Twitter Posts 2009 Profit After All

December 28th, 2009 at 12:00 am
 


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So who says that Twitter won’t be earning a profit this year? The world’s most popular micro-blogging site has ended 2009 by posting a profit, according to an article on Business Week. The profit was mainly due to the deals that Twitter made with search giants Google and Microsoft’s Bing.

The deals made by Twitter with the two online search giants added up to $25 million in exchange for having the Twitter tweets searchable on Google and Bing. The search deals allowed Twitter to post a profit for the year 2009. This surprising news of profitability might not have been possible in most people’s minds since Twitter still does not yet have a long term direct income generating stream to depend on for revenue. It has to settle with making business deals with companies like Google and Microsoft for the meantime. Whether Twitter will continue posting a profit next year will be another matter worth considering.

Twitter still hasn’t made up its mind quite definitely yet as to how it plans to create income streams for itself. Making such deals with Google and Microsoft would not be considered a stable and long term revenue stream unless it comes by way of advertising deals with regular income coming in. But Twitter has long avoided making advertising as a main source of revenue. The same goes with plans to offer paid Twitter subscriptions to its commercial users.

Someday, Twitter may eventually find some way to make money out of their highly popular service. Their online search deals may help them post profits for now. But making it a yearly ritual may not be as easy as it seems for Twitter, unless they come upon a magical idea fast.