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January 2, 2009

Does Twitter’s profitability have any impact on your business or organization? I think so.

Last month, Bloomberg reported that Twitter, Inc. would make a small profit in 2009 after search deals were made with Google and Microsoft’s Bing search engine. Revenues from both deals will total about $25M, which should just about cover Twitter’s $20-25M estimated yearly expenses.

Twitter has raised $155M in funding and is valued at over $1B, despite no revenue plan. Evan Williams has shared plans that Twitter will be charging for commercial accounts and will likely introduce advertising into the service.

What does this mean for the Twitterverse?

First we should expect to see commercial accounts becoming a part of the fabric of Twitter. I don’t expect that end users will see a big change, but these accounts will have access to in-depth analytics and traffic data around their brand. Will this start to change the landscape of the fast-changing and increasingly competitive social media monitoring services? We will see…

What remains the same is that major companies and small businesses will continue to profit from Twitter. Success stories like Dell selling over $2M on Twitter and Zappos’ comprehensive use of Twitter for employee and customer engagement are just a few of the profitable anecdotes out there.

The reality is that businesses and institutions will continue to see more opportunities as the leading social media sites continue to grow and prosper. Change is necessary, and Twitter, Facebook and the others will continue to evolve…quickly. The organizations that are embracing social media now are better able to adapt and utilize new features and tools as they become available.

Twitter’s profits are small and modest now – just like the results of most of the efforts of companies using social media today. My suspicion is that as Twitter’s profits grow, so will the profits of companies utilizing Twitter’s full potential.

About the Author

Matthew Ray

Creative Director and Co-Founder of ChatterBlast, Matthew Ray is a fan of comic books, ice cream and sitcoms from the late 1980s.

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