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Over the past decade, we have built a country-sized economy online where the default price is zero -- nothing, nada, zip. Digital goods -- from music and video to Wikipedia -- can be produced and distributed at virtually no marginal cost, and so, by the laws of economics, price has gone the same way, to $0.00. For the Google Generation, the Internet is the land of the free. Which is not to say companies can't make money from nothing.
The Economics of Giving It Away - WSJ.com
Only Dead Fish: Making Money From Social (2)
Image courtesy I've lost count of the number of people who have told me that the problem with social is that you can't make any money out of it. Yet content owners and producers the world over continue to wrestle with what Scott Karp calls ' the 10% problem ' - the problem that if you apply old school media principles to digital content you find that revenue per user is typically a fraction of the revenue per offline viewer, reader, or listener. Content owners aren't short of challenges: information wants to be free, content is ubiquitous, attention is the new scarcity.
Todd Dagres , founder of Spark Capital and one of the VCs that poured an additional $35 million into Twitter recently, 0 diggs digg finds it amusing when people talk about Twitter's lack of a business model. "We think it's kind of funny," Dagres recently told Innovation Economy . "We know how we're going to do it, and we're very confident about how we're going to do it, and it's not necessarily in our interest to tell people how we're going to do it." Dagres, who claims that Sparks and Union Square Ventures are the two biggest shareholders in Twitter, said that there is a business model - it just hasn't been implemented yet. But he did provide one clue.
Twitter VC Laughs at the Idea that Twitter Has No Business Model - ReadWriteWeb
Companies using Twitter for commercial purposes may soon start getting charged for that activity, according to an interview British trade magazine Marketing (part of BrandRepublic) held with co-founder Biz Stone. This is what Stone reportedly said: “We are noticing more companies using Twitter and individuals following them.
Twitter To Start Charging Companies For Having An Account?
Twitter May Have Found Its Business Model - ReadWriteWeb
Twitter ...what is it good for? It turns out this little service is good for a whole lot of things, despite the loud objections of people who've never really tried it. Even among true believers, though, it's been hard to figure out how this much loved company is going to afford to stay alive . How will Twitter make money?