million, ouch!
That said, TechCrunch recently published an article that highlights the possibility of Twitter charging companies to have an account. Here is an excerpt of what they say:
No big surprises there, as this is often cited as one of the most obvious moves Twitter could make to start generating revenue, although many are expecting more from the startup who has become notorious for its lack of an apparent business model even after nearly 3 years of existence. Stone also said they will not start charging individual users, and that the move could “create revenue-generating features to tap into the way brands use Twitter as a hybrid marketing and customer-service tool.”
Stone did not give any details regarding pricing or the specific way Twitter would go about charging users and for what exactly. As a reminder: the startup has raised $20 million in venture capital to date and recently turned down an acquisition offer from Facebook.
One of the most recent examples of companies using Twitter for commercial purposes is Dell, who reportedly made $1 million in sales during the holidays via the micro-sharing utility, and recently started giving discounts exclusively to its followers.
We’ll see more of this type of behavior in the future beyond any shred of doubt, but I’m wondering what exactly is considered as ‘commercial usage’ by Twitter management: does it mean any way of promoting a product or service or only when there’s sales activity connected to the corporate accounts? And will companies be prepared to pay up for use of the service at all?
Read the full article on TechCrunch.
So, what do think about this possibility? Will it make Twitter less attractive as it is now or will it increase further their popularity?