I was thinking about Twitter this morning, about how great of a company and idea it is. There is no mistaken the fact that Twitter is special; its viral ,friendly and has raised a $55mm war chest.
So what is this special place I’m talking about? It’s the place where you have plenty of money, plenty of momentum and a great idea. So whats missing?
A business model.
Twitter hasn’t been able to monetize the service yet, although 2mm people use the service everyday. The good news is Google was in this exact situation having raised 25mm and built their mountain view offices having very little revenue. The other good news is that Twitter is growing substantially and have a lot of eyeballs to sell adverts to.
My 2 Cents
I think Twitter will wait 1-2 years from now; when the economy is picking back up or just starting to, once they have say 10x the users they have now (probably 2-3 years away). After they have the amount of users they should offer a way for each user to agree to receive ‘1 tweet txt ad’ a day – This should be after you have had only so many followers; that way it isn’t the only tweet newbs are getting.
*open up to VERY select group of advertisers, MSFT, GOOG, VERIZON etc.. then charge them either per message delievered or per a click sent to their site (managed by a 3rd party analytics program)
I can see a company paying $10k to reach 30,000 people that have mentioned their product before, and when they open it up to everyone (via adwords type ads) your mom and pop bakery can hit you up when you mention your in the mood for that muffin.
So I think Twitter becomes “A adwords for real time, connecting brick and motar stores around you to your thought stream”