Twitter can make money? Will wonders never cease.

Despite the fact that Prof. Kagan's final contains questions regarding this very subject, I thought it was time to blog a bit on Twitter. I think everyone (and their grandmothers) know what it does but the biggest question remaining is "Can it make money?"

Well, apparently Dell says "YES!"

In a recent WSJ.com article "Dell Sells $3 Million Through Twitter", Dell reports healthy sales generated by their outlet site, DellOutlet.

With over 620,000 followers, Dell uses Twitter's brief and timely communication model to disseminate time-sensitive and quantity limited promotions. (i.e. 20% off any Dell Outlet Printer. Enter at checkout: 06G$WMFPKXPCT8 – exp 6/2 or after 1st 500 redemptions) and answer customer questions.

The key to this success lies in adapting the Dell Outlet messages to the Twitter medium:

• Niche segmentation: Outlet customers
  
• Promo distribution is fast and often
  
• Promo is limited by time and qty

By customizing a transitory offer to the transitory medium for a transitory audience, Dell has been extremely successful in tapping to this channel.

So we know Dell makes money! Now if Twitter actually charges Dell for this service, they may make money too!