Texas Startup Blog written by Alexander Muse

Twitter’s Business Model

April 25, 2007

Since the Big in Japan team built Egorcast I have been playing with Twitter.  Without even trying I have 71 friends and 28 followers.  Lots of people, besides our own team, have been busy building Twitter mash-ups (click here for a partial list).  Why?  I don’t really know, perhaps ‘because EVERYONE is doing it?’

David Chartier wrote a post earlier today titled, "Six ways Twitter can make money."  He explains that the creators of Twitter are doing a lot of ‘hinting’ about practical uses for the service, but they aren’t saying how they plan to make money.  David has a few ideas:

  • Twitter Pro (paid service offering more features ~ freemium model)
  • Merchandise (Twitter t-shirts?)
  • Twitter for Business (a la Google Apps)
  • Twitter Forums with tasteful ads

David did talk to Ev who suggested how Obvious might start generating revenue in short order:

  • Selling tasteful sponsorships
  • Charging companies who use it for marketing or commercial purposes (like MySpace)

It will be interesting to see how Twitter’s business model develops.