Twitteriffic! Why I am Bullish on Twitter (and Why it Shouldn’t Focus on Making Money)

Today, BusinessWeek.com and the New York Times published features about Twitter. Not to be outdone, Kara Swisher published an interview with Twitter co-founders Biz Stone and Evan Williams on AllThingsD. All of these stories show how Twitter is becoming a platform that companies are building their businesses on.

This is the main reason I am so bullish on Twitter’s future. Silicon Valley home runs are all about platform plays. Whenever a company helps other companies make money, that’s when you have a potentially large winner on your hands. Think Microsoft (software developers), Amazon (online merchants) and Google (small to medium size publishers and other marketers).

As Twitter develops its platform, the next step for the company is to find standard monetization formats, and help automate the commercialization of the service, much like Google did with AdWords and AdSense and Amazon has done with its merchants program.

But unlike many folks who have been pressing Twitter to announce a business model, I don’t believe there’s an urgent need for Twitter to focus on making money. As a two-year-old company, Twitter SHOULD concentrate on product development and growth and core innovation. It’s too early to be maximizing for profit. The platform is still in its early stages of development and there are so many more users to sign up and the company has raised a war chest of capital to finance that growth. This bird just got its wings and is learning to fly.

Facebook, on the other hand, which is five years old, is in the typical stage of a startup where it should be shifting from growth to profit. Even so, it makes sense for Twitter to start thinking about business models since it takes a year or two to develop and roll out a monetization program. And that’s exactly what the company is doing now.

I will have more to say about the recent reports about Google and Twitter but first I wanted to get this thought off my chest. So keep doing what you’re doing, Twitter. It’s worked out pretty well so far. And I think it should get even better.

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4 Responses to “Twitteriffic! Why I am Bullish on Twitter (and Why it Shouldn’t Focus on Making Money)”

  1. yofrez Says:

    I’m also bullish on twitter, but growing their user base does not equal a great business. This is especially true if you can’t charge for your services. Do you have any ideas on how the can monetize their business?

  2. John Furrier Says:

    Excellent – I concur with you . Been saying that for months. Can I repost this on The SiliconANGLE.com under your name with a link to your site?

  3. Amit | Web Design Says:

    Hi
    I’m a newbie in the Twitter thingi, but I have find that its really cool tool
    if you want to promote yourself (or any other service you may like).
    Its not the most intuitive and easy to understand.

    But thanks G.d for ppl like you who helps ppl like me at their first steps into the Twitter system.

    Thank you for the post

    Amit

  4. Spencer Ante Says:

    John, go for it!

    THere are lot of ways Twitter could make money. One obvious one is to create PRO accounts that validate the existence of a person.

    Another is to leverage all of the amazing data they have and sell analytics service to companies giving them reports on what people are saying about their products.

    The biggest idea is to monetize its search results, a la Google.

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