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June 22, 2009 11:33 AM PDT

Twitter will flood you with sponsor offers. Or not

by Caroline McCarthy
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Memo to Twitter: If you're really going to be making money with sponsored direct messages, as a New York Times article hints, please make sure it doesn't get annoying.

Twitter investor Todd Chaffee of Institutional Venture Partners told the Times that "e-commerce, including links to products and turnkey payment mechanisms, is a likely revenue stream for Twitter." That's not too surprising. Some companies have touted real success with Twitter-only deals: electronics manufacturer Dell, for example, says it's racked up a few million in sales. Airlines JetBlue and Southwest sometimes advertise special fares on Twitter. It's pretty logical that Twitter would want a slice of this; the catch for the company's team would be how to charge for this sort of thing without taking away features that are already offered for free.

The bigger challenge, however, is not making it annoying. The other day I posted to Twitter about difficulties with my iPhone. I appreciated getting responses from people who were able to inform me that all I had to do to keep my iPhone from skipping songs was to turn off the "shake to shuffle" feature that's new in the iPhone 3.0 software, but I'm not sure if I would want quasi-unsolicited offers from tech support outlets or the like popping up as direct messages in my Twitter feed. Twitter would have to tread very carefully if it plans to be this intrusive--many people receive direct messages as SMS, for example.

Now, there's reason to take the whole thing with a grain of salt, because "sponsored messages" are just the latest potential Twitter business model we've heard about from people affiliated with the service. Last we heard, Twitter was going to be offering some kind of analytics or customer relations management suite for businesses that want to use it more effectively. There have been whispers about search ads, too.

So maybe, when it comes to business plans, Twitter is pretty much throwing ideas at the wall and seeing what sticks. Especially since Twitter co-founder and CEO Evan Williams left a comment on a Business Insider post about Chaffee's remarks that make the whole thing seem much less likely.

"To be clear: Todd is a Twitter investor and a very smart and helpful guy," Williams wrote. "However, he is not actually on Twitter's board and, in this article, he's brainstorming on his own. These are not in the least bit concrete plans of the company."

But if we want to turn to the "juicy gossip" side of things, consider this: Twitter's executives have been very laissez-faire about allowing the users to shape the service before determining the best way to make money off it. Seems like its investors might not be in the same camp.

Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos. E-mail Caroline.
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by ca5ter June 22, 2009 3:57 PM PDT
Twitter is as dumb as comments on stories.
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by ITcomposer June 22, 2009 7:49 PM PDT
This is as clear as daylight, TWITTER needs to make cash now, not tomorrow, not next year. Whether this gets through or not those guys need to come up with a game plan, those servers need power, and that data center will see growth, like it or not, and Virtualization can only go so far.

Best of luck to twitter, for giving us a view into the news others fail to cover, in the raw.
by galadan111 June 22, 2009 8:00 PM PDT
i am really sick of hearing about Twitter. stop the stories about the latest useless thing that is over-marketed to death.
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by jessiethe3rd June 22, 2009 10:36 PM PDT
Twitter sucks. It has been captured by the mainstream media and now everyone is Twittering... *GAG* I was watching UFC last night... "Dana is twittering! Check him out at twitter.com\danatwitters... who gives a flying puck... it's stupid.
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About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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