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Dell's success may point to ways for Twitter to make money itself

Twitter is one of the fastest growing of the social networking sites online. The company offers a micro blogging service where users can post messages with a specific character limit. So far, Twitter isn’t generating any real profit, but the company says that at some point it will look to monetize its enormous traffic.

Twitter may not be raking in profits itself, but the social networking site is helping some companies to make money. One of the most successful companies using Twitter to promote sales is Dell. Dell has made millions of dollars in sales directly from Twitter. So far, Dell reports that it has made $3 million from Twitter followers who have clicked through to the Dell site to buy from Twitter posts.

Dell reports that it knows that Twitter is responsible for the sales because of proprietary software that it uses to track the sales. In the past six months alone Dell has cleared a cool $1 million from Twitter. That is a mere drop in the bucket for Dell, one of the world's largest computer companies. Dell boasted $12.3 billion in revenue in Q1 2009 alone.

Still, the Twitter marketing effort requires no real work for Dell and generates revenue that it may not have had otherwise.

Lionel Menchaca, chief blogger for Dell said, "We're going to watch it over time to make sure it's tracking at the right level. It is trending upward and that's what we're going to be looking at overall."

Dell's success has illustrated that companies can use Twitter to make money. Some believe that Dell's success may even point to a method that Twitter can use to make profits itself. Twitter could offer coupon hosting services and other business services.

Analyst Allen Weiner told Reuters, "Certainly one of the ways Twitter can begin to think of itself as a money-making operation is to facilitate a lot of these things, build it as part of the infrastructure. So if you're a company, you can pay Twitter a certain amount of money and they can directly distribute coupons on your behalf, or clear transactions."

Twitter's Jenna Sampson said, "For now, monetization of this type of activity remains unknown. However, as the network grows, the company will be committing more resources toward profitability."

Twitter is continuing its rapid growth; the company grew 131% in February 2009 alone.



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Ok...
By acase on 6/12/2009 9:28:55 AM , Rating: 2
quote:
Still, the Twitter marketing effort requires no real work for Dell and generates revenue that it may not have had otherwise.


Alright, I've never been to the website and I guess maybe I don't know how it works. But I thought the basis was you could "subscribe" to people or companies in this case, and then whenever the company had an update it would let you know about it. If this is how it works I would think these people that were "subscribing" to Dell would be buying their stuff and following their sales anyways.




RE: Ok...
By Aloonatic on 6/12/2009 10:39:08 AM , Rating: 5
You make Twitter sound like an RSS feed, but less useful?


RE: Ok...
By bedford10 on 6/12/09, Rating: -1
RE: Ok...
By Cypherdude1 on 6/13/2009 2:16:23 AM , Rating: 3
quote:
Alright, I've never been to the website and I guess maybe I don't know how it works. But I thought the basis was you could "subscribe" to people or companies in this case


Or it could be that people are getting spam from Twitter. Subscribe to twitter by giving them your email and cellphone number and get yet another form of spam. Isn't that great.

When I first subscribed to T-Mobile, I went through a lot of trouble trying to stop spam. Once they get your cellphone number, it's very difficult to remove it. Every spam costs you 20¢ and I was getting Bulletin Board stock market scams, porn, etc... Even after I used my T-Mobile website personal settings, it still didn't work. T-Mobile was only able to stop it last year by updating their system.

Since I don't use text messaging, I simply used my personal website settings to completely shut them down. If you use text messaging, think twice before you text any company. That includes radio stations, TV stations, etc... Otherwise, you may find yourself on their spam list.


what happens...
By HighWing on 6/12/2009 1:24:50 PM , Rating: 2
quote:
For now, monetization of this type of activity remains unknown.


That statement basically means that twitter is not making money, and has no idea how to do so.... So what happens when they run out of capital and still haven't figured out how to "make" money???

I've been wondering this for some time now.




RE: what happens...
By grant2 on 6/12/2009 1:48:57 PM , Rating: 2
Twitter founder was on Colbert Report a while ago.

He explicitely said they do not know how they will make money, and at this point they're only interested in making the site bigger.


RE: what happens...
By amanojaku on 6/12/2009 2:34:59 PM , Rating: 3
I think it's amazing that a guy who put up a site that does so little is glorified by so many people. It's the equivalent of a global public toilet stall where every weirdo posts something dumb or uninteresting on the wall.


RE: what happens...
By erple2 on 6/14/2009 9:20:55 AM , Rating: 2
Welcome to blogging, and to a surprising extent, YouTube.


Twitter is $@##
By ali123 on 6/16/2009 5:00:57 AM , Rating: 2
It really is




Twitter...
By FaceMaster on 6/12/09, Rating: -1
RE: Twitter...
By klstay on 6/12/2009 10:09:22 AM , Rating: 2
Twitter Twitter Twit
It is the sound of money
How much will you make?


RE: Twitter...
By FaceMaster on 6/12/2009 1:16:41 PM , Rating: 2
Your comment is SOOOOO stupid and random.


RE: Twitter...
By ainarm on 6/12/2009 2:50:23 PM , Rating: 2
No not random or stupid. Good hiku. Hope I spelled that right.


RE: Twitter...
By FaceMaster on 6/12/2009 5:53:49 PM , Rating: 2
Don't worry, hopefully everybody's realised by now that my account is ironic and silly. But hopefully entertaining, which is more than can be said for most of Daily Tech's comments.

Think of me as the clever person who pretends to be stupid. If everybody did that, the world would be a better place. Idiots on youtube would be laughed at because people would just think they're actually jut trying to be stupid. I'm trying to make the world a better, more tolerable place. Join me in the quest for freedom!


RE: Twitter...
By Lifted on 6/14/2009 9:14:06 AM , Rating: 2
quote:
Think of me as the stupid person who pretends to be clever.


Fixed that for ya.


RE: Twitter...
By FaceMaster on 7/20/2009 8:26:31 AM , Rating: 2
quote:
I'm a twat


Fixed that for ya.


RE: Twitter...
By mikeyD95125 on 6/12/2009 8:33:43 PM , Rating: 2
Are you high?


RE: Twitter...
By jadeskye on 6/13/2009 10:09:00 AM , Rating: 2
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