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Three business models that can bring Twitter billions

The Twitter microblogging service is becoming more and more popular, and the creators are not taking absolutely any steps to commercialize it. This is surprising to some analysts. They argue when and how best to monetize Twitter, while continuing to wonder that nothing is still being done. They say that even Twitterrific “sucker” and that one has already started to make money (they sell licenses for $ 15), but Twitter does nothing. Anyway, will people agree to pay for such a relatively primitive small messaging service?

A well-known entrepreneur Jason Calacanis entered the discussion. He immediately stated that it was not necessary to think in small categories. A service like Twitter is quite capable of generating billions of dollars. There are at least three business models that can give Twitter that kind of money within 12-24 months.

1. Tweet ads
Imagine if every tenth, twentieth or hundredth tweet will contain ads? Is it really so terrible? No, not at all. “Your free twitter account is sponsored by the Apple iPhone” - such a message would have been well received by users, and advertisers would also be satisfied. Such advertising can generate a large CTR if it is properly targeted. In addition to text, it is possible to use graphic advertising. It will stand out particularly well on text-based Twitter pages and will therefore be particularly effective. For comparison, on the pages of Flickr such advertising will have to "compete" with photos, which is much more difficult.

2. Advertising by SMS
Users will not mind if every 100¬-200 messages via SMS they will receive an advertisement. If / when Twitter starts selling ads via SMS, then they will have the best platform in the world for contextual SMS advertising. It may even interest Google and mobile operators.
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3. Subscriptions
It can be assumed that approximately 1-5% of Twitter users would agree to pay for the professional version of the account with guaranteed reliability: say, with uptime of 99.9999% and additional professional features, such as storing MP3 files, photos and videos. This channel is able to bring the company "only" $ 10-50 million per year, so we will not consider it in detail.

So, what happens? Twitter developers just don’t have to worry about finding business models for the next year or two. From all of the above, it follows that the main task is to accumulate * a massive * critical mass of users. You need at least a hundred million people. If the monthly audience grows to such a figure, the project can be estimated at several billion dollars.

When you have a huge audience, no matter how you spin, you will definitely make a profit. Even an absolute idiot with 10-20 million users can make a lot of money. With unlimited access to venture capital, you need to focus on attracting users, and you don’t need to think about money, it’s a much simpler task.

via Jason Calacanis .

Source: https://habr.com/ru/post/18823/


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