Strategies To Monetize Your Product Idea — TheCodeWork

What is product monetization all about?

Top 5 monetization strategies for your product idea

  • your knowledge of the product/service
  • your target audience
  • the competition, and
  • your business goals

➡ Subscription models

  • A consistent revenue stream provides a more predictable financial outlook. So you can plan-and commit to-marketing or R&D efforts more easily
  • Nowadays, more and more users are fine with paying for subscriptions. As long as they think that they’re getting good value for money
  • You can encourage users to sign up for longer periods by offering discounts on 6 or 12-month subscriptions
  • Subscriptions need ongoing commitment from users, so you must have a strategy in place to keep them engaged
  • If you collect subscriptions from all users on a specific day, your revenue will increase only once per month (think of it as payday)

➡ Advertisements

  • Ad revenue can be significant and automated, especially if you have an established user base. This is largely thanks to the available ad networks.
  • This revenue strategy can be mixed up with others for maximum returns. For example, you can offer a Premium ad-free version for paying customers. This will persuade your users to choose a more valuable proposition (and one that benefits you too!)
  • Advertising is a tricky process. One misstep and you run the risk of annoying or outright offending your audience. Oh, the horror!
  • You have to customize the types of ads that appear within your product/service. This will take tons of time and effort.

➡ Commercialize the existing tools/services

  • This method is quite time-efficient. Since you already have the tool/service in question, you can save some major development time.
  • Especially if you’re a software startup, you can combine your product and services and think of ways to monetize both.
  • If you’re not sure whether your product will generate revenue, you can always test it out as an MVP!
  • You have to do some serious market research before commercializing your services. Check whether others really need the tools you’re offering.
  • See whether it’s possible to package your service/tool into something more presentable that external customers can access.

➡ In-app purchases (and freemium models)

  • In-app purchases allow you to build deeper engagement with your audience and inspire customers to purchase additional functionalities.
  • Freemium apps generally have higher download rates than paid apps. So you’ll have the chance to build a substantial customer base before launching your in-app storefront.
  • When people are paying for your product/service, they expect higher quality. You now have the added responsibility of seeing that your customers get their money’s worth.
  • In-app purchases have to be carefully monitored and developed. Anything involving adding an in-app storefront requires a significant amount of coding to ensure that everything functions properly. So, you’ll need a solid tech support team to run the whole operation smoothly.

➡ Referral Rewards

  • One of the primary advantages of referral programs is that rewards are only given for successful sales. Referral programs are generally pay-for-performance. So, while you are providing something of value, you are receiving far more in return.
  • Your rewards do not have to be expensive or even monetary. You can get super creative with your rewards, such as free upgrades, swag, and so on, which can be more effective than cash.

In conclusion

--

--

TheCodeWork helps early-stage startups validate their business ideas in the market using the minimum viable product (MVP) approach.

Love podcasts or audiobooks? Learn on the go with our new app.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
TheCodeWork

TheCodeWork

647 Followers

TheCodeWork helps early-stage startups validate their business ideas in the market using the minimum viable product (MVP) approach.