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Aug 18 2008

Is Twitter up to implement ‘the business model’?

Sardar Mohkim Khan 

Twitter_Punch

twitterlogo Is Twitter up to implement ‘the business model’?We have got reports that Twitter is finally making a move on towards its business model and we had witnessed it with its launch in Japan when every user’s homepage had an ad at the top right. And that wasn’t it, we saw it this month too when Twitter limited the number of following per user to 2000. Something was up there in the pot cooking and being stirred by the investors and it waited for the right time.

Last week they came out with another blast; that of cutting down Twitters prime service, outbound text messages in every country except for the U.S, Canada and India. What exactly pushes Twitter to all this, the investors who have their cash clogged in the pipes and they have absolutely no way to monetize this service; voila they come up with limiting the facilities (and the amount of them) Twitter provides. Out is the business model and the users can sob over this as much as they want to for nothing comes free in this world.

Ben Kunz comes up with a bit of reasoning the major and the most obvious being that the huge amount of users connected via the Twitter network are barely contacted. The problem? Well its like wasting a lot of resource for connecting those who would never tweet each other; its easy, will your family marry you to a woman whom you never match frequencies with or ever think of talking to? I don’t call it being harsh at not letting users work out at expanding their social network but it’s called making the users make sensible choice. Why would I ever connect to a person who is a die hard fan of volley ball when I hate it?

So what Twitter plans to do? It has various options from charging users for texts and for adding every 1000 extra friends (after the limit), or more conveniently sell ads. Kunz’s mathematics sort of impressed me and he came up pretty impressive profit returns that total to $28.2 million and Twitter like many other media ending up as a proprietary of some giant in the Industry, where the profit returns wont matter much as they eye millions the service has already got connecting. And why wont they? A few million doesn’t matter to these giants (Google, Microsoft), what they look forward to is expanding to the very base of their business; the users and Twitter has them in numbers.

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