2009/7/16 Michael Yardley <[email protected]>:
>
> They are just running on Venture Capital.When the money runs out they
> will have to start chraging.You cannot run a business for FREE.People
> should have to pay to Twitter.So much a Tweet. LOL

You really need to do some research before trolling like this.

Twitter have a business plan, we're just not worthy enough to know all
the details. What we know so far is that they're planning to launch a
premium account type with a bunch of tools to aid brand and engagement
tracking. If Twitter can maintain their popularity big business will
pay a small fortune to be able to measure the effectiveness of the way
they're using their accounts.

In fact depending on how it's priced it's possible they won't need
many companies to pay for a premium account before they start making
an operating profit.

They, as well as most of the rest of the world, know that if they
started charging for all accounts they would quickly die and be
replaced by someone else trying to do it for free.

You're correct to say that free as a business model cannot work, but
there are thousands of examples out there of companies running a free
service that's supported by paid options. Google is the prime example
here, but it works for small companies too - 37signals is a huge
proponent of offering a free option alongside paid accounts and it's
worked very well for them.

Having said all that I would be very wary about building a company
solely based upon Twitter. While I don't think they're going anywhere
there's nothing stopping them implementing anything that you or I
could build and they'd quickly eat away at any market share we'd built
up. We've already seen a few examples of this over at Facebook.

I'm not saying I'd expect them to do something like that, but it's
possible and worth bearing in mind. A more likely scenario is that
they'd buy a company providing a particular service and integrate it
fully into the main product. If you're a competitor of that company
then you'd experience the same effects as if Twitter had built it
themselves.

Diversity is the key to survival when the environment you're operating
in changes as fast as the internet.

Anyway, those are my thoughts, do with them what you will.

-Stuart

-- 
http://stut.net/projects/twitter/

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