25 {{ upvoteCount | shortNum }}
25 {{ upvoteCount | shortNum }}

How does Twitter make money?

by mywebwork
22 replies
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
#make #money #twitter
  • Profile picture of the author Sean A McAlister
    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
    Signature
    New Product Launches, Affiliate Marketplace

     Need More Sales? More Affiliates? LaunchBoards.com
    {{ DiscussionBoard.errors[412677].message }}
    • Profile picture of the author jglover
      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
      Signature
      Join me on my next free public training: "How Smart Marketers Are Getting MORE Customers To Pay Them MORE Money, MORE Often..." - Click here.
      {{ DiscussionBoard.errors[412693].message }}
  • Profile picture of the author Debbie Songster
    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.
    Signature

    Getting back in the grove after taking a year off following a family tragedy.

    {{ DiscussionBoard.errors[412691].message }}
  • Profile picture of the author Preben Frenning
    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.
    Signature

    Content overload? Too many tabs open? Then
    check out my awesome tech startup! - It will make your life easier.


    Twitter? - http://twitter.com/Preben_Frenning

    {{ DiscussionBoard.errors[412694].message }}
  • Profile picture of the author valerieSONORA
    Don't have a clue. Good question. Guess they're not making anything?
    Signature

    siggy taking a break...

    {{ DiscussionBoard.errors[412698].message }}
  • Profile picture of the author 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!
    {{ DiscussionBoard.errors[412704].message }}
    • Profile picture of the author Kim Standerline
      I think your probably right

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

      Originally Posted by RDGatchel View Post

      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!
      Signature
      {{ DiscussionBoard.errors[412722].message }}
      • Profile picture of the author tomw
        Originally Posted by Kim Standerline View Post

        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
        Signature
        STOP THE TRAFFIK: PEOPLE SHOULDN'T BE BOUGHT AND SOLD
        Help Us Rescue, Rehabilitate And Reunite Victims With Their Families
        STOP THE TRAFFIK is a growing global movement of individuals, communities and organisations fighting to PREVENT the sale of people,
        PROTECT the trafficked and PROSECUTE the traffickers.
        {{ DiscussionBoard.errors[412733].message }}
  • Profile picture of the author J. Barry Mandel
    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?
    Signature
    {{ DiscussionBoard.errors[412742].message }}
    • Profile picture of the author ExRat
      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.
      Signature


      Roger Davis
      {{ DiscussionBoard.errors[412752].message }}
      • Profile picture of the author 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
        Signature

        Easy email marketing automation without moving your lists.

        {{ DiscussionBoard.errors[412841].message }}
        • Profile picture of the author Andy Money
          This is why web 2.0 is growing towards a steel ceiling.
          Signature
          {{ DiscussionBoard.errors[412909].message }}
        • Profile picture of the author Michael Forey
          Originally Posted by Neil Morgan View Post

          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
          {{ DiscussionBoard.errors[412911].message }}
        • Profile picture of the author CurtisN
          Originally Posted by Neil Morgan View Post

          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!
          Signature
          Curtis Ng (blog) - Product Launch Manager
          {{ DiscussionBoard.errors[413047].message }}
  • Profile picture of the author naphets66
    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
    Signature
    Kansas City SEO
    Digital Products Review
    {{ DiscussionBoard.errors[412949].message }}
  • Profile picture of the author 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?
    Signature

    Rock Cowles

    www.Kowulz.com
    "Argue your limitations and they are yours!" - Anthony Robbins
    {{ DiscussionBoard.errors[412964].message }}
    • Profile picture of the author zackriley
      Originally Posted by kowulz View Post

      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.
      Signature

      Are you trying to make money online? Send me a pm and I'll be happy to help you get started on the right track!

      {{ DiscussionBoard.errors[413420].message }}
  • Profile picture of the author Internetmoneymaker
    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.
    {{ DiscussionBoard.errors[412966].message }}
    • Profile picture of the author angela99
      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
      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
      Signature

      Everyone's a writer today. Get personal guidance from Angela.
      {{ DiscussionBoard.errors[413022].message }}
      • Profile picture of the author Mark Kaye
        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!
        Signature
        {{ DiscussionBoard.errors[413035].message }}
    • Profile picture of the author ExRat
      Hi 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?
      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'.
      Signature


      Roger Davis
      {{ DiscussionBoard.errors[413062].message }}
  • Profile picture of the author Neil Morgan
    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
    Signature

    Easy email marketing automation without moving your lists.

    {{ DiscussionBoard.errors[413074].message }}

Trending Topics