The information and technology sector has undergone major developments over the past few years. The increased use of internet across the world has given rise to numerous social media platforms. Twitter is among the most recent online communication avenues availed by the internet. According to Burkhalter & Wood (2015), the use of Twitter has grown consistently and reached over two million active users. Research shows that Twitter has users from all walks of life. The users include politicians, celebrities, organizations and businesspersons among other personalities. Twitter has proved to be a fast and reliable avenue for sharing information among people from different parts of the world. Studies show that there are over one hundred daily active Twitter users from different parts of the world.
Almost all nations of the world have active users who share information regarding political, economic and social activities that affect the day to day operations in the global arena. The business world has largely benefited from Twitter since investors and firms in the various industries advertise their products and services easier as compared to when it never existed. Stim (2016) states that Twitter has built a strong foundation for global socialization since millions of people meet every day to discuss and share information about themselves and experiences in life. An analysis of the Twitter financial returns portrays that the corporation has not made sufficient progress in terms of earnings. Therefore, the management of Twitter Inc. should implement effective mechanisms for charging individual users to boost profitability and financial stability for the corporation.
Introducing Charges for Twitter Usage
A large number of users on Twitter proves that it has gained global recognition by people and institutions of different status. The number of active users increases from time to time despite the increased competition in the social media fraternity. The trend is an attestation that Twitter has grown to be a favorite spot for many. It is imperative for the corporation to consider using the large population of users for financial prosperity. Therefore, introducing a small service charge for individual users is a strategy that can boost generation of funds for Company. Twitter has gained a large number of Royal users who would not feel the pinch of paying a small fee for the services they enjoy. Introducing a charge would make the users feel part of the corporation because of direct involvement in its developmental agenda. Some users such as business organizations and individuals generate high revenues courtesy of the support offered by Twitter in terms of advertisement and marketing of their various product and services (Armstrong et al., 2014). Essentially, Twitter rallies the existing and potential customers for firms in one platform thereby making dissemination of information simple and faster than in the ancient times when it had not been discovered. Therefore, business organizations, customers, and investors that have been united by Twitter should return the favor by paying some fee to support the development of other important features that would aid in solving the existing social, political and economic dilemmas in the present world.
Murthy (2013) argues that Twitter has become a resourceful tool for research to individuals seeking to tour different parts of the world or planning to establish businesses. The information shared by users gives the interested parties ample time to evaluate the best options and ideas before making the final decision. In this regard, Twitter saves people and organizations a lot of time and resources that would have been wasted if the information need was to be searched from different platforms. Moreover, Twitter facilitates direct communication among the users, and therefore planning of business, political and social activities has been simplified. Therefore, Twitter has become a daily companion for decision makers, and it would be hard for them to stop using it due to charge issues. Therefore, the management fraternity of the Twitter Corporation should decide strategies for introducing charges that are not oppressive to the individual users. In that cases, the users would not feel offended or betrayed to sacrifice some money to the company. In essence, users will adjust quickly to the new changes because they cannot afford to miss the important information they get through Twitter, The fact that Twitter allows 140 characters in a message makes access to information quite easy (McFedries, 2010). Some users might not have time to read long comprehensions, but the short message space ensures that users include only the important information. In this regard, no user would refuse to pay a service provider who ensures that everything is simplified for immediate consumption. However, it is imperative to recognize that there exist some advantages and disadvantages for introducing charges on Twitter services.
Pros and Cons of Charging Twitter Individual Users
Twitter’s individual users refer to users who use the platform for non-commercial motives. Twitter is one of the largest social media’s hence it is significant to consider charging the services rendered to these users (Salapa, 2016) . The social media business has reached an inflection point where services that were rendered for free need to be charged. Before Twitter decides to charge individual users, it is important for the company to consider the positive and negative impacts of such decision on its growth strategy. In particular, charging individual users can be encouraged if it does not have negative effects on the significant opportunity as far as expansion of user base is concerned. In addition, charging users would be deemed appropriate if it can increase the company’s revenue and still provide high value to users (Dolan, 2016) . This is because there are several paths that the company can take rather than the current path that continue to face challenges to increase the revenue numbers and maintain the lagging monthly average users (Culotta, Kumar, & Cutler, 2015) . On the other hand, there are numbers of ways that might present potential opportunities to the individual users and Twitter. The fundamental changes suggested is that Twitter starts charging a nominal amount per an individual user’s account. The following are Pros and cons associated with this approach.
One of the major pros of charging individual users is that Twitter revenue would significantly increase. As a result, Twitter would use the additional revenue to extend its offline advertising campaigns (Ingram, 2012). Twitter advertising supplements offline advertising campaigns such as Tv ads. In addition, the use of hashtags enables advertisers to extend their campaigns offline by driving crucial earned media and continuous conversation on Twitter. Twitter can also use the increased revenue to expand its platform and integrate more content (Crawford, 2016). This is because Twitter plans to develop and acquire new technologies to enable its platform partners to distribute all forms of content. Lastly, Twitter Inc. can utilize the increased revenue to develop a platform for additional advertisers. According to Crawford (2016), Twitter strongly believes that new advertisers around the globe represent a substantial opportunity to increase its advertising revenue from global advertisers.
One of the major con is that individual users may not be willing to pay for the service resulting in a significant decrease of the monthly average users. Currently, users are adopted to utilizing social media services without being charged. Failure of users to pay for service charges would result in loss of advertising revenue that could, in turn, harm the Twitter business. According to Dolan (2016), much of Twitter’ revenue is realized from third parties advertising. Another con is that the current noise from bogus accounts as well as that of bots and the likes. As such, charging the individual users may result in an upside that much of these bots and bogus accounts would disappear hence causing a potential reduction of the overall noise linked to the data stream. This would be beneficial for those wanting to monetize the Twitter data stream (Crawford, 2016).
It is recommendable for the Twitter to lay down strategies that align its strategic plans with the user's requirements. In so doing, the company will ensure its value to their customers and the enterprise by adopting a relevant change. From an economic perspective, users should always be prepared to pay for valuable products or services such as that provided by Twitter. In particular, Twitter should consider charging $4 per year for an individual account and twenty dollars per year for a corporate account since the costs are truly nominal.The desire to charge nominal costs is driven by the fact that free services are not always appropriate because they can potentially skew the market considering that the user base in non-natural directions. Therefore, it is the right time for the Twitter to consider adopting a change.
Twitter is one of the social media platform growing at a faster rate as it provides an avenue for sharing information. Since Twitter has a large population of users, it can introduce a small service for individual users to boost the amount of revenue generated. However, such a decision can face opposition from users who may opt to use other free social media. As such, introducing a service charge for individual users has both pros and cons. However, the advantages outweigh the disadvantages hence it is recommendable for Twitter to introduce such a charge.