In a new post, tech blogger Robert Scoble posits that media darling Twitter is under-hyped and underappreciated as a business tool. He suggests that Twitter is worth $5 billion based on the idea of selling business analytics and other professional services to clients, and has numerous, somewhat-hidden advantages over competition like Facebook.
It’s an interesting post to read. But while it’s true that nightclubs, salons, bike stores and many other small and medium businesses are “using Twitter” that doesn’t mean they’re using it well, or it’s a priority, or generating revenue or word of mouth. And it doesn’t mean they’ll still be using it in 2010, or 2011.
Think about your subscriptions to cable television or mobile phone service, where you pay $50, or $80, or $130 per month and often commit to a three-month, one-year, etc. contract with Comcast or some other company. Will a large number of businesses be willing to pay $100 or so a month for business analytic services from Twitter, Inc? The real question for a business in my mind is, Would you commit to a one-year, $1200 contract with Twitter??