Twitter Business Model

http://www.wired.com/techbiz/people/news/2008/08/portfolio_0804

Seems there are two ways they plan on capitalizing on twitter ad revenue and selling the service to companies as way to keep in contact with it’s customers.

“The most obvious solution to how Twitter can make money would be to serve advertising directly in a user’s Twitter feed (or “timeline” as the company calls it), or elsewhere on the site. But Stone and his fellow execs are wary of alienating Twitter’s hardcore user base, which has grown accustomed to an ad-free service.”

“Another possible revenue stream is corporations paying to use the service to stay in frequent contact with their customers. Several large companies, including Dell, Whole Foods, and JetBlue, have already set up corporate presences on Twitter to let customers know about special offers and even answer customer questions.”

“In Dell’s case, the company says it’s made “well over” $500,000 in sales from sending special offers from its Dell Outlet store to its Twitter group, which it began in June 2007. The group has almost 1,500 “followers” who receive its messages on a regular basis.”

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