Twitter Founders: Revenue Plans In The Works

By AP's Elliot Spagat:

CARLSBAD, Calif. — Twitter Inc.'s co-founders say the rapidly growing online communications company will eventually charge fees for its services, but it's unclear which ones and what will drive revenue.

"There will be a moment when you can fill out a form or something and give us money," said Evan Williams, co-founder and chief executive officer.

"We're working on it right now," Williams said at The Wall Street Journal's D: All Things Digital conference.

Williams and Twitter co-founder Biz Stone mentioned possible revenue-generators, including a service that would authenticate the source of information. For example, Dunkin' Donuts could pay to make sure that impostors don't send messages under its name.

Still, after nearly one hour of questions from journalists Walt Mossberg and Kara Swisher and from the audience, the co-founders gave no clear picture of Twitter's business model. Stone demurred when asked what would be the company's key revenue driver in two years.

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Williams said he wasn't opposed to banner advertising but was unenthusiastic.

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"I think it's probably the least interesting thing we could do," he said.

Williams said one of his top priorities was hiring more people to help grow the company but he didn't give a headcount target. San Francisco-based Twitter has 43 employees, he said, double its count in January.

Twitter allows anyone to write about what they're doing or what's on their mind in messages sent through the Web or cell phones, also known as "tweets," which are limited to 140 characters. The unconventional, free service has attracted millions of users.

The co-founders said they know the hype surrounding Twitter won't last forever.

"If you pay attention to it too much, you can run yourself off the rails," Stone said. He added, "Pretty soon, everybody's going to hate us."

The privately held company has been a subject of buyout speculation by a big technology company, but Williams said he believed Twitter would remain independent.

Comments

[KennethZenger]

Twitter could develop several business models that integrate their technology into business communications, crisis communications, and research for companies. This could encompass several models. One model could be to develop segmented subscription-based plans for companies to use the service as a customer service communication system that allows companies to stay connected to their customers. They could also develop turn-key crisis communication systems that integrate company cell phones and allow instant messaging to company management teams during crisis situations. They could start to enhance the communication capabilities beyond the 140 characters for these segmented subscription services. The enhanced services area could incorporate need to know information such as emergency weather updates, etc. I would love to help them develop revenue generating business models. They have unique opportunities that people are not seeing.

Kenneth Zenger
www.chiefmarketist.com

[bluejoewho]

YOu are about 5 years to late. Those services have been offered for some time now.

Twitter is a joke and no one is going to get rich off of it.

[NYCPub]

Answer me this: Who finds a way to make money online first? Twitter or The New York Times?

[andyg]

Neither my bet.

[NYCPub]

To be fair, the NYTimes actually makes money from its online presence today- Twitter does not (as far as we know).

[NevaforLeadership]

The New York Times.

It has value. Value in its information media networks. Twitter has no value. There is absolutely no lasting value in tweets about what people are doing. It is already being overtaken by commercial tweeters -- the beginning of the end.

The New York Times already makes money online. Just not enough yet. Advertising has always kept newspapers afloat. No reason for that to change. It is no longer a buyer's (newspaper's) market. Online news outlets have thousands of online competitors. They are no longer regionally and/or demographically protected. It has become a seller's (advertiser's) market. Many newspapers and journalists will go down. That's what's scarying the hell out of them, and they are trying to blame the consumers/readers (bad move).

I think The New York Times (with new up-to-date management) will survive.

[loki]

These guys and others like them, the face books, myspace, and the rest of them, are like high powered drug dealers. They get you hooked in on their services. they get you to depend on them, they even get businesses to invest a lot of time and money using their services to promote there. Like huffpo with a twitter feed for example. gotta create a department and hire people to do it.. right? Then , after people are hooked, they slowly start to charge fees, and once that horse is in the gate, its a race to see how much you can reap from your addicts.

[Martyn Collins]

Those guys look ready for take off. I now declare that my CEO lecture chair will be a barbershop chair or tennis umpire stand.

[wonkguy]

I've been on Twitter for a few months now. There is no way I would pay money for it. I'm already on the hook to my cell phone provider for text messages. And I don't need to pretend to be Dunkin Donuts to send fake messages. Why can't I just sign up as Dunkin Donuts Sucks? They need to rethink this.

[MissMisk]

I'm a good investment. Send some Twitter cash to me.

[BluebirdofUnhappiness]

Twitter has got to be the most inane timewaster ever(Look at me, I can has tweet!!!!) The only people who seem excited about it are the marketeers

[Biff Baxter]

Twitter is so last month.

This is the new new thing.

http://smartstartup.typepad.com/my_weblog/2009/04/goodbye-twitter-hello-flutter.html

[mediamarv]

Exactly what I told my landlord: "revenue plans are in the works."

I now live with my parents.

[NevaforLeadership]

fun post

[Freenation]

nice :)

[henrywolff]

Hilarious. They better follow the path of the newspapers and convert to non-profit corporations right now.

[oldwhitewomantoo]

If they charge the consumer, there will be alot less tweets!

[Charity]

the moment twitter or facebook starts to charge for usage is the moment valid competitors will spring up who WON'T charge for customer usage. twitter, facebook, the new york times, huffington post, etc etc etc have to realize that their revenue stream has to come from advertiser dollars.

unless you have a wholly unique online product or are a wholly unique online entity, i can't imagine any visitor or customer to a site paying for usage that would turn a profit. i'm sure there would be SOME who might pay, but it would hardly be enough to justify maintaining a fee due to loss of a huge customer base.

i say this as a facebook user, and while i have an account on twitter, i've yet to participate.

on the other hand, something like google, if they were to charge, would be something i would have to think long and hard about since i use it all day long. but again, there is enough advertising going on within google and yahoo that i think a charge to customers would alienate their base.

the problem is choice. we have too many free choices to be affected in any great way by a site that charges.

[stevieforte]

f*** twitter. these hyper-fads are getting old.

[alex98]

The Twitter revenue plan ? There isn't one ... A year from now something else will come along .

[Shawn Drewry]

To this very day, I'm still in total awe, wondering how "Twitter" is getting that xXx $ gUaPeY $ xXx :-)

LOLLOL!

http://www.ShawnDrewry.com

[ImaSpeakonit]

Twitter is done the moment they stick their hands out!