For a while now a number of us have wondered….. how will Twitter start making money?
Well, guess what? Twitter has a new revenue stream in place…
As reported today by Steve Monfort on Nasdaq.com
Twitter’s search agreements provide a new revenue stream
Twitter’s search agreements provide a new revenue stream Social media website Twitter announced that, thanks to recently inked deals with search sites Google (NASDAQ: GOOG) and Bing, it will turn a profit for the first time.
Twitter posts, or “Tweets,” will appear on Google and Bing search results as part of the deals. Bing, owned by Microsoft (NASDAQ: MSFT), was the first search engine to sign a deal with Twitter, the third-most-popular social networking site in the country. Google followed shortly thereafter.
While none of the companies involved disclosed the deals’ value when they were signed in October, sources revealed to Bloomberg that the Google agreement will net Twitter $15 million and the Bing deal is worth $10 million. The combined $25 million will push Twitter into profitability for the first time since its founding in 2006.
Twitter’s revenue model was nonexistent until this fall. The company sought to attract as many microbloggers as possible by offering free accounts with unlimited Tweets. The strategy worked, according to comScore (NASDAQ: SCOR): an estimated 58 million people use Twitter every month.
After reading the article by Steve, I was happy to hear that Twitter was not charging the twitter users.
Kudos to Twitter, Google and Bing for reaching an agreement and working together.
The new ways of partnering up and doing business goes against the old traditional ways of doing business. As long as it doesn’t create a monopoly over the rest of us, it only makes sense. I am seeing this happen more and more in today’s world of business. Maybe it’s something that more of us should consider or adopt no matter what size business we have.. what are your thoughts?
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