Revolutionary business model of X: Distributing ad revenue to Blue subscribers


X (formerly Twitter) has launched a service called Blue, where users can subscribe for $8 per month to remove ads and access special features. However, that's not all. When users subscribe to Blue, they are offered a surprising mechanism where they receive a share of the ad revenue that other Blue users generate by viewing ads.

This mechanism benefits both X and Blue users significantly. X can establish a stable business model not reliant on ad revenue, and Blue users gain an incentive – the more their posts are viewed, the higher their distributed earnings.

In fact, current Blue users, estimated to be up to 500,000, already have users earning $2,000 per month through this model. With 1 million Blue users, their income could increase to $4,000 per month, and with 5 million users, it could reach $20,000 per month.

How is X implementing this model? The secret lies in the strategy of distributing ad revenue generated from ads viewed by other Blue users. Since Blue subscribers are valuable to X, sharing the ad revenue with other Blue users doesn't negatively impact X. Instead, as the number of Blue users grows, X's own income also increases.

This is a win-win business model resembling "your mallet in my yard." Through this mechanism, X can increase distribution payments to Blue users while boosting its own income. Additionally, Blue users can feel the value of their contributions and post more actively through this system.

How does X promote this model? Interestingly, they've adopted a unique approach. X encourages Blue users to "publicize the distributed earnings they receive, thereby encouraging others to subscribe to Blue." Essentially, Blue users themselves become X's advocates.

In this manner, X is deploying a revolutionary business model through the Blue service. X will likely continue refining this mechanism to encourage more people to join Blue, bringing happiness to both X and its Blue users.