In internet world of web development, the word monetization means something different. It is something used for generating a revenue by your contents i.e. it may be audio, video or text contents. Monetization can be from advertising,premium content, electronic commerce, affiliate programs or any form generation of revenues.
Monetization is converting an asset into legal tender we’re going to stick with this definition. So anything you own; you can convert it into money. There’s multiple ways to convert things you own into money; So a great example this is finding ways to make money through intellectual and tangible property so that would be selling something like an e-book, an application, a video, a phone app, a song anything that you really can’t touch how do you make money with those things. Well you can sell them but you can do a lot of other things like publishing your video on YouTube might have ads on them; a lot of YouTube videos have ads people make money through that there’s many many ways that you can monetize a product other than just selling it.
You know subscription donations we’re gonna cover a good trend of them. The trend most useful I think so why is it important for you to understand monetization it’s important understand because you could be missing out on revenue that you would other right otherwise be generating; so if you’re just selling a product that you can be using to generate other types of revenue you are missing out on money and the bottom line if you’re running a business you want to make as much money as you possibly can while running an ethical business and generating profits for the shareholders; so if you want to make as much money as you possibly can, you have to understand monetization and the different ways you can make money from products so understanding monetization can help you explore more avenues to generating money from a product that you have or an asset. Different types of monetization so here lets list most useful ten favorite; so sales are the most basic I’m going to use an example of a security application most of this PowerPoint presentation so let’s say you have a security application so you’re selling a security app for your home like a phone app you could sell that to users for ten dollars on an app store and that would be a way to monetize your application your intellectual property you’re selling it. This is the easiest way to understand monetization it’s the easiest lots of people do it but there’s so many other ways; so let’s jump into the others, but I think this is self-explanatory affiliate marketing. I like this one a lot it’s commission based so let’s say you have a security-based product and you sell another come these cameras on your product you recommend you say this product works great if you have these cameras and then that other company gives you a large percentage or any percentage of their sale for recommending their products so let’s say sell cameras or recommend cameras for five hundred dollars from another company that company might give you 30% of that for every sale you generate so that can make you a lot of money especially if it’s niched in the right way so if it’s a security part product and you’re selling security cameras that seems like it should generate some sales and that can get you some extra money so affiliate marketing is that commission based marketing so that can be very useful ad space that’s if you’re selling a space again I’m going to use the app say you sell 5% of your screen space to the security based company, another company you would charge maybe a weekly or monthly fee and by selling that space you’re generating money that otherwise you wouldn’t be making so selling out little bits of space and settling by a percentage of your space is a great way to make some additional revenue. So donations you could go from an angle that you’re offering a free service but you need donations to keep it running, so I think a security-based app would be hard if you think of maybe a non-profit security-based app it might work but I think a great example of this is they offer subscription services and donation services so it’s a free service but they always ask every month or two for you to support their channel you get through a subscription or through donations and then sometimes you get little rewards for donating or subscribing to channels. I love those channels but they are always asking for money and that’s their business model so you could always ask for donations and always have an avenue of income asking for donations but it generally doesn’t work as well when you have these other things going on when you’re obviously selling it in generating revenue why would someone donate as well so you’re gonna have to go with one style of generating revenue you have to choose if you’re going the nonprofit angle or the profit angle selling information is great so to sell information you have to gather it so a lot of times, you’ll get a disclosure saying that if you enter in your information here we’ll send you a newsletter and sometimes that information is then sold to other companies research companies or companies in that area; so let’s say you have your product app your security app and you say instead of you know purchasing the app you can just enter in your information but we’re going to sell your information and you sell that information to other security companies or research companies that’s another way to make money you can generate leads for other companies; so your sale per lead, I think pay-per-click is a great example of this where you throw up an ad you’re not selling the space but what you are selling is every time someone clicks on the ad you’re generating a lead for another company you’ll get money; another example would be if you reached out to all your users and said there’s this person with this great new product please contact them with this code you generated a lead and you’d get paid for that lead the other company wouldn’t have to necessarily generate a sale but the fact that you referred someone gets you a lead credit so you would make money from the generating the lead; so that can be very useful premium content I think a great example of this is freemium so everyone I don’t know if everyone has but a lot of people play those games it’s free to download, free to play but to actually get into the game you have to pay one or ten dollars or you keep reaping I’m not a big supporter of these games I think that a lot of them are scam oriented they feed off of addiction but a lot of people play these games where you pay money to play the game more and more and more this is an example of freemium giving free products but then the real good stuff the real good product you have to pay for but there’s good ways to do this as well where you just have a normal product and as people pay more they get more services attached to them a lot of gyms do this. Disneyland does as well where you they have their daily ticket their season pass and then you can upgrade the season pass to something where you’re getting it every day and discounts in the park a good example of premium content so setting up tiers of product. I think is very useful consulting so setting up a service with your product, I actually do this I’m a tutoring videos and I write tutoring advice based off business and business education and then I also tutor so they reinforce each other; so I don’t make any money pretty much off these videos but I do make money from tutoring occasionally and so if someone wants to link up with me with tutoring they can see my videos and it generates a lead for me so I’m selling a service through my product you can do that with anything the great example for the security based app would be if you had a security consulting business and you also sold the security app and the security apps that set up a consultation with the security business the security business then makes it some money through your app and then security business also or the consulting business also promotes the app so they help each other out selling a service that your product could be a wonderful way to make additional money from membership, a great example that is like Credit a website that have membership so we pay daily weekly or monthly fee in order to be a part of a product to get access to the product or access to information there’s a lot of companies that do membership the reason it can be great is because sometimes people forget about their memberships they just say stay subscribe to something that they think they’re going to be interested in I just read an article and how the given service survive because so many people do not attend they just pay for a membership and they don’t go to the provided service that way the given services able to keep overhead and labor costs down while still generating a lot of revenue and that’s why given services memberships are so cheap that was off for a given services offering of their money podcast so membership can be extremely useful too but you just have to make sure you have a lot of a lot of information or something useful that someone needs to access and lastly a great way and all of these kind of tying together to monetize your product is to sell related products. Let’s say you have a security-based app also make a security ebook a security book a security consultation service also do your affiliate marketing for cameras also so ads based off of your security systems for homes and by doing all this they all reinforce each other so if someone stumbles on upon a book they’ll see all of your other material; someone stumbles upon a video they’ll see everything that your app will see everything so selling one product reinforces every other product so that way when you’re advertising any of these products. You can maybe sell the whole bundle to one customer so this is a great way to monetize to monetize your application or monetize any of your products so to summarize monetization is a conversion of any asset and to legal tender be intellectual or physical. There are multiple ways to make money off of one product and you should use as many ways as possible to generate revenue so if you do want to make an application; don’t think it just about sales think about ad revenue think about making other products think about generating leads, think about Commission, think about everything because it could generate a significant amount more income for you or revenue and it can make your business much more profitable and at the end of the day what are we starting a business for or doing it to make money to make profit for the shareholders; so make as much money as you can by monetization strategies that reinforce each other that was the last point of the ten points. I think that’s significantly important having well-positioned monetization strategies will definitely help you grow your business. It will reinforce each other and you’ll make a lot more money that way and just remember information is valuable to collect as much information as possible and then you can sell that information as long as you do everything legally. Give disclaimers let people know you’re collecting their information to sell it but all of these ways and all this information will help you make a more profitable product a more profitable business and then the end will make you more money so understand monetization its key to developing a successful business.
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