Twitter, the widely used microblogging platform, has faced difficulties in generating profits in recent years. In a bold move, Elon Musk acquired Twitter for $44 billion on October 27, 2022, and set his sights on making it a profitable business and transforming it into the everything app “x”. “Last 3 months were extremely tough, as had to save Twitter from bankruptcy. Twitter still has challenges, but is now trending to breakeven if we keep at it” said Elon Musk in a Tweet.
Last 3 months were extremely tough, as had to save Twitter from bankruptcy, while fulfilling essential Tesla & SpaceX duties. Wouldn’t wish that pain on anyone.— Elon Musk (@elonmusk) February 5, 2023
Twitter still has challenges, but is now trending to breakeven if we keep at it. Public support is much appreciated!
Since taking over the company, Elon Musk has taken several measures to cut costs, including reducing the headcount from 7500 to 2300. This move was aimed at streamlining the company’s operations and making it more efficient.
In this article, we explore the steps Elon Musk is taking to monetize Twitter and secure its future success.
Twitter Blue: A New Subscription Service
Shortly after the acquisition, Twitter launched Twitter Blue, a subscription-based service that provides users with a verified badge and additional features such as the ability to edit tweets, upload higher-quality videos, and have higher-ranked replies. This new service is priced at $8 per month and is a first step towards generating revenue for the company. With the growing trend of users seeking premium experiences on social media, Twitter Blue is well-positioned to attract a large number of subscribers.
To all complainers, please continue complaining, but it will cost $8— Elon Musk (@elonmusk) November 2, 2022
Ad-Free Tier: A Higher-Priced Option
In addition to Twitter Blue, the company is said to launch another paid tier that will allow users to use the platform completely ad-free and with additional features. This service is expected to be priced significantly higher than Twitter Blue and will offer users a premium experience. The ad-free tier is a response to the growing demand for ad-free experiences on social media platforms, and it is expected to attract a significant number of subscribers.
Also, there will be a higher priced subscription that allows zero ads— Elon Musk (@elonmusk) January 21, 2023
API Goes Paid: A New Revenue Stream
Twitter’s API, previously free to use, could now cost as much as $100 per month. This change will provide a new revenue stream for the company and will be a significant shift for businesses that rely on API for customer service. With the growing importance of customer service in the business, Twitter’s API is well-positioned to generate significant revenue.
Yeah, free API is being abused badly right now by bot scammers & opinion manipulators. There’s no verification process or cost, so easy to spin up 100k bots to do bad things.— Elon Musk (@elonmusk) February 2, 2023
Just ~$100/month for API access with ID verification will clean things up greatly.
Introducing Payments: A Step Towards the Everything App “x”
Twitter is also working to introduce payments on the platform and has begun the process of obtaining regulatory licenses. This move is a step towards Elon Musk’s bigger vision of the “everything app,” which would allow users to carry out a wide range of activities within the platform. With the increasing trend of social media platforms moving towards becoming all-in-one platforms, Twitter’s payment feature is well-positioned to attract a large number of users.
Buying Twitter is an accelerant to creating X, the everything app— Elon Musk (@elonmusk) October 4, 2022
Ad-Revenue Sharing with Content Creators
Twitter has introduced a new feature for Twitter Blue subscribers where they will earn a portion of the ad revenue generated by ads shown in the reply threads. This new feature is aimed at encouraging more users to create content on the platform and attract more advertisers, leading to increased ad revenue. The ability to earn revenue from ads is only available to Twitter Blue subscribers, making it a valuable incentive for users to upgrade. This innovative approach to monetizing Twitter is a cost for the company, but also an investment in its future success.
Starting today, Twitter will share ad revenue with creators for ads that appear in their reply threads— Elon Musk (@elonmusk) February 3, 2023
$1,000 Dollar for Gold Verification Badge
Twitter is reportedly offering Gold Verification Badges to businesses for $1000/month and affiliate accounts for $50/month. This verification provides a trusted and verified presence on the platform, helping businesses stand out and connect with customers. As businesses use Twitter to advertise and handle customer service, many will likely be forced to pay the high fee for the verification in order to maintain a credible presence on the platform and reach a wider audience.