Currently, Twitter is known as a micro blogging site that people use for fun and enjoy typing out 140-character status updates to keep their friends and followers informed about what they have been up to. Now with the current world scenario, companies have started using this micro blogging site to post updates about services, offers and contests for people and in turn make a profit. And what is Twitter getting for all this? Nothing, as it is a free to use service.
Recently, Dell also has been Tweeting and has actually made a profit of $ 3 million, thanks to the followers on Twitter clicking their way through and making purchases on their site. Dell has been using Twitter for the past two years, but saw a significant rise in sales over the last 6 months, as they made more than $1 million in that time span.
So why are we telling you all this, well the reason Twitter is still free, is because they are unable to come up with a business model to show how their site can rake in the moolah. Well according to a Gartner analyst, all they need to do is show the success of companies such as Dell, who have used the web site to their benefit and they should be set.
Twitter is working on new add-on tools and services for businesses too, but we sure hope this doesn’t affect our daily tweeting rituals as nobody would give twitter a second look if you had to pay for using it.