Twitter to roll out commercial accounts this year
August 21, 2009 Leave a comment
Well, here we go! People have been wondering how on Earth the folks at Twitter are going to make money. You can’t be a well-financed start-up forever. Eventually, you need to prove your worth.
People see value in Twitter, but the problem is how do you charge for it without driving people away? All of those opinions, recommendations, jokes, news bits and even just idle babble are what businesses want access to.
However, today’s consumer is wicked smart.
We Google. We don’t really trust traditional ads. Even though we still respond to them, it’s not in the way we used to because businesses can’t control the message.
With the Internet, people can control the message. That’s probably why other sites like Yelp.com are so darn popular too.
I’d say the concept is right back to basics. It’s word of mouth reincarnated. Now it’s not just neighbors talking to each other over the picket fence, men sharing tips in a barber shop or women conversing at the grocer. This is worldwide and 24/7. People are really scrambling to figure it out.
Let’s see how Twitter does with this. I hope it works for them!
August 20, 2009 | Kim-Mai Cutler and Matt Marshall
Yes, Twitter will start earning some income this year.
Co-founder Biz Stone said the company is in the first phase of rolling out commercial accounts that will entice business users to pay for premium services like detailed analytics. After that, the company might move into building business-oriented application programming interfaces (APIs), creating a “commercial layer” over the social network. The commercial APIs would be out “later this year,” he said.
“Twitter will still be free for everybody and we’ll still tell them to go crazy with it,” said Stone in an interview. “But we’ve identified a selection of things that businesses say are helping to make them more profit.”
The company has already moved in this direction by releasing a guide for professional users, detailing how companies can use it to find customers, pass on deals and perform market research. It is also going to offer “certified accounts,” for businesses, for example letting JetBlue certify that its Twitter account is owned by JetBlue and not by someone pretending to be JetBlue (until now, Twitter has done this only for a limited number of people, including celebrities). Stone didn’t give a specific date for when the company would launch the newer commercial offerings.
Also, it might be hard to tease out who is using the service professionally and who is using it for personal reasons, and then charge them for it. So the idea is to build a set of features that people are willing to pay for.
“We want to build statistics or analytics that let users know — ‘How am I doing on Twitter?’” he said.
Building premium commercial offerings would put Twitter in closer competition with third-party developers like CoTweet, which helps brands manage customer relations on the microblogging network. Stone, however, was careful to stress that the company doesn’t want to disturb the world of third-party developers building around the network.
“We’ll continue to support the ecosystem with a whole new set of commercial APIs,” he said.
Guessing Twitter’s business model has become one of Silicon Valley’s favorite parlor games. The start-up has raised $55 million so far and zoomed past 44.5 million unique users in June, according to comScore. But it hasn’t revealed exactly how it plans to live up to that lofty valuation. Instead, Stone has said in the past that the company is learning and evolving with its user base.
“We’re at a point where even though we’re only two years old, acquisitions are definitely possible,” Stone said.
Twitter’s already done one before. It bought Summize last year to build out Twitter’s search capabilities, a move that seems to have turned out well.
We interviewed Stone on the day Twitter unveiled its location API.
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