Monday, June 22, 2009

Twitter Looking For Revenue Model

Twitter, short messages to tell others what is on your mind, has long been absent an advertising message. For those that like to follow businesses, however, ads are expected. For example, follow Gary Vaynerchuk and Wine Library tweets and receive messages on upcoming specials, free shipping, and other tidbits about wine. In this case Wine Library gains "fans" and a social network to share messages and Twitter the company gets nothing.

If your interest in a product leads to a search for guidance and ultimately a place to buy an item, Twitter might just gain on the handshake. "E-commerce, including links to products and turnkey payment mechanisms, is a likely revenue stream for Twitter, said Todd Chaffee, a Twitter board observer and general partner at Institutional Venture Partners, which has invested in Twitter. That gives us one more hint about how Twitter will make money." But can that generate enough cash flow? I find all the message coming through as too much and my inclination is to turn it off or really filter. I have personally become less of a fan of Twitter. As a Facebook friend of Wine Library to get this same messaging.

For Twitter to make money, they may need to associate an ad message with each Tweet, and that may not be as welcome to its users. As more advertising comes onto its pages, it may just kill this golden goose.

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