How does Twitter make money?

mywebwork · 01-11-2009, 03:54 PM

I have an idea yet another social networking service that in many ways is similar to Twitter. I enjoy Twitter myself but have always been curious as to how they make any money?

They don't charge for membership
They don't market via e-mail
They have no advertising
They have to run a pretty big server
They have to pay when someone uses SMS via Twitter

Any thoughts?

Aloha

Bill

Sean A McAlister · 01-11-2009, 03:56 PM

From what i understand they dont make money yet...I could be wrong.

They raised $ 20 million and support a staff but no revenues.
They are working on it.

Perhaps others will have more info

Debbie Songster · 01-11-2009, 04:03 PM

I was reading an article in one of my magazines and apparently that's the problem. They have no real monetization model but they are working on it.
It went on to say that one of the founding partners resigned because of it.

jglover · 01-11-2009, 04:04 PM

I believe thats right... I would post a link to a blog post that i found that confirms this, but i dont have 15 posts yet, so no links or images....sorry i couldnt be more help...ask me again in 7 posts. lol

Preben Frenning · 01-11-2009, 04:04 PM

They are probably just building momentum at the moment.

I think facebook did the same at first, but then they started with lots of advertising when a lot of people started using it.

I think twitter will get some sort of advertising eventually. And even now, it's possible to buy tweets from people who are members at the different sites providing this.

valerieSONORA · 01-11-2009, 04:05 PM

Don't have a clue. Good question. Guess they're not making anything?

RDGatchel · 01-11-2009, 04:06 PM

I think they are going to be doing the Facebook and MySpace model.

* Open the doors with a "cool" service ...
* Let it go viral ...
* Get tons of bodies ...
* Let it hit a momentum phase ...
* Start monetizing the community ...

I SURE AS HECK HOPE that they don't send out "Twitter Ads" ... that would really suck!

Kim Standerline · 01-11-2009, 04:13 PM

I think your probably right

Geeze the partner who resigned is going to be a bit sick when they do lol

Quote:

Originally Posted by RDGatchel

I think they are going to be doing the Facebook and MySpace model.

* Open the doors with a "cool" service ...
* Let it go viral ...
* Get tons of bodies ...
* Let it hit a momentum phase ...
* Start monetizing the community ...

I SURE AS HECK HOPE that they don't send out "Twitter Ads" ... that would really suck!

tomw · 01-11-2009, 04:16 PM

Quote:

Originally Posted by Kim Standerline

I think your probably right

Geeze the partner who resigned is going to be a bit sick when they do lol

He would have probably resigned the everyday role and retained his equity...a great place to be.

Thomas

Justin Mandel · 01-11-2009, 04:21 PM

The guy who created Twitter created other sites which I believe he sold for a major profit.

So, I guess he could turn this one over for a cool 8 figures?

ExRat · 01-11-2009, 04:25 PM

Hi,

Google will buy it eventually and integrate it into their 'package of stuff' (google reader etc all signed into via gmail) and also their advertising network. Pure speculation, but I'm willing to stick my neck out. It has a worthy amount of eyeballs already.

Neil Morgan · 01-11-2009, 04:57 PM

I don't know if this is true or not but I read yesterday that Yahoo offered them $500 million of Yahoo shares but they turned it down to wait for a cash deal.

Cheers,

Neil

Andrew Maule · 01-11-2009, 05:21 PM

This is why web 2.0 is growing towards a steel ceiling.

Michael Forey · 01-11-2009, 05:24 PM

Quote:

Originally Posted by Neil Morgan

I don't know if this is true or not but I read yesterday that Yahoo offered them $500 million of Yahoo shares but they turned it down to wait for a cash deal.

Cheers,

Neil

That is what I was going say sell out to Google or somebody like that.

Michael

naphets66 · 01-11-2009, 05:40 PM

They get money from angel investors. I think they were holding out to get bought out and then changed their tune. Details: Twitter Hiring Product Manager To Bring In The Revenue

kowulz · 01-11-2009, 05:46 PM

I still haven't figured out the appeal of Twitter. "I not only don't care about identity theft, but I want people to stalk me!"?

Is it some form of self aggrandizing Megalomania?

Internetmoneymaker · 01-11-2009, 05:47 PM

Social sites have huge potential for value.
The good thing is the next big thing has to be different,youtube has many clones but non that rival it.
For those who stumble on the new ideas and find ways to see the project through,they have a good chance of the big payday.

angela99 · 01-11-2009, 06:16 PM

Twitter makes zero income.

According to Evan Williams (the creator of Blogger), who's Twitter's CEO, monetization is imminent -- Twitter CEO: The revenue's coming soon, but I won't tell you how | Webware - CNET

Quote:

The revenue plans aren't just ads or sponsorships. "We want revenues to be product-based. Google built something that can really scale, and that's our intention as well."
Google's a big model for a small company (Twitter has 25 people), and Williams' laid-back affect belies his ambition. He says, "I worked on Blogger for six years, and I don't think that's as big as Twitter. Twitter will dwarf that."

