How To Free The Bird

http://www.digitaltrends.com/

Now that we are a couple weeks past the Twitter IPO, questions about whether or not Twitter can be profitable have been raised. After learning the business canvas model in comm 101, it quickly became apparent to me how important it is to have a clear value proposition and revenue stream. Twitter needs a clear value proposition to its investors, and actual revenue stream if it is to be a good investment. The IPO document never specified how Twitter intends to make money. Revenue streams are a fundamental part of any business model because without profits (which requires revenue), a company will go out of business. Twitter has built up an asset though: its large customer base. The obvious revenue stream for Twitter is selling advertisements. However, Twitter also has the ability to sell big data to marketers for large amounts of money. If Twitter were to partner with companies, and use keywords from tweets, it would have a clear value proposition to marketing agencies. As much as the general public dislikes their information being sold, they are not usually willing to do anything about it. Therefore, if Twitter can break down its data, and package it nicely, it can sell its business plan to investors.

Leave a Reply

Your email address will not be published. Required fields are marked *