Business Models – The Twitter/Google Theory

Ryan    Uncategorized     Startup, Twitter, Yammer

So I read a recent article today posted in online regarding Popularity vs. Income in regards to business plans/models and user popularity. Being the business minded person that I am, on any other day besides today, or maybe any day this week for that matter, I would contend that having a sound business plan, and an idea of how to fulfill growth, is key. Wrong day though.

I’ve always respected the Google way. That is, hone in on a potential market. ‘Search’ Get a client base. ‘Millions upon millions of searchers’ And then create a targeted online advertising structure that flows seamlessly with the regular organic search results.

I may be biased since I have experience working with both Organic Search Optimization as well as Pay Per Click advertising, but come on… it’s sortof a no brainer.

In the NY Times article, the two web services, Twitter and Yammer are looked at in terms of their market base, client/user subscription numbers, as well as each of thier plans for creating profit. On one hand, Twitter has become the ‘thing’ in today’s social blogosphere. Miniblogging or status updating is kinda what it is turning into. No ads, and it’s free. Yammer on the other hand, is aimed more towards the business market. It charges a fee, and does pretty much the same thing Twitter does.  Is there an obvious winner between these two companies and what they have to offer?

For me, and in my own personal endeavors, I’m tempted to believe that creating niche, or creating the thing that people NEED, is more important than creating a straight up business plan before you even go out. Once you find the audience, the people, the kids, the teens, or whatever that love your service/website, then there will always be ways to figure out how to make some money. In this day and age, value is placed more heavily on usership than profitability. Twitter is a great example of this. So is Google, Pandora, MySpace, Facebook, and millions of other ideas out there.

Still the idea that you need to be able generate enough income to be able to sustain yourself in a whole nother idea. If you aren’t doing anything, whats the point. Creating at least a plan on how you’ll be able to pay your hosting fees, and everything else, is important as well. Growth… that’ll come. Being true to an idea that takes time to build off of… go for it now.

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I think in my own entrepreneurial plans, this argument is hugely important, as I have many many ideas, but only a few will be able to turn a profit, and as with most startups, that could take some time.

Bear with me, and like I said, if it was any other day, or any other week… I might’ve said something else.