Sounds fascinating.

Way back in 2003 when Google bought Blogger from Williams, no one could work out why. A year or two on, with the domination of AdSense then and since, everyone knows why.

Watching what Williams does with Twitter will be fascinating in 2009.

Cheers

Angela

Mark Kaye · 01-11-2009, 06:21 PM

Start-up capital from Venture Capitalists is paying everyone's salaries right now. Someone will buy it...most likely Google. When they do, large checks will be handed out all around and the partners will move on to the next big thing.

Google will then monetize based on one of their current models.

At least, that's my thinking...

How much do you think Google would pay for Warrior Forum? There are a few thousand ACTIVE members in a specific Niche right here...I would think this property could garner some pretty hefty cash!

CurtisN · 01-11-2009, 06:26 PM

Quote:

Originally Posted by Neil Morgan

I don't know if this is true or not but I read yesterday that Yahoo offered them $500 million of Yahoo shares but they turned it down to wait for a cash deal.

Cheers,

Neil

According to Wikipedia, Facebook offered them $500 million in FB shares. Yahoo, FB, or both?

Judging by Twitter's fanatical horde of users, I wouldn't be surprised if somebody eventually buys them out for 10 figures!

ExRat · 01-11-2009, 06:32 PM

Hi Kowulz,

Quote:

I still haven't figured out the appeal of Twitter. "I not only don't care about identity theft, but I want people to stalk me!"?

Is it some form of self aggrandizing Megalomania?

For online marketers, it's a semi-justifiable time-waster. My point is not to knock anyone, but to answer your question about the 'appeal of twitter.' Am I making sense?

If I play monopoly online for two hours, I can't possibly pretend to myself that I wasn't wagging off.

If I am 'marketing' on twitter, in a manner where I am not going to (be able to) track the time vs ROI....I can tell myself I was 'busy'.

Neil Morgan · 01-11-2009, 06:39 PM

Quote:

According to Wikipedia, Facebook offered them $500 million in FB shares. Yahoo, FB, or both?

You're right. It was Facebook. I didn't pay much attention to it.

Cheers,

Neil

zackriley · 01-11-2009, 09:00 PM

Quote:

Originally Posted by kowulz

I still haven't figured out the appeal of Twitter. "I not only don't care about identity theft, but I want people to stalk me!"?

Is it some form of self aggrandizing Megalomania?

Having a substantial list of followers on twitter is a great way to connect with tons of people 'all at once' without spending much time (thank you twitter) and occasionally mentioning a good resource means $$$ in your pocket.

If it's treated like most people treat facebook or myspace (a million posts a day about your daily tasks, laundry, shower, etc.) you're not only going to not make money, you're not going to build a big list.

01-11-2009, 03:54 PM	#1
mywebwork Senior Warrior Member War Room Member Join Date: Sep 2008 Location: Honolulu, Hawaii, USA & Montreal Canada Posts: 2,218 Blog Entries: 1 Thanks: 759 Thanked 724 Times in 505 Posts	How does Twitter make money? I have an idea yet another social networking service that in many ways is similar to Twitter. I enjoy Twitter myself but have always been curious as to how they make any money? They don't charge for membership They don't market via e-mail They have no advertising They have to run a pretty big server They have to pay when someone uses SMS via Twitter Any thoughts? Aloha Bill

