Twitter Business Strategies

What is the business logic driving free web services such as Twitter?
With millions already invested in Twitter, and no profit to date, and I don’t know of any existing revenue stream, what is their business logic? Why would venture capital flow toward Twitter, instead of away from it? This question applies to other free web start ups as well. Any insight into the long term strategy or viability of these free web sites is appreciated.
I must admit that this is just a guess. And with that said I’m also guessing that there could be over 1000 reasons that Twitter approaches the market the way it does with great success.
Okay, so Twitter makes no money (yeah right) why invest in it.
During a recent error on Twitters part numerous people lost their accounts including @BodyByChocolate (ME!). Fortunately Twitter quickly realized what had happened and Tweeted their apology along with a clear statement that TweetLater’s auto DM process had nothing to do with the issues we were experiencing.
With TweetLater there is a free and paid version to work with. The paid version is very nice and worth every penny. While I can’t say that Twitter owns TweetLater, is it not possible that there is some type of backend advertising that the founders of Twitter do without us realizing it? Done right, Twitter would stand to make an aweful lot of money.
Or, how about this?
Twitter aligns itself to be a charity which gives back to the community. Do you know how much money charities can make? Then if they have the above tied in too Twitter would be looking very nice while being very free.
I can’t guarantee any of the above are actually true, just good reasons for why they do what they do.
The Body By Chocolate Man
TWITTER: http://twitter.com/BodyByChocolate
WEBSITE:
Twitter Business Strategies


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