Comments on: In Twitter’s Scoble Problem, a Business Model http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/ Trusted Insights and Conversations on the Next Wave of Technology Thu, 26 Nov 2009 03:26:30 +0000 http://wordpress.com/ hourly 1 By: Kyle http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-966355 Kyle Tue, 11 Aug 2009 21:28:28 +0000 http://gigaom.wordpress.com/?p=13565#comment-966355 <p>This is the most impractical solution I've ever read. By charging for the number of followers you will A) discourage the exponential growth twitter currently has B) drive off the highest followed users C) give a new service a big window of opportunity to take market share. Some people are arguing that driving off highly trafficked profiles won't effect the site but these users serve as the publicity engine for the entire operation. Most of the highest followed people use the site more frequently than anybody else, and they promote their profiles/twitter in general, furthermore when people follow celebrities it gives the illusion of a personal window into the lives of stars thereby drawing even more users to twitter. If you lose the power users twitter loses its publicity and then an upstart can take over and dominate the market with an actual business plan a la Facebook vs. MySpace.</p> <p>The solution sadly seems to be an ad based system as twitter is not a service that is essential. If you directly charge users they will leave the site and it will increase traffic to facebook, which has already tweaked its interface to be more twitter esque, and other social networking sites. In the current economy people are looking to trim the fat from their budgets and few are likely to pay for a service they can get in some form elsewhere, especially a service which is relatively inconsequential.</p> This is the most impractical solution I’ve ever read. By charging for the number of followers you will A) discourage the exponential growth twitter currently has B) drive off the highest followed users C) give a new service a big window of opportunity to take market share. Some people are arguing that driving off highly trafficked profiles won’t effect the site but these users serve as the publicity engine for the entire operation. Most of the highest followed people use the site more frequently than anybody else, and they promote their profiles/twitter in general, furthermore when people follow celebrities it gives the illusion of a personal window into the lives of stars thereby drawing even more users to twitter. If you lose the power users twitter loses its publicity and then an upstart can take over and dominate the market with an actual business plan a la Facebook vs. MySpace.

The solution sadly seems to be an ad based system as twitter is not a service that is essential. If you directly charge users they will leave the site and it will increase traffic to facebook, which has already tweaked its interface to be more twitter esque, and other social networking sites. In the current economy people are looking to trim the fat from their budgets and few are likely to pay for a service they can get in some form elsewhere, especially a service which is relatively inconsequential.

]]> By: On Twitter & Prediction Markets « zerobeta http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-932314 On Twitter & Prediction Markets « zerobeta Thu, 19 Mar 2009 12:55:14 +0000 http://gigaom.wordpress.com/?p=13565#comment-932314 <p>[...] the inefficient use of database space (and essentially become profitable): Today, I read a post on Twitter (via Abnormal Returns), the microblogging service that Fred Wilson, someone who really [...]</p> [...] the inefficient use of database space (and essentially become profitable): Today, I read a post on Twitter (via Abnormal Returns), the microblogging service that Fred Wilson, someone who really [...]

]]> By: A Brief History of Twitter | Telecom Update http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-924269 A Brief History of Twitter | Telecom Update Mon, 02 Feb 2009 18:11:33 +0000 http://gigaom.wordpress.com/?p=13565#comment-924269 <p>[...] On Twitter, Followers Aren’t Really Friends. 2. In Twitter’s Scoble Problem, a Business Model. 3. Why Twitter shouldn’t sell. 4. With Summize, Twitter to buy a [...]</p> [...] On Twitter, Followers Aren’t Really Friends. 2. In Twitter’s Scoble Problem, a Business Model. 3. Why Twitter shouldn’t sell. 4. With Summize, Twitter to buy a [...]

]]> By: Try Twitter you chicken « Read all over http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-924206 Try Twitter you chicken « Read all over Mon, 02 Feb 2009 11:33:45 +0000 http://gigaom.wordpress.com/?p=13565#comment-924206 <p>[...] In Twitter’s Scoble problem, a business model (GigaOm) [...]</p> [...] In Twitter’s Scoble problem, a business model (GigaOm) [...]

