Twitter® Application Development for Dummies®

Chapter 15. How Twitter Makes Money

In This Chapter

• Understanding how Twitter runs without making money

• Speculating how Twitter might make money

• Funding the development of your Twitter app

After you build your Twitter app, you may want to start recouping your server costs or even start making a profit from your app. If you'd like to try your hand in business, you'll like the next four chapters, which cover moneymaking and promotion strategies for your application.

Since you are building a product on the back of another business, Twitter, you should take the time to learn the financial position of your business partner. Are you making a wise decision partnering with Twitter? I think you are, but Twitter doesn't yet generate any significant revenue. In fact, instead of earning money, they spend it. How is this possible? They have investors, and lots of them. These investors are gambling that Twitter will eventually start turning a sizable profit. In this chapter, I cover some of the common speculations on how Twitter will make money.

Once you understand Twitter's financial position, it is time to look at your own predicament. How will you fund the development of your application? You may already know the answer to this question, but I recommend reading on. You may learn about new funding options that you can leverage to build and grow your app.

Understanding Venture Capital

Venture capital (VC) is money that groups of private investors put into small, immature businesses. These businesses ...