Blog Post

Twitter Considers E-Commerce As A Possible Revenue Stream

Each month, a few additional details about Twitter’s plans to make money trickle out, although so far nothing has come from any of them. The latest possibility: Twitter board member Todd Chaffee tells the NYT that the company could make money from e-commerce. He notes that many people are already using Twitter to get product recommendations and companies are using the service to promote their products so it would follow that people might want to buy items straight from the site.

The connection makes lots of sense, considering that businesses have proven that it is possible to sell products via their Twitter accounts. For instance, Dell announced last week that $3 million of its product sales could be directly attributed to its Twitter account.

But Chaffee’s comments show that the company is not really getting any closer to figuring out how to make money. Over the last year, representatives have thrown out various possibilities but they then seem to either not bring them up again or contradict them. At our own EconSM conference a month ago, for instance, Twitter director of business development Kevin Thau said that the company was looking at a three-pronged revenue stream. He said the company would monetize its search traffic, make money from phone carriers, and also share ad revenue with some content companies. Notably, there was no mention of e-commerce.

In the past, executives have also hinted that they might charge corporate users to use Twitter. But last month Twitter co-founder Biz Stone said Twitter would remain free for both consumers and businesses. He also told Reuters that the company was not considering advertising as a revenue stream, but a day later insisted on the company blog that Twitter was not in fact “philosophically opposed to any and all advertising.” All of this could of course indicate that the company is planning to introduce a wide range of revenue streams — but it also makes the company appear to be rather lost.

5 Responses to “Twitter Considers E-Commerce As A Possible Revenue Stream”

  1. Kieran Hawe

    Plurk, Jaiku, Id.tenica…the list of micro-blogging services with the same functionally is endless. Anyone can replicate the Twitter service…what they cant do is drive the same level of traffic.

  2. ed dunn

    Is Twitter "free model" propiertary? If it is not IP, then they stand to be zero-summed by someone else who can create a cute name and can duplicate the same service.

    Patricia is dead-on – twitter is a utility and as much as people don't want to admit, it also make them a cute commodity.

  3. patricia

    A buy/sell platform (like Craigslist) could probably work with a user based fee or eBay model where Twitter takes part of the sale. It's not impossible. I wouldn't bother with the recommendations/retail tie – everybody's already doing it, it's nebulous, and oversaturated. Lots of social networks are home to users selling unwanted stuff. With all the geeks, small business, indie designers, etc. on Twitter, I could see it very possible users would adopt a marketplace.

    Twitter is a utility play, not an ad play. that is why it is having a hard time monetizing.