Twitter

Quote from the „Twitter article“: „But with more than 650 employees to support, and income projections for this year well below $200 miilion, it’s not yet clear how it gets from here to there.”

I’ve asked myself many times how these social media companies such as Facebook and Twitter can bring up the money to pay their debts. Twitter does not only have 650 employees who would like to get a salary, they need to pay their infrastructure like buildings, servers and electricity as well. As Twitter users don’t have to pay to be a member of Twitter, Twitter has to find another source for their income.

The article mentions that Twitter recently has raised $400 million and they used that money to buy out early investors. But what happens when they have to pay out these new investors? Do they again have to find new investors or will they be able to pay them by generating profit with their business? The only source of income which I could imagine is some sort of advertising, but I don’t think that they can add an advertisement directly in tweets as this would upset users. The only possibility to place advertisement would be on their webpage, but I have doubts that this could generate enough money to pay all their debts.

“I want to have that ‘aha’ moment” says the article at the end pointing out that Twitter has to come up with some good ideas. I’m very interested to see what ideas they can bring up.