How does Twitter make money?

  • translation missing: en.shared.topic.styles.singular.talk
  • Updated 4 years ago
There are no ads that I can see on the site and I can't think of any other revenue streams that would not violate their privacy policy. So, I'm curious, how is it that they pay for their servers and employees?
Photo of Zybron

Zybron

  • 6 Posts
  • 0 Reply Likes

Posted 7 years ago

  • 1
Photo of

  • 1 Post
  • 0 Reply Likes
SMS charges for those who use their cell phones for updates and notifications.
Photo of anh tuan

anh tuan

  • 7 Posts
  • 0 Reply Likes
well, good, but i know a site for earn money, very great for every body, answer survey and get pay, join now for free : http://www.cashcrate.com/2130126
Photo of anh tuan

anh tuan

  • 7 Posts
  • 0 Reply Likes
well, good, but i know a site for earn money, very great for every body, answer survey and get pay, join now for free : http://www.cashcrate.com/2130126
Photo of anh tuan

anh tuan

  • 7 Posts
  • 0 Reply Likes
well, good, but i know a site for earn money, very great for every body, answer survey and get pay, join now for free : http://www.cashcrate.com/2130126
Photo of ben

ben

  • 1 Post
  • 0 Reply Likes
It is really easier than you think to make money off of twitter once you know what you're doing, I own an amazing piece of software that does all the work for me and makes me an extra $400 a month online and I'm willing to share that software with you, read about it at http://moneywithtwittenator.blogspot.com it's really incredible
Photo of Zybron

Zybron

  • 6 Posts
  • 0 Reply Likes
Hmm, ok. Seems like only a very small portion of their userbase actually makes use of text messaging for tweets. I guess it would be enough for a small revenue. Is that really the only revenue stream?
Photo of mdy

mdy

  • 6533 Posts
  • 1129 Reply Likes
Twitter doesn't charge its users for the service (at least for now). It's our mobile phone companies who are making the money from our SMS usage.

In fact, Twitter pays the mobile phone companies to send us our notifications.

See also this page on Twitter's knowledgebase for more confirmation.
Photo of Zybron

Zybron

  • 6 Posts
  • 0 Reply Likes
Ok, so that revenue source is out of the picture - which begs the question of how they continue to operate? Where is the revenue stream that I'm obviously missing here?
Photo of mdy

mdy

  • 6533 Posts
  • 1129 Reply Likes
For a discussion on how Twitter will make money, it might help to read this blog post from Fred Wilson about Twitter's business model. Fred's VC firm invested in Twitter.
Photo of Zybron

Zybron

  • 6 Posts
  • 0 Reply Likes
Ah, ok. So the real answer is they don't make money...yet. Thanks. At least it wasn't that I couldn't identify a revenue stream but rather that there isn't one at the moment. :)

So, I wonder which direction they are likely to take when they do decide on a business model: Ads? Subscriptions? Both? (Or likely, ads on free accounts and none on subscription accounts?)

Anyone have any thoughts on something else entirely?
Photo of MINISTER STEVIE TEE

MINISTER STEVIE TEE

  • 4 Posts
  • 0 Reply Likes
hi:

I'm a business major and run 3 businesses. Keying in on facebook, myspace and some others. Twitter has partner sites that retweet or link the tweet accounts up. They have to allow the other sites such as Blog sites to connect for a fee. This is news to the world thru partnershipping and on those sites is where they place the google ads. So the google ads are reffered by twitter in reality since they are allowing the tweets to be republished. Publishing goes a long way especially if it's from large celebrities. Imagine gathering all the tweets from P-Diddy, Donald trump, Oprah, Martha Stewart and putting them in a book, How many people would buy to look inside their life. It's publishing and if you read in their terms it will have info like with youtube , they have the right to republish any music or video you place on their site to their partner sites. One of my songs was on a site I never heard before and it was only released on youtube because of the things I said in the beginning. The site was selling my song for $1.99 times that time the million of celebrities and artist who are on there. This is why the major record labels get a piece of their pie because they read the fine print. So the answer is publishing of whats placed on their site.
Photo of MINISTER STEVIE TEE

MINISTER STEVIE TEE

  • 4 Posts
  • 0 Reply Likes
hi:

I'm a business major and run 3 businesses. Keying in on facebook, myspace and some others. Twitter has partner sites that retweet or link the tweet accounts up. They have to allow the other sites such as Blog sites to connect for a fee. This is news to the world thru partnershipping and on those sites is where they place the google ads. So the google ads are reffered by twitter in reality since they are allowing the tweets to be republished. Publishing goes a long way especially if it's from large celebrities. Imagine gathering all the tweets from P-Diddy, Donald trump, Oprah, Martha Stewart and putting them in a book, How many people would buy to look inside their life. It's publishing and if you read in their terms it will have info like with youtube , they have the right to republish any music or video you place on their site to their partner sites. One of my songs was on a site I never heard before and it was only released on youtube because of the things I said in the beginning. The site was selling my song for $1.99 times that time the million of celebrities and artist who are on there. This is why the major record labels get a piece of their pie because they read the fine print. So the answer is publishing of whats placed on their site.
Photo of Mrs Somerhalder

