How is Twitter going to make money?
Good question, a few weeks ago (early 2009) they raised yet another round of capital, a strong round of $35MM. VCs require a business plan for that amount of money, and they’ve indicated that they’re seeking to provide services to brands. I predict that they will offer services to brands to secure their corporate names, provide analytics, and crude customer and prospect management tools. It’s unlikely they’ll generate revenue from ads as we know that ads don’t perform well in social networks, it could disrupt the user experience, and also tweets can be exported to other clients –purging ads out of it. It’s possible for them to monetize with contextual ads as people search, or develop a currency system for third parties to use during transactions, I think those are far fetched.
