Nick Cifuentes

Yammer.

So what is all this Yammer-ing about? After coming across a NY Times article posted Monday that spoke about one of my favorite websites Twitter, and another similar modeled website called Yammer, the question came up - microblogging for business? Yes, I know many people have asked this before, but when combining that question & the topic of non-existent ‘dollar-generating business models’ - what is the outlook?

I cam across Yammer last month when I noticed they won the TechCrunch50, and after reading about them in depth more yesterday - a very interesting point arose - the Twitter for the business world - could it really work?

Yammer, a service that mimics Twitter, but charges from the outset…(applaud). Sort of, Yammer is aimed at the corporate customers, and already has 60,000 users. And they aim to answer the key question, “What are you working on?” Their goal is to make offices more productive through updates on company events and work-related questions that will not clog e-mail boxes with mass mailings.

And how is that money made you ask? Well, TechCrunch, a Web 2.0 technology blog, that gave them the TechCrunch50 prize for start-ups, said they were “Twitter with a business model.” This is no knock @ Twitter though - they have been around since 2006, and have more than 3 million users, but have been criticized by some for their lack of a proper “business model”, as said by several VC’s. More on that shortly….

However, Yammer’s business model is interesting, because it spreads virally in a sense. Anyone with a company email address can sign up and start using Yammer for free. But when a company “officially” joins Yammer, giving an administrator more control over security and how employees use the service - it pays $1 a month for each user. And unlike Twitter, that will limit you to a 140 characters in a message, Yammer let’s you type as much as you need to. In Yammer’s first six weeks, it had 10,000 companies with more than 60,000 users sign up, although only 200 companies with 4,000 users are paying so far.

Now that is certainly not a massive amount of income, but Yammer is similar to what Twitter has been - a decision to grow first and monetize second.

Twitter has raised a reportedly $20 million from venture capitalist, and are similar in belief to the ‘grow first, monetize second’ - but has the economic downturn changed that mindset?

Last week, Twitter pushed aside engineer and creator of Twitter, Jack Dorsey, and gave the job to Evan Williams, Twitter’s chairman and more experienced executive. This leads to that overall question…how does Twitter generate revenue?

Early next year, Twitter has plans to introduce many ways to introduce revenue streams into the current business model. I believe one idea is to charge companies that want to use Twitter as an official channel to talk with their customers and monitor what they are saying.

It seems that many companies grew on the idea of first growing the product and then monetizing thereafter - Google began as a search engine with no revenue before turning a lucrative advertising model that turned it into an internet god. But any company needs to know, chances they will have ‘Google-like’ success - doubtful.

Let’s go back to Yammer though for a minute - obviously chances everyone @ your workplace is on a computer?  Very good. Now, let’s promote in-house conversation how? - emails do get very cluttered and does everyone read them? No.

I admit, I have never read everything that came from the ‘higher-ups’ from places I once worked for, that includes stuff from HR or other departments that just get overcooked in your inbox - you don’t have time, and many the patience to read it all.  So here comes Yammer - ‘a corporate Twitter’ that includes a bevy of security features, include limiting I.P. addresses, requiring passwords, cutting off ex-employees and removing certain messages. Once that company administrator takes over, Yammer charges a $1 per user per month.

Yammer has already recruited companies like Cisco Systems, Xerox and Hewlett-Packard, motion picture companies, and a large casino company.

We have to look @ the obvious for a second though - Yammer is a new way to do a lot of stuff people already do in the workplace. Social enterprise software like SharePoint, Jive Software offer many of these features, as does Twitter and Facebook to communicate with co-workers. But with Yammer, will this more concentrated method of communication change the way businesses communicate?

I suppose all we can do is wait on this one.