Generating revenue is what any business is all about. In case, you are not generating money out of business activity, then it is considered as a mere hobby or passion. In simple words, monetization is the method of making a profit via assets, services or products and the method involved in marketing as well as the sale of the same is known as Monetization Strategy.
Most of the companies deal in two types of businesses, the first one is selling or services and the next is selling a product.
Monetization Strategy for A Product
Your product can be a digital product or a physical product. Within these broad categories – there is an endless list of sub-categories of products you can sell.
“Build and they will come” just does not work anymore. Well, in most cases it does not work. So you have to actively market your product and get it in front of your prospective buyers.
Advertisements and infomercials are some of the best ways of letting people know about your shiny product. There are many channels that are dedicated to such marketing activities.
Some media displays and channels even conduct surveys with people who have already used the product or the service. This feedback can then be used as social proof for other buyers. This social proof provides more credibility and people tend to trust the product and your company in matters of authenticity and quality.
If you are looking to sell digital products, then there are a few ways of doing the same.
1.Advertising: Displaying banner ads and interstitial ads are one of the fastest ways of making money. All you need to do is subscribe for the display of ads and you get paid per click on the banner or on the number of views.
2.Email marketing: Very often, we get pop-ups, when we visit a specific website that asks us to fill out a form and subscribe to the newsletters. By collecting data of the subscribers, it is further used in marketing campaigns and generating leads.
3.Free & Premium Model: Many apps and websites have limited features available for users who are registered based on the free model; however, in order to unlock more features, they are supposed to subscribe to the premium models.
4.Premium Apps: Certain applications do not offer a free download. Due to the criticality of such apps, they have to be paid for and people pay for the same.
5.Subscription models: By targeting potential customers, who are regular on the website, websites also apply such monetization strategies where they get the regular visitors to subscribe for a specific product, on discounted prices.
6.White Labelling: Famous brands play a very important role in selling apps. In case you have an excellent application that has amazing features, you can simply let a good brand label it and you, as the product developer, can get a certain percentage of the revenue that the company generates.
These channels need to be understood and executed with proper planning. Each one has some obvious and hidden costs. If you are not careful, you may end up spending a lot of money on a particular channel without seeing any kind of returns.
So you must track every aspect of your marketing spend and measure against common sense KPIs. If you see the return on investment degrading for a particular marketing channel – it may be time to revise the tactics or drop the marketing channel altogether.
Some changes you may want to consider while optimizing your marketing channels are:
1) You can optimize your user interface (webpages or app) such that they are more user-friendly and provide a better user experience.
2) Adopt content marketing and publish valuable content. This helps in getting free exposure from search engines and also provide value to your prospects and builds your authority and credibility.
3) Monitor your marketing budgets and adjust the mix of marketing channels you are currently using. Optimization is all about allocating extra budgets to the channels which are working and dropping the channels which are underperforming.
4) You can also adopt offline marketing tactics and use local groups, associations, trade shows and other congregations to get exposure for your /company.
Monetization Strategies to Promote/Sell Services
Promoting a service is pretty similar to promoting a product. The main difference is that while promoting a service – you have to emphasize the benefits your customer will get from your service. While a product may have apparent features and benefits – in some cases, the benefits of service are not apparent on first look. You need to ensure the service provides more value to the customer than the price you are asking for.
Building customer trust is the most important part given the fact that people don’t tend to change their trust from other established companies. You need to get them to try your service so that they know the effectiveness of your brand and so that they become a part of your potential customer base.
1) Social Media Ads: The best way to promote a service and generate money out of it is by advertising about it on social media websites. It is the fastest way to let people know of something new being introduced in the market.
2) Print Advertisement: The only way to monetize a service is by displaying its effectiveness so that more people buy it. This can also be done by the help of print media where you can get flyers and pamphlets circulated in order to promote the services amongst a variety of users, locally.
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