Twitter Business model.

This guy says that Twitter is getting spikes up to 11,000 page requests per second.  
http://www.loudthinking.com/arc/000608.html

That works out to a peak load of 950 million pageviews/day   That is as much traffic as facebook did per day in Jan of this year.  In Twitter’s case probably 99.9% of those pageviews are RSS, automated requests and status polling of some kind.

This company reminds me a lot of Youtube,  lots of bandwidth and no way of monitizing it.   Twitter is going to have a tough time covering 6 figure bandwidth costs if those numbers are even remotely correct.    But at least for twitter they have traffic,  and traffic gives you options, such as acquisition! 

38 Responses to “Twitter Business model.”

  1. Mayo Says:

    blah.. free press…

  2. Mayo Says:

    it is like one big IRC chat session… with one question.. and bunch of morons LOL

  3. threz Says:

    I doubt its RSS using up the bandwidth, most feed readers only poll every hour.

    Its most likely their web page widgets/badges etc.. in that respect its very much like Youtube was when 99.9% of their traffic was caused by embedded videos in other peoples pages.

  4. Jonathan Frate Says:

    you’re forgetting the other bandwidth cost — sms terminations

  5. Marc Says:

    Besides having a totally gay name, I chock this site up as elitest, web 2.0, VC jack-off material which no one in the real world gives a damn about. That last part means this traffic can never be significantly monetized. And happily will never make money. I wouldn’t want to be the investor holding the twitter bag 2 years from now when the novelty wears off and they realize they are subsidising a few nerds who blog the minutia of boring lives rather than live them.

  6. mathew Says:

    all twitter needs to do is just play it cool for a while longer – get a little more established, and then ‘soft-launch’ a premium sms charge – bingo buckets of cash :)

  7. V7N Search Marketing News » Blog Archive » Daily Search Blog Roundup, April 13, 2007 Says:

    [...] Twitter receiving 950 million pageviews/day? [...]

  8. Ajay Says:

    According to this podcast (twitter talk starts at 15:20 minutes, SMS talk from 18:25 to 22:10) put out by their webhost, they probably make plenty enough off of the SMS traffic. I did not know about this cellular carrier revenue sharing till I heard this podcast. Also, there was an earlier podcast (15:55-30:20 is the relevant bit) by their webhost, when the CTO first explained the service to the CEO and some other techies and they ripped the service, although they’re probably singing a different tune by now. I will note that their bandwidth is probably a fraction of that used by video sites so I’m not sure why you’re worried about that.

  9. mike Says:

    Twitter makes no money right now. They don’t make ANY monoey off SMS. It actually costs them money to send SMS messages. Around $40K a month on SMS alone.

  10. Ajay Says:

    Any source for this info, mike? I linked to my sources. Also, as mentioned in the podcast, you have to hit a certain threshold before revenue sharing begins. Perhaps they haven’t hit it yet but will someday soon? Although, I have to side with Marc that this is just one of those geek fads that will soon die out.

  11. Stephen Sclafani Says:

    mike is correct. In the U.S. no one but the big players (American Idol big) make money through revenue sharing. According to Evan Williams (the founder of Twitter) they are paying SMS fees in the five figure range per month.

    http://www.calacanis.com/2007/04/02/calacaniscast-21-beta/

  12. Brian Breslin Says:

    there is money to be made, somewhere. but its most likely going to be commercial twitter pages like the one they just did for some fox tv show. like director commentaries every x minutes while you watch.

    and yes they are losing like 50k a month on sms charges.

  13. Dan Says:

    Basically Twitter is offsetting it’s mobile costs against advertsing. This is bizarre. It could use a long-number or premium system, and turn this into profit. – I just don’t get the gaping hole in the business model

    Dan

    http://www.freebiesms.co.uk

  14. How to Drive Traffic from "Twitter"? Says:

    [...] world talking 54. VentureBeat » Roundup: The Obama Valley, Twitter’s cash, Zonbu … 55. Twitter Business model. « The Paradigm Shift 56. Hightouch: Twitter driving blog traffic 57. Twitter – Blog Toplist 58. Twitter vs Jaiku traffic [...]

  15. S.o.G. Says:

    …subsidising a few nerds who blog the minutia of boring lives rather than live them…

    that’s what I thought when I first heard of twitter. Then we added tweets to our deployment system, as a dirt simple way of asynchronously notifying about a deployment (ie, without adding interuptions to the deployee or the interested party(s) waiting on a deployment)

    then we realized twitter was a good way for developers to asynchronously indicate what they were working on and/or blocked by

    we are nerds. we wait for the grid/mesh to be in place, so we have to care even less about financiers and other non-nerd subhumans.

  16. jansegers Says:

    In his blogarticle “Twitter at the tipping point ” (19 Apr 08), ICT journalist Rory Cellan-Jones says he doesn’t think twitter can introduce a real business model. I strongly disagree.

    link: http://www.bbc.co.uk/blogs/technology/2008/04/twitter_at_the_tipping_point.html

    I’ve formulated my thoughts on this subjection over there.

  17. John Estradi Says:

    Its really very hard to make somebuck online. But with patience and more efforts i can start a blog earn my 1st dollar

  18. barry gorbes Says:

    Good overall site enjoyed reading will def bookmark.

  19. devlet hastaneleri Says:

    Twitter is going to have a tough time covering 6 figure bandwidth costs if those numbers are even remotely correct. But at least for twitter they have traffic, and traffic gives you options, such as acquisition!

  20. yer kaplamasi Says:

    Of Fish internationally throughout the Metaverse. 3d webinars, 3d products , 3d events, virtual marketing and branding are some of the things that we specialise at within SecondLife. If this proposal has invoked a curio

  21. kimya Says:

    But at least for twitter they have traffic, and traffic gives you options, such as acquisition!

  22. banka rehberi Says:

    But at least for twitter they have traffic, and traffic gives you options, such as acquisition!

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  24. aluminyum Says:

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  25. rehau Says:

    For monetizing social networks or any large site with high pageview to unique user ratio you can dramatically

  26. dunya rehberi Says:

    bandwidth costs if those numbers are even remotely correct. But at least for twitter they have traffic, and traffic gives you options, such as acquisition!

  27. sorgula sorgulama Says:

    Once yahoo and microsoft come out with something google will effectively control the advertising ecosystem.

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