Twitter: Does it have legs?


Share on LinkedIn

Unless you’ve been living under a rock, you’re likely familiar with Twitter. It’s the big buzz in SM right now. I’ve been using it regularly for about a few months and have found some interesting uses for it. However, unless your a die-hard tweeter, or marketer it’s hard to see a lot of the value in the service. It’s basically a public-facing, searchable, text message repository. In my opinion, if it’s going to have any legs, they’re going to have to make some updates to the interface. There are already a ton of app’s that have sprung up offering the features that Twitter should be offering themselves already.

As far as I can tell, there is no clear revenue model with the service as of yet, but apparently it’s in development. They’re not making a dime yet, but I’m sure their rev model will involve advertising. Theres no way subscribers would pay for the service, not the critical mass anyway.
It’s ironic however that there are a ton of users already advertising their products and content through tweets all day… It’s possible that the folks at Twitter have been watching how the users are interfacing with the system, to decide how to best monetize all that traffic. It’s an insane amount of traffic, and at present it seems that’s all they have. It’s enough traffic however to get Google’s attention. Theres a rumor released this week that they’ve offered Twitter $250 Million for their platform (read the techcrunch article here).
As I was researching their revenue model, I found an interesting article discussing this issue. Silicon Alley recently completed a contest titled “Create a Twitter Revenue Model” to help generate ideas for the service. It’s a cool idea, I’m sure there were some intersting submissions.
There are already a ton of people jumping on the bandwagon, building services and tools around the platform. Last week I attended a local entrepreneur “Barn Raising” in Utah called Launchup. One startup presented their idea called TweetBooty, multiple online twitter accounts, which you can follow, that publish coupons from local businesses. I was having a hard time seeing the value of building an online coupon distribution system on the coattails of Twitter, but they even had VC money behind them…very surprising. They plan to make 5 cents per published ad. That’s alot of nickels boys and girls… With advertising appearing to be ultimately controlled by Twitter, I wonder how that will factor into their business model.
If I were Twitter, I’d take the $250,000,000 and run. They’ve done all the work to create the market for the platform, get people behind it. It’s time to let the folks at Google work their advertising magic and get out of dodge.
What are your thoughts? Do you see the system evolving more, filling the needs such as applications such as Tweetdeck, Twitseek and others? What ways do you see the company monetizing all that traffic?
Carson Poppenger
After building a process to contact, qualify, and convert legacy data into new sales opportunities, Carson Poppenger co-founded Squeeze ( to help other businesses accelerate sales, grow revenue, and increase profitability. He currently serves as president of the company and lives in Utah with his wife and three children.


Please use comments to add value to the discussion. Maximum one link to an educational blog post or article. We will NOT PUBLISH brief comments like "good post," comments that mainly promote links, or comments with links to companies, products, or services.

Please enter your comment!
Please enter your name here