Five Business Models For Twitter

Twitter has famously decided to create a giant userPremium services for users
base before even coming up with a business model.This is my least favorite idea, mostly because I think
This is a hazardous plan, and one that's earned themit's hard to convince consumers to pay for web
a lot of mockery. But one advantage to growing aservices, especially when they can get these services
platform, with an open API, first and retrofitting afor free. That said, there are some opportunities.
business model later is the opportunity to observe1. Charge for text message delivery. One of Twitter's
how users use and hack the system themselves.biggest costs is sending tweets out as text
Twitter has paid attention to how users use themessages. There's an opportunity to change this
system, such as using @ signs for replies andexpense into a revenue stream.
hashtags for topic tagging and implemented them2. Limit number of tweets per day, and charge for
into the system.anything over. This will probably sound horrible to
Additionally, hundreds of Twitter clients andmost Twitterers, but it could work out. Craig's List
applications have been built. Companies like Microsoft,charges for certain types of ads. This has the dual
Adobe, and Apple have long looked to 3rd partyeffect of creating a revenue stream while preventing
developers for innovation. There's quite anabuse of the ad system. Metafilter charges $5 for a
opportunity to steal implement some of the ideaslifetime membership to keep out the riff-raff. So
already in use and build revenue streams from them.charging people a small fee before they can flood
I'll start off with a couple of obvious ones that haveyour Twitter feed with up to the second details
been discussed, and move into less obvious, and inabout their laundry washing might actually benefit
my opinion, more lucrative ideas.everyone.
Ads on search pages3. Filters and protected tweets. Same as the possible
This is something Twitter's talked about doing before.package for business users. But again, I definitely
Twitter is rightly cautious about serving ads on theirthink this should be free. Currently, Twitter only gives
pages, but they could probably get away with sellingyou the option of having all tweets hidden except to
PPC ads on search results pages. They could buildpeople you follow, or having all tweets visible to
their own platform, or use someone else's. If I wereeveryone. I'd like LJ-esque granularity here.
Chitika or Yahoo!, I'd be courting Twitter for thisProfessional services: license the technology to
contract right now.companies and government agencies
Premium services for business usersTwitter could build custom microblogging applications
This is has been specifically mentioned by Evanfor businesses, and perhaps more lucratively,
Williams before. So here's a"sub top five" of specificgovernment agencies. Twitter's use for emergency
services they could offer.coordination and disaster relief is much touted - they
1. Validated account names to prevent publicshould capitalize on this. They can offer secure
embarrassment. Also, mirror accounts for variants onmicroblogging services behind the firewall, custom
a name (ie, @exxon, @exxonmobil, @exxonsucks,tailored to an organizations needs. Competition:
@exxonrules, @XOM, etc.)Laconica, an open source Twitter clone that powers
2. Cross posting - Allow users to post the sameidenti.ca.
tweet across multiple accounts (ie, post to bothDigital payment system
@sergeybrin and @google at the same time). ThisThis is my favorite: compete head-on with PayPal.
can be done now with various clients.There are a few PayPal competitors out there
3. Autofollow users who follow you. This can be done(ePassporte, Revolution Money Exchange, Google
with bots, but it's just one of those things that wouldCheckout), but Twitter seems like the perfect
be nice to have included in a premium package. Thisplatform for a payment system. There's already a
should be done across accounts as well (such as thethird party solution trying to do this: TwitPay. I'm not
@sergeybrin and @Google example noted above).ready to hand my bank account info over to
4. Filtering. Let business users, who will be followingTwitPay, but I would to Twitter. If Twitter can
thousands of people, trim their lists to read only whomake it easier to transfer money amongst users, and
they want. This can be done with TweetDeck nowtake a little off the top, this could be their killer
but LiveJournal style filterting is sorely needed.revenue stream.
(Really, this feature should just be added for free forCrazy idea: Twitter could become a virtual free bank,
everyone.)offering their own digital currency that can be traded
5. Geo-locative services - Yes, the idea of sending athrough Twitter. Give a certain amount of starting
coupon to someone's mobile as they pass a store iscredits to verified users, and let the market
now cliche. That doesn't mean that there isn't moneydetermine the actual value. Hey, maybe if they limit
to be made doing it. Twitter should add somethe number of tweets per day they could make
geo-locative features for GPS users eventually, and it"tweet credits" tradable - a la cell phone minutes in
would only make sense for them to allow opt-inAfrica.
location based promotions.