Mrs Somerhalder

  • 2 Posts
  • 0 Reply Likes
If they don't make money. Why did they make the site?
Photo of Mrs Somerhalder

Mrs Somerhalder

  • 2 Posts
  • 0 Reply Likes
If they don't make money. Why did they make the site?
Photo of mattburn96

mattburn96

  • 1 Post
  • 0 Reply Likes
Twitter is cool it doesn't need any of that stuff to run, the internet is free and the internet is cool, why ruin it?
Photo of Chris Thomson

Chris Thomson

  • 502 Posts
  • 118 Reply Likes
Actually, if I remember right, they had a few Google ads for a little while (on individual tweet pages), but I doubt that brings in any revenue (not many people view INDIVIDUAL tweet pages, I'd think). It seems like those ads have disappeared.
Photo of Nor

Nor

  • 1 Post
  • 0 Reply Likes
Why do people care how businesses make money. Just use their free service and enjoy!
Photo of krislogy

krislogy

  • 2 Posts
  • 0 Reply Likes
coz they wanna copy that n try make money themselves! :D .. no seriously. thats y i'm readin this post! rofl
Photo of cleanmail2008

cleanmail2008

  • 1 Post
  • 0 Reply Likes
wow thats pretty ignorant. - who cares as long as its free. That'll get you real far in life.
Photo of lazyrussian

lazyrussian

  • 1 Post
  • 0 Reply Likes
You must be 10 years old, no? It's interesting to see how a company who has no advertising and pays other businesses (like Cellular companies) stays afloat. Their income flow comes mostly from VCs injecting money into their company and their lucrative connections (e.g. Yahoo, Google).
Photo of Robert Shurtleff

Robert Shurtleff

  • 1 Post
  • 0 Reply Likes
Because if they don't make money at some point, they will go out of business.
Photo of Twity Teen

Twity Teen

  • 2 Posts
  • 0 Reply Likes
its necessary for webmasters to know!
Photo of

  • 1 Post
  • 0 Reply Likes
@Nor Why do people care how businesses make money? Knowledge is power. By understanding how a specific business makes money one can leverage that knowledge and apply it to one's own business, company or operation. The sharing of knowledge is how we grow as a society. One should always want more knowledge and information regardless of whether it can be applied directly to what you do. Who knows, it just might come in handy at some point down the line.
Photo of krislogy

krislogy

  • 2 Posts
  • 0 Reply Likes
yes.. u said it right!
Photo of Twity Teen

Twity Teen

  • 2 Posts
  • 0 Reply Likes
yes u r right!!!
Photo of Nauticus

Nauticus

  • 1 Post
  • 0 Reply Likes
>Of course we must ask how businesses make money. What will happen when you see a business opportunity that requires an initial capital? Will you just go in? I know I'll ask myself that question.

About Twitter. It seems they still haven't introduced their business model and although everything happens without the public knowing I think they are trying to avoid the Facebook type of revenue generation. I'm so annoyed by all the ads at Facebook and this is one of the biggest reasons I don't use it.
Photo of Nadeem

Nadeem

  • 1 Post
  • 0 Reply Likes
Ideas for Twitter to make some money:

1. Twitter news distribution service for publishers
Allow people to subscribe to various channels of news spilt by countries and vertical segments. Feed people news of their choice for public news distrubition. Publishers need to pay a fee to reach potential news subscribers. Publishers today are looking for an effective way to redsitribute their content.

Publishers need special tools to see how many followed their article, time spent, whcih region etc

2. Start a sponsored twitter award program.
The best twitter page, the most followed twitter group, the most original twitter page, the most unusal twitter page, etc.

3. Start twitter Jobs
Quick daily jobs updates from placement agencies who pay to use the Twitter subscriber base.

Please let me know your comments.

Nadeem Hood
nadeem@cpidubai.com
Director - Online Services
CPI Dubai
www.cpidubai.com
Photo of Richie

Richie

  • 1 Post
  • 0 Reply Likes
Good discussion. I have just joined Twitter (June 09) but still can't see any advertising. With an alexa ranking of 38 (i.e. the 38th biggest website worldwide) they have massive traffic. Their revenue potential is...massive. As a multiple website owner, I am also curious. Where do their bucks come from??? More discussion please.
https://twitter.com/AllFamousQuotes
Photo of luke

luke

  • 1 Post
  • 0 Reply Likes
they could try and support it on donations, i know this is how wikipedia survives! and that's probably far more bandwidth intensive. or they could buy up all the sister sites that people use in conjuntion with twitter that are supported via advertising, this way they could have all the advertising revenue they wanted while leaving the actual twitter site as it is.
Photo of jeminar

jeminar

  • 3 Posts
  • 0 Reply Likes
Don't underestimate the power of raw information!
As a company that craves information about what's cool, things like Google Trends is an invaluable tool for us. There are lots of information products that Twitter could do to provide an "early warning service" about things that people tweet about. We'd pay, and our customers would pay. I'd guess $10k/year X 1k customers = $10m. Covers the hosting fee, anyway! And development -- well others do that. Marketing -- the media do that for them; or virally.
Photo of yamini

yamini

  • 2 Posts
  • 0 Reply Likes
Hi ppl!! useful discussion!! i read few articles which i wud like 2 share with u !!