]]> By: A Brief History of Twitter http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-924176 A Brief History of Twitter Mon, 02 Feb 2009 04:10:42 +0000 http://gigaom.wordpress.com/?p=13565#comment-924176 <p>[...] On Twitter, Followers Aren’t Really Friends. 2. In Twitter’s Scoble Problem, a Business Model. 3. Why Twitter shouldn’t sell. 4. With Summize, Twitter to buy a clue [...]</p> [...] On Twitter, Followers Aren’t Really Friends. 2. In Twitter’s Scoble Problem, a Business Model. 3. Why Twitter shouldn’t sell. 4. With Summize, Twitter to buy a clue [...]

]]> By: Technology news - Techvibes Blog http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-921805 Technology news - Techvibes Blog Thu, 15 Jan 2009 02:01:30 +0000 http://gigaom.wordpress.com/?p=13565#comment-921805 <p>[...] bigger question is why microblogging companies are getting any investment at all. If Twitter can’t find revenues with the vast majority of market share, why would an open-source version make money? Identi.ca [...]</p> [...] bigger question is why microblogging companies are getting any investment at all. If Twitter can’t find revenues with the vast majority of market share, why would an open-source version make money? Identi.ca [...]

]]> By: Identi.ca Gets Funding to Make Open-source Twitter Variant http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-921796 Identi.ca Gets Funding to Make Open-source Twitter Variant Thu, 15 Jan 2009 01:00:51 +0000 http://gigaom.wordpress.com/?p=13565#comment-921796 <p>[...] bigger question is why microblogging companies are getting any investment at all. If Twitter can’t find revenues with the vast majority of market share, why would an open-source version make money? Identi.ca [...]</p> [...] bigger question is why microblogging companies are getting any investment at all. If Twitter can’t find revenues with the vast majority of market share, why would an open-source version make money? Identi.ca [...]

]]> By: More potential business models for Twitter at Klintron’s Brain http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-918679 More potential business models for Twitter at Klintron’s Brain Fri, 19 Dec 2008 21:30:03 +0000 http://gigaom.wordpress.com/?p=13565#comment-918679 <p>[...] Charge for having more than 1,000 followers [...]</p> [...] Charge for having more than 1,000 followers [...]

]]> By: Twitter: Show Me Added Value if You Want Me to Pay | b-roll.net TODAY http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-918145 Twitter: Show Me Added Value if You Want Me to Pay | b-roll.net TODAY Tue, 16 Dec 2008 11:27:49 +0000 http://gigaom.wordpress.com/?p=13565#comment-918145 <p>[...] Calacanis holds sway with the folks at Twitter. Recently there has been a chorus of people from Om Malik to Pat Phelan calling for some type of metered/pay [...]</p> [...] Calacanis holds sway with the folks at Twitter. Recently there has been a chorus of people from Om Malik to Pat Phelan calling for some type of metered/pay [...]

]]> By: admin http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-902576 admin Thu, 02 Oct 2008 06:15:25 +0000 http://gigaom.wordpress.com/?p=13565#comment-902576 <p>I just got into twitter, it seemed to me to be a kid site, I was actually astounded to know of its huge success in terns of users. To have users and not to monetize seems such a criminal waste.</p> I just got into twitter, it seemed to me to be a kid site, I was actually astounded to know of its huge success in terns of users. To have users and not to monetize seems such a criminal waste.

]]> By: Hulu is Bad for the Net but People Will Pay for Twitter - GigaOM http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-897425 Hulu is Bad for the Net but People Will Pay for Twitter - GigaOM Wed, 03 Sep 2008 13:47:27 +0000 http://gigaom.wordpress.com/?p=13565#comment-897425 <p>[...] The report makes for good reading for those thinking about the value of broadband connections (from a revenue perspective a text message generates $1,000 per MB for a carrier while a wireless voice call generates $1 per MB and broadband Internet generates 1 cent per MB) and next generation services. But if people will pay for connectivity, why can’t Twitter find a business model? [...]</p> [...] The report makes for good reading for those thinking about the value of broadband connections (from a revenue perspective a text message generates $1,000 per MB for a carrier while a wireless voice call generates $1 per MB and broadband Internet generates 1 cent per MB) and next generation services. But if people will pay for connectivity, why can’t Twitter find a business model? [...]

