Ad.ly: Mastering how to make money on Twitter

Entrepreneurs are often obsessed with coming up with the next big business idea, especially in the tech realm. Ad.ly’s success monetizing tweets on Twitter is proof that you don’t have to reinvent the wheel.

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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