Twitter can make money with “Follower” currency

Rather than stock in private or public markets(via IPO), Twitter can sell/auction spots on the “Suggested User” list.

“Followers” is a form of currency on Twitter… “Followers” are valuable.  It may very well be the best way to get paid in the Twitterverse.

In keeping with a “Market” based model, Twitter might maximize value and monetization by keeping the Suggested User List a limited resource.  Perhaps 140 spots in all.  And allow companies to bid for spots.  Secondary markets will naturally emerge as companies resell their spots.

Twitter might begin by selling 40 and keeping the rest…  It’ll give them some control over the quality and value.

But how should companies and wealthy individuals use this?

They should not buy it for themselves… instead they should “sponsor” evangelists or enthusiastic early adopters.  This is a win-win-win approach.

• Twitter clearly makes a few bucks
• Companies get more potential customers by promoting and sponsoring evangelists who’s new followers might consider their product/service
• Sponsored individuals win.  They get paid in “Follower” currency and figure out what to do with that.

I like this approach.  It’s market based.  The financial markets is a good and well defined model to copy, not just a metaphor.  It also meets the requirements I discussed in an earlier post, Can Twitter Make Money? A Prototype.

• The “Suggested User” list IN Twitter can not be reproduced(well not IN Twitter) and is in Twitter’s control.
• It doesn’t disrupt the “Twitter Aesthetic” - workflow remains the same, no overt ads, remains simple
• It remains free for users… Monetization does not require charging users.

I haven’t completely thought this through… but what do you think?  What would you add?

(photo via aprilemillo.files.wordpress.com)

Follow me @MartinRuiz.