A business model for Twitter?

Unless you’ve been living under a rock for the past few months, you’ve heard of Twitter, the short-form social text broadcasting service that everyone online is constantly using. In fact, you’re probably an active Twitter user. You may have even landed here after reading about this article on it.
Twitter is The Stig of the online world: nobody knows quite what it is, but we all know about it and wish we knew its secrets. Some say it will replace Facebook, blogs and all other social media. Some say participation is no longer optional. All I know is it could leave a very big hole if it went away.
And go away it could. The problem with Twitter is that for all its rampant popularity, it has no revenue model. I’ve never paid to Tweet. The guys that make TweetDeck, the paid iPhone app I use while on the move didn’t pay Twitter either. The growing numbers of social media agencies running huge Twitter presences for their clients don’t pay Twitter. There is a growing economy developing around this marvellous free service, and they’re missing out. Which could be a problem, should they run out funds and shut up shop. Some may contend that Twitter is as important to the economy as the banks and ask for taxpayers’ support for a bailout. Somehow I can’t see that catching on.
Twitter should look to other suppliers of free for inspiration. The free software inc boys (RedHat, SpringSource, etc) make healthy millions and sit on cool company valuations while giving away part or all of their core product. Frequently, their revenue streams are derived from guaranteeing quality and availability. not from a different product, but from the value that clients place in working with the manufacturer of the free product. Who knows the ins and outs of the product best? Who is going to give you better results that the guys that made it?
Twitter could exploit this popular Open Source business model: continue giving away the service, start selling value-added services. Compete with the agencies selling Twitter campaigns, unashamedly using their inside knowledge as a competitive advantage. Who wouldn’t choose the makers of such a successful channel to run their PR on Twitter for them? Who wouldn’t like to work with someone who can actually change the way Twitter works to benefit you?
PS to Twitter: This thought is free, like your service. If you decide to go for it, good luck and I hope it works. If you’re feeling grateful and want to share the wealth, I won’t say no 😉