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I have a high degree of admiration for Twitter’s CEO, Ev Williams. At the Web 2.0 Conference he was interviewed by John Batelle, where he asked what everyone wants to know, “How will Twitter Make Money?”. The answer that Ev gives is an example of why he is such a successful entrepreneur.

He says that they focus 97% of their time in making Twitter “better”, instead of looking of ways to make money, then he subtly hints at the point that the “magic” of making money is on having a large user base. He understands that without a large and growing audience, you can’t make money at all. Just like Microsoft, Google and any other resilient business, you must have a large installer base, so that you can reap your riches. What good is Twitter if only a couple of users are on it? However, Evan Williams understands that if they keep making Twitter better and they keep attracting more-and-more users, whatever monetization strategy Twitter comes up with, can be successful because they will be able to tap into an “existing” large customer base. They have USERS. They power is in having not someone, but an entire community of thousands to millions of people use your technology, service or product, so that you can make money.

My 2 cents

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