Dell Makes $1 million off Twitter

Posted in Tech by Neil Koster on December 16, 2008

twitter_logoIf you, like me, use twitter to broadcast to your friends, family, followers you will understand that it is a very interesting tool. Obama used Twitter to tell who his running mate (Biden) was before the press new, Britney told me she was sad, Dvorak told me he was buying wine at Costco etc. My question is…. How do Twitter make money?

Dell have just admitted that it can attribute more than $1 million in sales to twitter postings to its customers who signed up to its feed….. so this got me thinking…. Venture Capitalists have invested millions in twitter but it is yet to see any profit. It has, in fact, never displayed a model for making money until this story came out. Well kinda.

Twitter’s value is in its  “I can’t do without it”  factor. While it won’t make money for its service day to day there is no denying that should it go up for sale – people will sell there own children to get it. It’s value is only made up by the fact that many depend on it and thus it has value as a saleable commodity.


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