Lots have been written and hyped about Twitter since its creation three years ago. Twitter has been touted as the fastest growing social network (19% of U.S. Internet users tweet), and a communication medium with still unforeseen capabilities. The company closed a $100M funding for a $1 billion valuation on Sept 25 of this year. It brought in new investors (T. Rowe Price and Insight), therefore setting new expectations for a possible IPO.
That much-discussed funding brought the question of revenue, or rather the lack of it, as well as the lack of a clear business plan. Twitter plans to get $4M in revenue this year, a far cry from a $1 billion valuation. Also Twitter seems to have reached a plateau of about 21 millions unique visitors per month (even though that number does not account for access via 3rd party applications, which are used by more than half of the users). Thus the questions are: how and when Twitter will generate any sizeable revenue; and how Twitter will generate more traffic and get more people to use its services?