Product Monetization Strategies
Product Monetization Strategies
Does generating revenue matter?
A business is a repeatable process that makes money. Everything else is a hobby. —Paul Freet, Commercialisation Expert
This is a neat way of summarising the definition of a business.
What is monetization?
Monetization is the process of deriving revenue from the value you offer to your users.
This revenue may or may not come from your users but it’s fair to suggest that in exchange for the value you offer and deliver to your customers, you can expect to be able to derive some form of remuneration from somewhere in return.
The difference between revenue and profit
Monetization, startups and the product lifecycle
Your monetization strategy is linked to the stage of your product’s lifecycle / business.
Startups which struggled to find a path to meaningful monetization
Guiding principles for monetizing your product without pissing off your users
1. Complement the user experience
- How to complement the user experience
2. Think long term
3. Be creative
5 practical ways to monetize your product
1. Commercialize existing products or technology
These products or technologies are analogous to your core product offerings but can and do provide value themselves.
2. Subscriptions
- Example 1: the newspaper industry
- Example 2: SAAS businesses
- Reducing subscription risks
3. Advertising / commercial partnerships
- Advertising as an upselling tactic