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Twitter Co-founder Biz Stone Sees Business Account Fees Ahead
San Francisco-based Twitter Inc. envisions a future day when its popular free micro-blogging service will begin imposing usage fees for commercial businesses, according to company co-founder Biz Stone.


Lane R Ellis      
Lead Editor,
SearchEngineWorld

 11:58 pm on Feb. 10, 2009 (utc 0)
San Francisco-based Twitter Inc. envisions a future day when its popular free micro-blogging service will begin imposing Twitter Inc.usage fees for commercial businesses, according to company co-founder Biz Stone. As Twitter approaches the third anniversary of its founding next month, the Web-based text messaging phenomenon that has yet to put a money-making plan into effect, has given its strongest indication to date that the plan it chooses will involve some form of membership fee system for businesses using Twitter.

Free Business Twitter Accounts Would Cease Under Plan

Stone said that Twitter's users, which have been estimated to number between 4 million and 6 million worldwide, have included an increasing number of accounts set up by businesses, a group he sees Twitter targeting to make money.

"We are noticing more companies using Twitter and individuals following them," Stone told United Kingdom-based trade publication Marketing Magazine's Fiona Ramsay in a Tuesday report. "We can identify ways to make this experience evenTwitter Inc. more valuable and charge for commercial accounts," Stone added.

Neither Stone, fellow co-founder Evan Williams or other Twitter representatives have released details about how much the commercial account charges might cost or when such a system is likely to be put into place, however Stone made clear that the service did not plan to impose fees for individual non-business Twitter users.

Twitter has grown rapidly to become the third-largest Internet social networking service, trailing only Facebook and MySpace, according to figures released by Web traffic analysis firm Compete, and has increasingly seen mainstream usage and notoriety taking it well beyond its über-geek origins. By some measures Twitter has seen traffic increases nearly 1000 percent over the past year, with most users first signing up to use the service in 2008 according to a recent survey from research firm HubSpot.

Late last year Twitter's social networking rival Facebook offered to purchase the company, which has been valued by some analysts at as much as $250 million, but saw its $500 million stock-backed offer rebuffed. Finding a plan to make money at Twitter has been a difficult task for founders Stone and Williams, as the service is most often used by people as a communications tool rather than a shopping destination.

Co-founders Look To Avoid Traditional Web Advertising Systems

Twitter has been seeking to double the $20 million in investor funding it has received according to recent reports, however implementing the type of business account fee system Stone spoke about Tuesday would likely bring the company considerably more revenue, and avoid traditional Web advertising that both Twitter founders have spoken out against.

Such advertising "feels tracked on" according to Stone, who along with Williams was interviewed recently by New York Magazine. A commercial Twitter account fee plan could include a verification system to ensure the authenticity ofTwitter Inc. businesses, a process that would likely help prevent impostor Twitter accounts. On Monday a spokesperson for the Dalai Lama announced that a Twitter account claiming to belong to the exiled Tibetan religious leader was a fake.

Round Rock, Texas-based Dell Inc. has been one of the most active high-profile businesses using Twitter to engage consumers, with more than 80 accounts set up on the micro-blogging service. The introduction of a commercial fee system could cause Dell to reconsider its consumer outreach programs that rely on Twitter, according to Dell vice president of communities and conversations Bob Pearson.

"If it becomes complicated and costly, our instinct would be to move elsewhere," Pearson told Marketing Magazine. Dell has offered its Twitter account followers exclusive deals, and according to technology news Web site TechCrunch the computer maker sold more than $1 million from promotional holiday offers released through Twitter at the end of 2008.

Twitter Co-founder Biz Stone Sees Business Account Fees Ahead

A growing number of companies have been using Twitter to reach customers and to provide speedy customer support, including Starbucks, Comcast and Amazon. Reputation management has increasingly been the goal of some companies with Twitter accounts, such as Web hosting firm GoDaddy and shoe-seller Zappos.

How Twitter defines a commercial account under a new system of fees could prove difficult. Determining whether a Twitter user is posting messages as aSearchEngineWorld private citizen or as an official employee of a company could be a tricky task.

Twitter's commercialization plan for business accounts as described in the Monday Marketing Magazine report was met with enthusiasm by some industry observers. "I think it is a winning solution to monetizing the Twitter platform," noted one member of the WebmasterWorld Web site, posting in the popular message forums using the handle "pageoneresults."

The proposed Twitter business fee system could help cut down on a growing number of accounts set up on the micro-blogging service that send out unwanted spam messages, according to another WebmasterWorld member. "I think even hard-core Twitter users would be willing to cough up a nominal annual connection fee which would possibly thwart some of the Twitter spammers," the member, using a handle "incrediBILL," wrote Tuesday.

Update:

Twitter "will remain free to use by everyone—individuals, companies, celebrities, etc.," Stone offered in a clarification posted late Tuesday in a message on the company's blog. "We hope to begin iterating on revenue products this year," Stone added.

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