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Author Topic: Elon musk have Just a year to make back his money🙆  (Read 419 times)
Famous Grouse (OP)
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November 03, 2022, 12:43:08 PM
 #1

Twitter's mMAUs (monthly Monetizable Active Users) stands at 450 million. If they pay $8 per month, that gives Elon $3.6B per month. It will take 13 months to make $44B - the purchase price QED. Elon Musk is a genius.
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November 03, 2022, 01:14:56 PM
 #2

That's if everybody pays, and they won't. However, if just 10% of them paid, then that would be 122.2 months to make $44 billion, granted the subscriber base stays steady, and that's still not too bad, given how much they make in advertising & other revenue. The real number will be closer to 1-5% I'm willing to bet.

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November 03, 2022, 01:45:17 PM
 #3

Twitter's mMAUs (monthly Monetizable Active Users) stands at 450 million. If they pay $8 per month, that gives Elon $3.6B per month. It will take 13 months to make $44B - the purchase price QED. Elon Musk is a genius.

From $20 and then dropped to $8, and it is facing a lot of backlash from users. I think if he really applies that fee then people won't pay to stay, they're willing to quit this social network and find another. Social networking is not a monopoly, it is facing stiff competition and we have a lot of free social networks. Although twitter is the most popular social network, that does not mean it cannot be replaced.

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lepbagong
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November 04, 2022, 11:40:02 AM
 #4

I have to admit that when it comes to calculating profits for a company, Elon Musk is very smart and indeed he is an expert on that.
but if the paid implementation that will be carried out will indeed occur, do all the active users really want to pay?. If everyone really wants to pay, it's clear what the op calculated will definitely happen, Elon Musk will easily get his capital back.

but I don't believe it will be easy, that active users will want to pay. because the funds that will be issued by each active user are quite large and definitely not cheap.
where on the other hand there are still many social media networks that are still free, although it must be admitted that Twitter is very popular because of its simplicity.

there are always good and bad sides to every new implementation, but we will see in the future whether this will work as expected or there will be another mechanism.

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November 04, 2022, 12:13:52 PM
 #5

Well, I guess he's expecting to have that ROI for years and I mean a lot of years as that's a huge amount of money. But since Twitter is a user-base company and not that exact will pay for that monthly.

He's a businessman and he's got some plans on it. Maybe he has thought that many are even encouraged to pay for a subscription on onlyfans with $20 or so, I don't know how much exactly is subscription there.  Tongue

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November 04, 2022, 12:26:51 PM
 #6

Twitter's mMAUs (monthly Monetizable Active Users) stands at 450 million. If they pay $8 per month, that gives Elon $3.6B per month. It will take 13 months to make $44B - the purchase price QED. Elon Musk is a genius.
That's the wrong calculation and assumption Elon Musk cannot guarantee that all its users will pay every month to remain verified not all people, especially those living in a third-world country have $8 to pay their monthly dues, I rather buy groceries than spend $8 monthly than keeping my Twitter account verified and besides many celebrities and rich people hate Elon for charging which was once free, now freedom of speech has a price now for Elon, I will not be a part of this.

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November 04, 2022, 12:43:08 PM
 #7

Sorry in advance if I interrupt your discussion @nutildah, @Maidak, @lepbagong, @livingfree & @coin-investor , but I don't think this discussion has anything to do with Altcoins in general. I know that Elon is deeply connected to the crypto world and specifically the altcoin $DOGE, but I don't see that here. You're just talking outside the context of altcoins.

For the OP, you better move this topic to the right board. For example to the economics board

R


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November 04, 2022, 01:42:52 PM
 #8

Elon Musk is probably in a hurry to recover the money he spent in acquiring Twitter. Formerly, verification does not require payment (https://www.bbc.com/news/business-63478854), it is more of an integrity thing. I think he should take it easy, at least twitter makes a lot of money in adverts. He should know that there are emerging social media platforms, so his quest to recover his money quickly can make people to change to other platforms which have the capability of impacting twitter negatively.

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November 04, 2022, 02:02:49 PM
Last edit: November 04, 2022, 04:36:26 PM by o48o
 #9

Twitter's mMAUs (monthly Monetizable Active Users) stands at 450 million. If they pay $8 per month, that gives Elon $3.6B per month. It will take 13 months to make $44B - the purchase price QED. Elon Musk is a genius.
If they don't choose the easier way and just move for Bluesky Social.

At this point it wouldn't surprise me if ton of people would left from it. I've seen so many official accounts pondering that they should they leave twitter without even having an alternative, that it have left be baffled.

If most key people would leave it, it would eventually die, as most of officials and firms saw that they woudn't NEED to be there.
And it would mean Elon had bought $44B worth of bots, trolls and fanbois. I admit that would be funny as hell.

Edit: And then there's the fact "Elon Musk says Twitter has had ‘massive’ revenue drop as advertisers pause spending". I an not sure how genius move this was.

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November 04, 2022, 02:54:39 PM
 #10

Twitter's mMAUs (monthly Monetizable Active Users) stands at 450 million. If they pay $8 per month, that gives Elon $3.6B per month. It will take 13 months to make $44B - the purchase price QED. Elon Musk is a genius.

It would be interesting to know how many of those verified users are staying with twitter and how many are leaving. I would guess though that the overwhelming majority will stay and then you are absolutely right with your statement that this was a great deal by Elon Musk if everything works out as planned. I think though that those verified users don't really have a choice here. I would guess that they make their money with twitter and therefore they need to be verified and there is no other platform that has the same reach as twitter. I know that mastodon is becoming a little bit more popular at the moment but it is still nowhere close to twitter.
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November 04, 2022, 03:04:53 PM
 #11

It's certain that not everyone will be able to afford that 8$ per month, most twitter users aren't making money off the platform so this 8$ is only going to be compulsory for influencers and marketers on Twitter.
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November 04, 2022, 03:35:42 PM
 #12


I don't even think all of them will pay and what about the percentage of BOTs from those potential monetizable active users? There are bunch of bots in twitter and it can't even be counted.

