Why TWITTER is Failing - 2 more Directors quitting - Failure to make large enough revenue - A Lesson-Case in Social Media!

The Microblogging service only have two sources of income and none of them are any good for a company that is extremely over-valued.

• Verification
• Advertising

To advertise on Twitter is a hard learning-process. They have rules and regulations in place that practically makes most "promoted tweets" to go against twitters policies. I have tried - Marketing on Twitter just does not work, it is like the company hates money and want to cherry-pick what they want advertised without even considering their income potential.

Facebook on the other hand - they love money, and have practically built a BOOST-button for everything, and if you do not pay for BOOST, your posts are going nowhere - their "traffic-machine" make sure you cannot become a "mass-media" on the blue page. Just think about why they put a limit on 5000 Friends for example, they don´t want you to outgrow them, they do not want anyone to have influence on Facebook, they only want money, and they are great at it.

Google Has been and still are the best on advertisement - Not only do they provide great content-hubs like Google Search, Gmail and Youtube - but their Adsense/Adwords are so integrated into everything on the Internet that they only need to maintain their position and like Facebook, keep buying up competition if there is any.

Back to the Twitter-Case

Adam Bain was the first director to leave Twitter, which indeed was a big red flag to the market in itself. However, now technology-director Adam Messinger and Production-Director Josh Mcfarland also has quit - another two big red flags that Twitter is in big trouble, and investors of course are starting to see the "brainpower" of their company disappearing from the tech-company who has fallen 75% in value over the last three years.

CEO of Global Equities Research, Trip Chowdhry - wrote earlier this year that Twitter-fundamentals are not even worth $10, which would price the company to 7 Billion dollars

What can we learn from Twitters mistake?

First let us recognize that we - steemit - is a micro-startup compared to the size of any of our competitors. We have the future ahead of us and many would argue that our $35 Million Dollar market-cap is about right for now. We are neither under nor overvalued but in a beta-testing and consolidation-period which we have all participated in, written about and debated loudly or quietly depending on what steemit-community you feel most at home in, and we have made great progress and will continue to do so as we grow together into the future.

SteemPower holders (investors without the possibility to quickly trade their positions) with long term perspective will of course need a passive stream of income/dividend from real revenue-streams, and Advertisement will play a big part in that scenario as we grow not only in user-base, but also in reader-base which will be visiting old articles forever and ever searching for things they are interested in, finding it here on steemit shared 50/50 between SteemPower-holders and bloggers, which will make it even more attractive to write more, post more, contribute with more content for long-term earnings on top of short term earnings from upvotes only.

This is what we can learn from our competitors - Be excellent at making money for our users and investors, no cherry-picking but instead make it extremely easy to advertise with Steemit either via our own solution, or through established solutions as I have written about before.

Our net focus should be on these two things - blogger-growth and revenue-streams for both bloggers and investors/sp-holders. If we can manage these two things and keep focused, there is no telling how high our STEEM-price will become - surely a lot more then it is today.

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