Everyone has an idea but how we execute that idea is often more valuable than the idea itself. Many ideas are not unique. The uniqueness comes about in the individual’s perception (and execution) of that idea. Facebook was not a unique idea, however it was executed at a perfect time and at a perfect place. In Facebook’s case simple was better. The web has given simple ideas a platform where they can shine.  Experience definitely helps, however a unique solution to a common problem become great ideas.

There has been a lot of talk lately about Twitter and Twitter’s revenue model, or their lack of one. With almost 2 million users Twitter has become a phenomenon (one that I don’t understand) but also one that’s plagued by server failures and downtime.

At the end of May Twitter secured a $15 million investment from Boston based Spark Capital. This capital infusion will surely be used to limit downtime and create some revenues – something even a phenomenon needs. Considering that Twitter loses money for every visitor to the site they need to monetize this application quickly. The very conservative estimate (via Bizak Calculator) computes Twitter loses $0.03 for every visitor – that’s based on a very low $50,000 /month server costs. Costs and loses are more likely double that!

Obviously the Bizak Calculator doesn’t add in the phenom factor when computing valuations!