May 09
11
Twitter Relevance
The phenomenal growth that Twitter is experiencing provides a remarkable contrast to its retention rate and lack of a model to generate income. On the other hand, the lack of a business model didn’t keep Google from purchasing YouTube in November 2006, for $1.65 billion USD and there have already been offers to buy Twitter from some major players.
Regardless, the Twitter retention rate is deserving of some inspection. Here is what Sean Carton has to say in his post, Twitter’s Long-Term Viability
According to the Nielsen study, 60 percent of registered Twitter users don’t return after the second month. For the last 12 months of the study, Twitter’s retention rate was closer to 30 percent. This kind of attrition means that at some point there just won’t be enough new users to replace the ones who are leaving.