Twitter raises new funds: you're worth $42!

TechCrunch is reporting that Twitter has raised more funds, this time with a $250 million valuation. That means that if you are one of the six million people on Twitter that you’re worth $42.

Sounds about right. I remember Kraft food executives telling me they spend about $40 to acquire customers (er, advertise). Congrats to the Twitter team!

Published by

Robert Scoble

As Startup Liaison for Rackspace, the Open Cloud Computing Company, Scoble travels the world looking for what's happening on the bleeding edge of technology for Rackspace's startup program. He's interviewed thousands of executives and technology innovators and reports what he learns in books ("The Age of Context," a book coauthored with Forbes author Shel Israel, has been released at http://amzn.to/AgeOfContext ), YouTube, and many social media sites where he's followed by millions of people. Best place to watch me is on Facebook at http://www.facebook.com/RobertScoble

Comments

  1. Actually, the real question is: if Twitter would shut off my account, how much would I pay to get back on? Or if someone wanted to buy my account, how much would I sell it for?

    Shall we conduct a little hedonic pricing experiment? i’ll start: I’d pay $50-100/year to get my account back. But I wouldn’t sell it for less than $500.

  2. Actually, the real question is: if Twitter would shut off my account, how much would I pay to get back on? Or if someone wanted to buy my account, how much would I sell it for?

    Shall we conduct a little hedonic pricing experiment? i’ll start: I’d pay $50-100/year to get my account back. But I wouldn’t sell it for less than $500.

  3. That’s essentially the same per-customer valuation used in the heady dot-com days. I think I first came across it in the AOL/Time-Warner merger days when AOL was valued at something like $42 per member.

  4. That’s essentially the same per-customer valuation used in the heady dot-com days. I think I first came across it in the AOL/Time-Warner merger days when AOL was valued at something like $42 per member.

  5. A bank makes about $35-$40/account /year.
    Twitter brings more profit than any bank?
    Twitter is worth more than any bank?

    Seen the current state of the financial institutions it could be.
    Still Twitter is way overvalued.

  6. A bank makes about $35-$40/account /year.
    Twitter brings more profit than any bank?
    Twitter is worth more than any bank?

    Seen the current state of the financial institutions it could be.
    Still Twitter is way overvalued.

  7. Twitter’s business model?

    If they want to go after big money, they’ve got to get less social and more business focused. LinkedIN has got a revenue model b/c they take advantage of big time business people who use their premium services to do research for their businesses.

    With Twitter being open source, I bet they’ll be a lot of premium services that aren’t necessarily owned by twitter, but will allow companies do better research on themselves, competitors and do market analysis on their customers.

    There could be a lot of interesting tools that search all the past tweets and see what was said, constantly monitor and organize this information…

  8. Twitter’s business model?

    If they want to go after big money, they’ve got to get less social and more business focused. LinkedIN has got a revenue model b/c they take advantage of big time business people who use their premium services to do research for their businesses.

    With Twitter being open source, I bet they’ll be a lot of premium services that aren’t necessarily owned by twitter, but will allow companies do better research on themselves, competitors and do market analysis on their customers.

    There could be a lot of interesting tools that search all the past tweets and see what was said, constantly monitor and organize this information…

  9. I must add that there certainly is a big wad of real money – real business -laying somewhere on Twitter. Personally, I fail to see where it actually is; how to grab it.

    Should they provide walled gardens for enterprises?

  10. I must add that there certainly is a big wad of real money – real business -laying somewhere on Twitter. Personally, I fail to see where it actually is; how to grab it.

    Should they provide walled gardens for enterprises?

  11. Twitter is great, but I’m wondering if they are already in the same boat as Facebook and YouTube where monetizing is much harder than they expected even as our expectation of service and stability keeps increasing. Also concerned that Twitter is starting to feel the weight of abusers who are using the system to promote questionable biz schemes, tho hopefully the community can police this stuff as needed.

  12. Twitter is great, but I’m wondering if they are already in the same boat as Facebook and YouTube where monetizing is much harder than they expected even as our expectation of service and stability keeps increasing. Also concerned that Twitter is starting to feel the weight of abusers who are using the system to promote questionable biz schemes, tho hopefully the community can police this stuff as needed.

  13. In an amazing parallel-universe coincidence, KDE 4.2 hath been released, answer to everything, being that Microsoft has basically just copycatted KDE in Win7.

  14. In an amazing parallel-universe coincidence, KDE 4.2 hath been released, answer to everything, being that Microsoft has basically just copycatted KDE in Win7.

  15. I’m still impressed by twitters business model. Micro Blogging, who would have thought!

    I use it about 3 or 5 times per week and am still amazed of how their model works.

  16. I’m still impressed by twitters business model. Micro Blogging, who would have thought!

    I use it about 3 or 5 times per week and am still amazed of how their model works.

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