Monetising products and services!
Insights relevant to enhance cash generation from products or service offerings.
What is monetisation? Over the year through my various interactions with founder teams. Including start-up founders and Venture Capital investors. Markedly, certain learnings are obviously apparent. Considering, that all early-stage businesses enjoy the same characteristics. Essentially, the need to deliver proof of concept through cash flow. Therefore, critical is to find ways to monetise products or services.
What is monetisation? wikipedia.org/Monetization
There is no better affirmation of proof of concept. Albeit, a companies ability to charge for their product or services. Consequently, the challenge lies in structuring the customer proposition in order to for monetisation at an early stage.
Founder teams include a combination of complementary skills. Accordingly, a passionate and robust entrepreneur who understands the service offering and a savvy engineering-minded leader to oversee the product development. Moreover, missing from the core team is an experienced commercially adept financial lead.
Ensuring the best-fit revenue model for growth
In my opinion, based on my experience. Ultimately, the result is that critical financial metrics are overlooked during this business foundation phase and subsequent roll-out. Definitely, the most critical being, the bottom-up analysis and refinement of a robust, sustainable and cash generative revenue model.
Accordingly, understanding how to monetise the product and service offering is key to ensuring the “best fit” revenue model. In order, to generate maximum profit which in turn supports sustainable growth. Specifically, founder management teams are often too vested in the functional and technical attributes of their product and go to market strategy. Usually, at the expense of analysing and understanding commercial economics. In particular, the relevant pricing strategy.
A robust financial model based on measurable data points. Not only, will provide a benchmark for business analysis and financial modelling. But, will also act as a blueprint for marketing initiatives. Especially, with regard to, defining a customer acquisition and brand development strategy.
In my experience working alongside early-stage founder teams. Chiefly, management needs to appreciate the key financial drivers and commercial metrics of their business model. In order, to optimise product development strategy. As well as, to implement effective and measurable customer acquisition strategies.
For insights on monetising digital platforms
For more insights on effective customer acquisition strategies
What is a successful Monetisation strategy
Scaling activity on a marketplace is hard. Choosing and implementing the right business model to make it into a great franchise can be tricky too. No marketplace monetisation strategy is universally applicable and frequently unexpected combinations work well. As the scale and liquidity of a marketplace increase and with them the relevance of the marketplace to its participants, the ability to monetise and introduce multiple monetisation strategies increases too.
Here is a list of the ten most popular and successful monetisation strategies.