While Twitter may not have a bullet-proof business plan yet, other companies have figured out how to mint money off their service. Ad.ly – a tiny marketing boutique based in Beverly Hills – inks contracts with celebrities who agree to send out marketing tweets on the company’s behalf. In exchange for pimping products, the celebs get paychecks that range from $200 to $25,000 per tweet.

How does Ad.ly make money?

1) Marketers who want to promote a product approach Ad.ly to launch a social media marketing campaign.

2) Ad.ly helps marketers pick 12 to 50 celebrities from the company’s stable of 1,000+ public figures to promote a product or service on Facebook and Twitter.

3) Ad.ly writes content for tweets that will appear on Twitter and/or status updates that will show up on Facebook.

4) Celebrities sign off on the content written by Ad.ly.

5) Ad.ly sends out the tweets and/or Facebook status updates – typically with a link back to the product or service a marketer wants to promote.

How much do celebrities make on Ad.ly?

That depends on the clout of the celebrity, but according to the Los Angeles Business Journal, anywhere from $200 to $25,000 per tweet.

How much do marketers pay for Ad.ly’s services?

$25,000 on the low end and more than $100,000 on the high end. To date, Ad.ly’s most successful campaign had Charlie Sheen advertising Internships.com’s services on Twitter. Ad.ly CEO Arnie Gullov-Singh didn’t divulge the cost of the campaign, but he did say it was “the highest amount ever paid in the company’s history.”

“I’m looking to hire a #winning INTERN with #TigerBlood. Apply here – http://bit.ly/hykQQF #TigerBloodIntern #internship #ad,” Mr. Sheen tweeted on March 7. Forty-eight hours later Internships.com was inundated with more than 74,000 applications for the position.

The moral?

Entrepreneurs are often obsessed with coming up with the next big business idea – especially in the tech realm. Ad.ly’s success is proof that you don’t have to reinvent the wheel. The start-up just piggy-backed on the success of Twitter and Facebook while carrying celebrity endorsements into the 21st Century. They’re getting rich in the process, too.

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Tags: ad.ly, entrepreneurs, Facebook, Twitter

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