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Twitter Counting on Tools, Not Ads, For Revenue



Some exciting news in the world of Twitter. According to Reuters, Twitter will be rolling out revenue-generating features by the year’s end. I know what you’re thinking: “Great, here come the ads.” Well you are wrong, my friend. Twitter believes they can stay ad-free by developing various add-on tools and services for the businesses and professional users of Twitter.

“There are a few reasons why we’re not pursuing advertising — one is it’s just not quite as interesting to us,” Twitter co-founder Biz Stone told the Reuters. “There are no people at Twitter who know anything about advertising or work in advertising. So we don’t have anyone there to make or take those calls.” How comforting.

Stone continued to reassure us all by saying that Twitter would remain free for consumer and businesses. Twitter plans on releasing new features to enhance Twitter’s user-experience, such as lightweight analytics and directories.

In addition to a revenue generation feature, Twitter has a second ambitious goal to achieve by the end of 2009: doubling their staff. Twitter now has more than 40 employees and plans to double its staff by the end of the year.

Reports indicated that Twitter has raised $35 million in financing this year alone, and according to Stone, Twitter isn’t under any pressure to institute a revenue model by the end of the year. We’ll see about that.

  • http://www.alphacommercial.co.uk Mark Harrison

    Wouldn’t it be great if this turns out to be fact. I’m not normally a doubting Thomas but advertising revenue is the bedrock of social networking and I will be one pretty surprised person if Twitter can make their model work financially, without ad revenue. Time will tell I guess…

    Mark Harrison’s last blog post..Choosing a Wirral contract cleaning company

  • http://www.facebook.com/people/Jaan-Kanellis/510446149 Jaan Kanellis

    Interesting considering what Andy just posted about the declining online ad revenue chart. They are going to try and make money from their already HUGE (and growing) user base instead of struggling to find advertisers that want to foot the bill.

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  • http://www.evolutionezine.com/ cyndi

    I love twitter and all they are doing to keep us connected. I am very new to social media and have found twitter really power and fun. So pleased to learn that they plan to keep in free and to get even more powerful – thanks for the info

  • http://www.ehits.biz/ Thomas

    I hope they don't allow advertising. Just look at facebook. The quality of ads there is awful and there are so many trashy links.

  • http://www.simplycast.com/ Michael

    I think that is a smart way to go (at least try it) I know a lot of people who would stop using twitter if it started the whole ad thing.

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