Sunday, January 30, 2011

The Twitter Paradox- How will it make money in 2011?

The popularity of Twitter and its effects on the world are undoubtedly influential, as we've seen with the revolutions in Tunisia and Egypt. It's a simple way for people to connect to information from people that they want to hear without having to wade through the mire that is the internet to get it. Behind all of it's influence however, is a company that is heavily reliant on investments. The company made $45million in revenue in 2010, and $25million in distribution deals from Google and Microsoft.

Now as it moves into 2011, Twitter will need to find ways to expand profit along with its enormous growth.

As Forrester Research analyst Augie Ray said, "2010 was the year Twitter became a phenomenon, 2011 will be the year that they have to prove they are a business."

2 comments:

  1. In order to increase their revenue for the 2011-2012 fiscal year, I believe that Twitter may have to take a page out of Facebook's and Myspace's playbook. Twitter may have to broaden their website's infrastructure, and sell advertisements through Twitter. This may help to make Twitter into a sustainable and profitable business.

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  2. I would like to see your future posts go into more detailed analysis and to see your personal thoughts on the topic and how you think this is going to effect the industry or how it is relevant to the industry.

    Hakim, very good insightful and intellectual comment!

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