Here is some generalized info .....

The most common way for Web sites to generate revenue is to :

1- allow companies to advertise on the site. It may be hard to believe, but A social networking site like Facebook has millions of active users. Access to that enormous user base is a valuable commodity. For that reason, advertisers might be willing to pay more for an ad on Facebook than for a comparable ad on a smaller social networking site.

2-charge a membership fee to users. While most social networking sites avoid this strategy, a few have been able to use it effectively. Many online dating sites withhold key features from users until they choose to upgrade to a premium account. For example, you might be allowed to browse for a potential match on a dating service, but you'd have to upgrade if you wanted to send your soul-mate-to-be a message.

Marketing products on Twitter is a potentially more interesting idea from a revenue perspective. Late last year, Dell reported that it had made over $1 million in revenue thanks to Twitter. More recently, Dell announced it would start offering exclusive deals to users who follow its accounts on Twitter.

But i don find many advertisements in Twitter. but heard Twitter charges for certain communities/companies to advertising their products.....

This information i read from many sites..
Hope it was useful!!
Sorry if i had bored u!

Cheers,
MINI
Photo of yamini

yamini

  • 2 Posts
  • 0 Reply Likes
currently i m building application using Twitter api... so just learning how other websites are making money out of it!!!
It will be more helpful if i know its business model!!!

Cheers,
MINI
Photo of Matt

Matt

  • 1 Post
  • 0 Reply Likes
Here's a great article/interview with Biz Stone (co-founder of twitter) regarding the state of Twitter and possible revenue streams.

http://www.pbs.org/kcet/tavissmiley/a...

Sounds like they will continue to offer the service for free but expand the value of current services for businesses with things like analytics offerings, certifying your business's twitter page, optimizing your twitter account for customers. Really could be a pretty good business model...They avoid alienating users with busy ad space but can target businesses as the paying customer
Photo of Nearly Illicit

Nearly Illicit

  • 2 Posts
  • 0 Reply Likes
this is very interesting. didnt realise that twitter wasnt making any money at the moment. so who pays the bills?
Photo of jeminar

jeminar

  • 3 Posts
  • 0 Reply Likes
Twitter is valued by some at about $250m, which means they can raise venture capital on a share of that. In June 2008, they raised $15m over the $5m previously taken. VCs are happy to buy into a company if they think they can make a big return, though I don't know what share of the company is owned now by VCs.

In Matt's link above, they identify 50 staff, say at $150k each, plus say $5m/year server costs, so I'd guess they need about $12.5m/year to run.

So in short, they are selling a share of a future sale price to venture capitalists, and living off that money.

Source: http://www.techcrunch.com/2009/01/24/...
Photo of Nearly Illicit

Nearly Illicit

  • 2 Posts
  • 0 Reply Likes
I didn't even know that that was possible. I learned something new today. Thanks Jeminar!
Photo of jeminar

jeminar

  • 3 Posts
  • 0 Reply Likes
Especially in the dotcom era, but still now, people often create companies with no desire to ever make revenue. The idea is that they have a promising idea which they develop using VC money and once developed and proved they sell the idea (with code and media buzz etc) to someone who is actually able to monetize it.

They are funded by VCs who get a disproportionately large share of the company compared to the money they put in (because they take a lot of risk). It's the business equivalent of a university research grant.

The value of a company is dependent on what someone is prepared to pay. So, perhaps this question should be less about "how does twitter make money?", and more about "how could someone else make money with the twitter installed base, media buzz, technology and patents?".
Photo of Benjamin Kohl

Benjamin Kohl

  • 1 Post
  • 0 Reply Likes
It is all venture capital. Only God knows what their long-term plan is to appease their investors...
Photo of bkskribe

bkskribe

  • 3 Posts
  • 0 Reply Likes
Honestly I asked myself the saem question and its just weird that they don't at least put 1 ad on each page which leads me to conspiracy theorize it was created by the Government to keep easier tabs on us and help national security because they can monitor twitter easier than phones calls and texts because now some ppl DM wat they normally would have texted, plus they can search for keywords like bomb, it is unheard of that a site so popular would not have ads or any revenue sourcae by not putting ads they are passing up easy millions
Photo of bkskribe

bkskribe

  • 3 Posts
  • 0 Reply Likes
I understand what Jeminar is saying but Twitter has already proven itself, the site is actually more popular than myspace right now so for it not to be making any revenue by placing ads on its site is ridiculous
Photo of bkskribe

bkskribe

  • 3 Posts
  • 0 Reply Likes
Sorry but if they had ads on their site, just 1 per page, no1 would mind and they would have a great amount of revenue, the main question is why wouldn't you put any ads when you could easily make money and not risk people not liking the sit anymore?