Twitter’s business model (or rather lack of one) is a topic of endless debate. Like many successful startups that came before it the company has been successful in getting users and usage when it doesn’t charge a cent. But ramping up revenue is a different matter. And Twitter is now in the process of doing just that.
Most startups in this position simply sell themselves before it becomes too much of a problem and let their new parent deal with it (see YouTube). A nice side benefit of having no revenue is that the MBAs can’t use your actual financials to determine your valuation.
Tuesday, December 16, 2008
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