Twitter Pays Off for Dell

Microblogging service Twitter famously (or infamously, depending on who you ask) doesn't have a revenue model, but that's not to say that plenty of money isn't being made on the service. The revenues just aren't going into Twitter's pockets.

Dell Inc. (NASDAQ:DELL) showed last week why its vital for businesses to have a "twitter strategy," as a post on the company's blog revealed that the computer maker's Twitter account has added $3 million to the top line since 2007, since it started posting offers and responding to questions on Twitter.com/DellOutlet.

Twitter is not only driving sales at its outlets store; as the blog says, it's "driving interest in new product as well. We're seeing people come from @DellOutlet on Twitter into the Dell.com/outlet site, and then ultimately decide to purchase a new system from elsewhere on Dell.com."

Exclusive promotions through the microblogging service have become a big thing, as other retailers such as Zappos Inc., Woot Inc., JetBlue Airways Corp. (NASDAQ:JBLU) and Whole Foods Market Inc. (NASDAQ:WFMI) are all heavy users of the service. While Twitter isn't yet making money, speculation is that an eventual revenue business model will revolve around charging businesses to use the service much in the same what that Dell and others currently do.

Retailers aren't the only ones using Twitter, though; there are plenty of dealmakers utilizing the service to get and provide their insights, such as former Lehman Brothers Inc. distressed debt and convertible securities trader Lawrence McDonald. Dealscape's Maria Woehr chronicles the top dealmakers to follow on Twitter every week here.

Comments

[AdmC:]

Well, that's the point. Twitter hasn't made a dime from any of this. Makes you wonder how it can be valued at $500 million.

Adam
www.twitterbacklash.com

Jun 15 11:19 AM