There are some influencers dislike that idea to make twitter becomes a monthly subscribtion. They may also leaving twitter if such monetization will be implemented. that's pretty much the same like a monthly bill that came from twitter lol. Elon is not a genius but he was seeing an opportunity from what he has bought. I hope that bluesky that owned by dorsey may become a new solution for that.

The fact that if that would be only 30% from total potential monetizable active users that will regularly paying for monthly subscription and that's profitable enough for elon. You pay money to get free of speech. Nothing is free. I rather call it as pay for speech.

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November 04, 2022, 04:09:47 PM
 #13

Currently verified users won't pay 8$ to keep their blue seals. Many of the currently verified users belong to the mainstream progressist beautiful people who have already shared their negative feedback regards this feature. They had the blue seal as a conquest that could be achieved by few. For them it's a shame any common user can have the same seal they carry.

On the other hand, the main trick here is that the monthly subscription can be paid by any scammer pretending to be a celebrity like they have already did before.

The black market of verified accounts inside twitter already exists for a long time, now Musk is attempting to profit with this market as well, because many scammers will pay the 8$ in multiple accounts to execute their schemes. I expect the incidence of scams through sealed accounts to increase considerably after this monthly fee introduction.

But who cares? The important is that Elon Musk is a smart guy and will hit ROI really fast! Cool Roll Eyes

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November 04, 2022, 04:16:13 PM
 #14

Well, I guess he's expecting to have that ROI for years and I mean a lot of years as that's a huge amount of money. But since Twitter is a user-base company and not that exact will pay for that monthly.

He's a businessman and he's got some plans on it. Maybe he has thought that many are even encouraged to pay for a subscription on onlyfans with $20 or so, I don't know how much exactly is subscription there.  Tongue

He will surely implement rules that will benefit his business. He's actually taking action as the new CEO of the said platform by firing thousands of its employees. According to the news, he's planning to replace the manpower with bots. Seems like he wants to decrease his ROI period. Verified users won't pay that amount just to continue using the platform. It will surely backfire on him because users can easily switch to another platform just to avoid charges.
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November 04, 2022, 07:09:44 PM
 #15

Before Elon bought twitter I'm sure of services that charged 2k - 4k dollars to get a twitter account verified! Brands, celebrities and influencers didn't hesitate to pay for this kind of service. Though it was a one time payment where the money is used for press release to meet the requirements of getting a twitter blue tick. Some used the blue tick to stand out while others utilized it for illicit businesses. Now Elon is charging 8 dollars per twitter verification to fight bots and people are complaining. I think influencers feel bad to have a twitter where anybody can get a blue tick. He wants to determine real members from bots using this method. Unless business men move ahead to purchase a subscription for their bots which will add more funds to Elon's bank account. However, He owns twitter and nobody should tell him how to do his business as it won't add up, he doesn't care.

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November 04, 2022, 07:41:19 PM
 #16

First of all, not all users are users, some of them are just multi accounts and thats why there isn't half a billion twitter users, do not be hopeful about it. Secondly, there won't be enough people paying 8 bucks per month to keep that blue tick, it would be more like 50 million dollars a year at the very best guess.

Also lets remember that ads were the only way of making money for twitter before this, and right now twitter is getting a huge damage to their ad income as well since Elon took over, its clear that people are disliking Elon more and more everyday, and many companies do not want to be assosiated with him.

Just look at this;

https://twitter.com/elonmusk/status/1588538640401018880

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November 04, 2022, 08:32:57 PM
 #17

Twitter's mMAUs (monthly Monetizable Active Users) stands at 450 million. If they pay $8 per month, that gives Elon $3.6B per month. It will take 13 months to make $44B - the purchase price QED. Elon Musk is a genius.
Implementing money for advanced perks and the verification is a genius move and everyone who wants to keep that status will be paying him. But the idea behind the implementation is to have total control over the platform rather than depending on the advertisers who will have certain demands of limiting certain users and in order to avoid them, it is kind of necessary but the valuation you just gave is not correct as not everyone of these will paying money to use Twitter.
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November 04, 2022, 08:43:27 PM
 #18

Twitter's mMAUs (monthly Monetizable Active Users) stands at 450 million. If they pay $8 per month, that gives Elon $3.6B per month. It will take 13 months to make $44B - the purchase price QED. Elon Musk is a genius.

Some strange calculations. You should not count from the number of all users, but from the number of users who use the service. I'm sure that a full-scale conversion of all users to a paid service will end in failure for Twitter. Many users, including me, would rather leave the social network than pay $8 a month for a useless tick that an ordinary Twitter user does not need.

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November 04, 2022, 08:56:57 PM
 #19

Twitter's mMAUs (monthly Monetizable Active Users) stands at 450 million. If they pay $8 per month, that gives Elon $3.6B per month. It will take 13 months to make $44B - the purchase price QED. Elon Musk is a genius.

It's not that easy though, not sure if everyone is willing to pay that much.

But obviously, this is the business side of why he wanted to acquire Twitter itself, to make more money isn't it. Maybe it will not be just a year that he will get his money back, maybe it will at least take a couple of years. And not sure if mMAU = blue badge, because that is what the initial news is. They are going to charge for those who are verified and have that blue badge under their names.
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November 04, 2022, 11:24:56 PM
 #20

I think that Elon Musk looks more realistically at the period of return on investment and, accordingly, does not expect to return the money spent on the purchase within one year. But there is no doubt that we will see the introduction of various paid services, as well as an abundance of advertising.

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