01-11-2009, 03:56 PM	#2
Sean A McAlister Entrepreneur \| Consultant War Room Member Join Date: Jul 2008 Location: , , USA. Posts: 1,617 Blog Entries: 46 Thanks: 263 Thanked 455 Times in 139 Posts Social Networking Contact Info	Re: How does Twitter make money? From what i understand they dont make money yet...I could be wrong. They raised $ 20 million and support a staff but no revenues. They are working on it. Perhaps others will have more info
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01-11-2009, 04:03 PM	#3
Debbie Songster Songster Shops War Room Member Join Date: Mar 2007 Location: , Arizona , USA. Posts: 969 Blog Entries: 19 Thanks: 93 Thanked 178 Times in 86 Posts Social Networking Contact Info	Re: How does Twitter make money? I was reading an article in one of my magazines and apparently that's the problem. They have no real monetization model but they are working on it. It went on to say that one of the founding partners resigned because of it.
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01-11-2009, 04:04 PM	#4
jglover HyperActive Warrior War Room Member Join Date: Jul 2008 Location: Arkansas , USA. Posts: 221 Thanks: 20 Thanked 33 Times in 19 Posts Social Networking	Re: How does Twitter make money? I believe thats right... I would post a link to a blog post that i found that confirms this, but i dont have 15 posts yet, so no links or images....sorry i couldnt be more help...ask me again in 7 posts. lol
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01-11-2009, 04:04 PM	#5
Preben Frenning Creative Kid War Room Member Join Date: Aug 2008 Location: Oslo, Norway Posts: 653 Blog Entries: 1 Thanks: 125 Thanked 63 Times in 51 Posts Social Networking	Re: How does Twitter make money? They are probably just building momentum at the moment. I think facebook did the same at first, but then they started with lots of advertising when a lot of people started using it. I think twitter will get some sort of advertising eventually. And even now, it's possible to buy tweets from people who are members at the different sites providing this.
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01-11-2009, 04:05 PM	#6
valerieSONORA formerly annoyedgirl War Room Member Join Date: Nov 2007 Location: USA. Posts: 1,337 Thanks: 161 Thanked 183 Times in 122 Posts Social Networking	Re: How does Twitter make money? Don't have a clue. Good question. Guess they're not making anything?
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01-11-2009, 04:06 PM	#7
RDGatchel Active Warrior War Room Member Join Date: Sep 2003 Location: Baltimore, MD USA Posts: 62 Thanks: 7 Thanked 19 Times in 7 Posts Social Networking	Re: How does Twitter make money? I think they are going to be doing the Facebook and MySpace model. * Open the doors with a "cool" service ... * Let it go viral ... * Get tons of bodies ... * Let it hit a momentum phase ... * Start monetizing the community ... I SURE AS HECK HOPE that they don't send out "Twitter Ads" ... that would really suck!
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01-11-2009, 04:21 PM	#10
Justin Mandel Trust Establisher War Room Member Join Date: Aug 2007 Location: Long Island, NY. Posts: 2,968 Thanks: 526 Thanked 170 Times in 127 Posts Social Networking Contact Info	Re: How does Twitter make money? The guy who created Twitter created other sites which I believe he sold for a major profit. So, I guess he could turn this one over for a cool 8 figures?
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01-11-2009, 04:25 PM	#11
ExRat Dare To Be Different War Room Member Join Date: Nov 2005 Location: U.K. Posts: 8,875 Thanks: 1,318 Thanked 2,807 Times in 1,041 Posts	Re: How does Twitter make money? Hi, Google will buy it eventually and integrate it into their 'package of stuff' (google reader etc all signed into via gmail) and also their advertising network. Pure speculation, but I'm willing to stick my neck out. It has a worthy amount of eyeballs already.
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01-11-2009, 04:57 PM	#12
Neil Morgan Senior Warrior Member War Room Member Join Date: Jun 2007 Location: Lanarkshire UK Posts: 2,487 Thanks: 98 Thanked 314 Times in 223 Posts Social Networking	Re: How does Twitter make money? I don't know if this is true or not but I read yesterday that Yahoo offered them $500 million of Yahoo shares but they turned it down to wait for a cash deal. Cheers, Neil
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01-11-2009, 05:21 PM	#13
Andrew Maule Articles-Written.com War Room Member Join Date: Dec 2007 Location: NY, USA Posts: 2,693 Blog Entries: 1 Thanks: 109 Thanked 524 Times in 112 Posts	Re: How does Twitter make money? This is why web 2.0 is growing towards a steel ceiling.
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01-11-2009, 05:40 PM	#15
naphets66 HyperActive Warrior Join Date: Mar 2003 Location: Kansas City, MO, USA Posts: 224 Thanks: 7 Thanked 1 Time in 1 Post Social Networking	Re: How does Twitter make money? They get money from angel investors. I think they were holding out to get bought out and then changed their tune. Details: Twitter Hiring Product Manager To Bring In The Revenue
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01-11-2009, 05:46 PM	#16
kowulz kowulz.com Join Date: Dec 2008 Location: Upstate, South Carolina Posts: 53 Thanks: 14 Thanked 9 Times in 8 Posts Social Networking Contact Info	Re: How does Twitter make money? I still haven't figured out the appeal of Twitter. "I not only don't care about identity theft, but I want people to stalk me!"? Is it some form of self aggrandizing Megalomania?
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01-11-2009, 05:47 PM	#17
Internetmoneymaker Active Warrior Join Date: Jan 2009 Posts: 30 Thanks: 1 Thanked 4 Times in 4 Posts	Re: How does Twitter make money? Social sites have huge potential for value. The good thing is the next big thing has to be different,youtube has many clones but non that rival it. For those who stumble on the new ideas and find ways to see the project through,they have a good chance of the big payday.

01-11-2009, 06:21 PM	#19
Mark Kaye HyperActive Warrior War Room Member Join Date: Dec 2008 Location: Jacksonville, FL Posts: 291 Thanks: 52 Thanked 77 Times in 35 Posts Social Networking	Re: How does Twitter make money? Start-up capital from Venture Capitalists is paying everyone's salaries right now. Someone will buy it...most likely Google. When they do, large checks will be handed out all around and the partners will move on to the next big thing. Google will then monetize based on one of their current models. At least, that's my thinking... How much do you think Google would pay for Warrior Forum? There are a few thousand ACTIVE members in a specific Niche right here...I would think this property could garner some pretty hefty cash!
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