]]> By: Mobile Messaging 2.0 » Twitter hands off the SMS baton to others: a hosted discussion on mobile messaging, devices, and user practices and trends http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-895597 Mobile Messaging 2.0 » Twitter hands off the SMS baton to others: a hosted discussion on mobile messaging, devices, and user practices and trends Mon, 25 Aug 2008 14:17:31 +0000 http://gigaom.wordpress.com/?p=13565#comment-895597 <p>[...] is signalling that it expects growth of the user base to be the basis for its value, rather than the potential revenue that may be extracted. Share and Enjoy: These icons link to social bookmarking sites where [...]</p> [...] is signalling that it expects growth of the user base to be the basis for its value, rather than the potential revenue that may be extracted. Share and Enjoy: These icons link to social bookmarking sites where [...]

]]> By: Chris Edwards http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-893389 Chris Edwards Tue, 12 Aug 2008 06:46:04 +0000 http://gigaom.wordpress.com/?p=13565#comment-893389 <p>Twitter doesn't have critical mass yet to pull a "paid" service and profit. Some other start-up will just come by and do it right and take the $.</p> Twitter doesn’t have critical mass yet to pull a “paid” service and profit. Some other start-up will just come by and do it right and take the $.

]]> By: Twitter Going Fremium? Limiting Followers To 2000? - GigaOM http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-893360 Twitter Going Fremium? Limiting Followers To 2000? - GigaOM Tue, 12 Aug 2008 05:03:31 +0000 http://gigaom.wordpress.com/?p=13565#comment-893360 <p>[...] In my blog post from May 2008 about their infrastructure problems, and how they can deal with it, I had suggested that they should limit the followers, charge for additional followers and messages. $10 a month for 1,000 subscribers. 25,000 subscribers means someone like Scoble should be paying them around $250 a month. Let’s take it a step further. Twitter should limit people to 500 free messages a month. Any more should come in a bucket of, say, 1,000 messages for $10… This would also fit the Freemium business model that Twitter investor Fred Wilson so loves. [...]</p> [...] In my blog post from May 2008 about their infrastructure problems, and how they can deal with it, I had suggested that they should limit the followers, charge for additional followers and messages. $10 a month for 1,000 subscribers. 25,000 subscribers means someone like Scoble should be paying them around $250 a month. Let’s take it a step further. Twitter should limit people to 500 free messages a month. Any more should come in a bucket of, say, 1,000 messages for $10… This would also fit the Freemium business model that Twitter investor Fred Wilson so loves. [...]

]]> By: Peldi Guilizzoni http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-893106 Peldi Guilizzoni Mon, 11 Aug 2008 09:28:47 +0000 http://gigaom.wordpress.com/?p=13565#comment-893106 <p>Not sure it could account for a full-on business model, but I for one am ready to pay them for using Twitter for direct advertising: http://www.balsamiq.com/blog/?p=217 for details</p> Not sure it could account for a full-on business model, but I for one am ready to pay them for using Twitter for direct advertising: http://www.balsamiq.com/blog/?p=217 for details

]]> By: twitter’s ‘consummization’ bad for app developers? : One More Thing http://gigaom.com/2008/05/25/in-twitters-scoble-problem-a-business-model/#comment-888745 twitter’s ‘consummization’ bad for app developers? : One More Thing Wed, 16 Jul 2008 11:28:34 +0000 http://gigaom.wordpress.com/?p=13565#comment-888745 <p>[...] models. Add in Twitter’s fledgling API (Twitter as a development platform?) and its abundant downtime and scaling problems (Twitter as a ransom-extractor?) and we have a whole load of ideas on how Twitter can make [...]</p> [...] models. Add in Twitter’s fledgling API (Twitter as a development platform?) and its abundant downtime and scaling problems (Twitter as a ransom-extractor?) and we have a whole load of ideas on how Twitter can make [...]

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