http://www.time.com/time/business/article/0,8599,1919994,00.html/

If anyone I followed started tweeting adverts I’d quickly ‘un-follow’ (incidentally, isn’t it great how we have to invent new words for this new world?)

Really interesting post, off-late I’ve been reading such posts. I also read a survey mentioning “around 50% of twits are garbage & has no use”….

But, I’m too sure that Twitter people come forward with twitting idea… for their revenue generation.

Regards
Navrang
http://navrangblog.blogspot.com

- Advertising on the SMS alert would be or in the twitter stream would either reduce the space available for the tweet or would require a second SMS or tweet. It would require high click through rates to be regarded as effective and these are notoriously difficult to attain / maintain.

- I don’t see what e-commerce model Twitter offers that is not already provided by other means. It looks like they’ve missed the boat on this, at least for now.

- Data mining raises all sorts of privacy issues. To the extent that regulation would allow this, I can see it being highly valued

- Fremium is counter-intuitive. Setting a threshold for the number of free tweets will just throttle usage. While this might be a useful cost constraining measure I don’t see it as a big revenue generator. For corporates, why bother customising your twitter page when your home page is just one click away?

- SMS revenue share would require Twitter to boss the operators into some sort of deal & I’m not sure it has the clout to do so. Operators are getting all the revenue at the moment, why would they want to share it?

- Revenue share for applications has potential but requires a change from the current open philosophy. However, I believe this would be achievable.

I am very curious, that the hacked financials show gross margin and net earnings that exce gross revenue in ’09. Also that Twitter’s first full year of earnings, 2010, shows a total of $140 M. Hmm 140, does that ring a bell? So might this be a hoax? Has anyone checked into this?

Anyway, Twitter can easily become profitable with Ads, and SMS revenue sharing.

Reading about the article and with some of my thoughts I bet that the SMS Revenue share could be the right scenario, followed by the advertising schema. Taking in account the quota of each posting system (Desktop app vs. Mobile app), the SMS Revenue is most likely to be true in the future, leaving the Adv for the Desktop/Web experience as a plus.

That was my idea for the most likely business model in the first place, but an idea caught my mind remembering the Celltick platform which is used by MNOs to “sell” advertising which is displayed in the customers’ ME from an applet in the SIM via OTA. Having a huge user base, It could very simple to them to generate revenue from that kind of scenario.

So, In my opinion, both scenarios are quite possible, being the SMS Revenue sharing more likely for being more “user friendly”, lets say.

Some thoughts:

Advertising – the idea of follow-up tweets behind yours was past around. Advertisers could “bid” for that space. But the review of Users activity is unexpectedly LOW – < 40% retention {after a month}

Monetize Data Mining – hold off on anything that sells user data, GOOGLE.

Freenium – OEM the service, an application Corporations can set procedures for proper use.

Valuation – Facebook offered $500 Million? Please tell me it was all paper, cause if it was cash……

Twitter's biggest prize is having Fortune 100 / 500 companines finally come up with a plan to make effort at capturing a way to better Service Clients. Enterprise Customers is the Target. When Salesforce.com crossed the barrier and customized their "On Line" solution, Major firms signed on.