Money! Monetising your startup from the word go with advertising and affiliates

Name 2.0

The weblebrity formerly known as digijoe @

Monetising is an oft-abused word Over-used/hyped Often spelt wrong Embarrassing to use in front of your friends But it ’ s a clear definition: “how can we take this thing we already have (traffic, users) and convert it into money?” A nd its back in fashion …

Over-used/hyped

Often spelt wrong

Embarrassing to use in front of your friends

But it ’ s a clear definition: “how can we take this thing we already have (traffic, users) and convert it into money?”

A nd its back in fashion …

Monetisation can’t work without acquisition Get traffic (as cheaply as possible) Convert your traffic Get a good price for your traffic This means don’t forget M arketing (SEO, Email, Social media marketing) PR/Buzz Zero cost acquisition makes your job easier Acquisition Monetisation

Get traffic (as cheaply as possible)

Convert your traffic

Get a good price for your traffic

This means don’t forget

M arketing (SEO, Email, Social media marketing)

PR/Buzz

Zero cost acquisition makes your job easier

How we startups currently monetise Subscription Fixed (magazine/newspaper) Variable (e.g. Freemium) Third-party supported Advertising Sponsorships Affiliate Paid Content (advertorial style) Paid Placement (premium listings) License Content Source: Dan Zambonini http://www.boxuk.com/blog/monetizing-your-web-app-business-models Payments Pay per use Purchases (physical/virtual) Donations Long-term revenue Sell customer data Exit Hybrid of the above

Subscription

Fixed (magazine/newspaper)

Variable (e.g. Freemium)

Third-party supported

Advertising

Sponsorships

Affiliate

Paid Content (advertorial style)

Paid Placement (premium listings)

License Content

Payments

Pay per use

Purchases (physical/virtual)

Donations

Long-term revenue

Sell customer data

Exit

Hybrid of the above

Popularity based on top 100 web apps Third-party supported model is prevalent (48%) Advertising is heavily relied upon (34%) Source: Not Techcrunch

Third-party supported model is prevalent (48%)

Advertising is heavily relied upon (34%)

But what is the trend in advertising? Source: IAB/PricewaterhouseCoopers

5 Practical Steps to Early Stage Monetisation Glory

1. Don’t rely on advertising! Display advertising CPM rates lowest for years Network deals expect £0.50 CPM 1m impressions needed to pay for your £500/month serviced office desk CPC advertising often poorly targeted, low EPCs Leaves money on the table

Display advertising CPM rates lowest for years

Network deals expect £0.50 CPM

1m impressions needed to pay for your £500/month serviced office desk

CPC advertising often poorly targeted, low EPCs

Leaves money on the table

2. If you are going to do advertising Go direct – monthly tenancy with targeted sponsors Look for sponsorship opportunities e.g. themed home page, sponsored sections, email Choose sponsors you are genuinely passionate about Create interactive promotions whereby the audience participates – contest, discounts (think what’s in it for the advertiser)

Go direct – monthly tenancy with targeted sponsors

Look for sponsorship opportunities e.g. themed home page, sponsored sections, email

Choose sponsors you are genuinely passionate about

Create interactive promotions whereby the audience participates – contest, discounts (think what’s in it for the advertiser)

3. Affiliate is your friend Low barriers to entry, quick to get going, works with lower traffic volumes Level playing field, get the same deals as larger sites 13% growth this year vs 9% overall online advertising Text-links convert the best (top ranked linking method by affiliates) and get rid of eyesore ad units Allows more creativity, and tighter, integrated approach Use tools such as voucher codes, product feeds, APIs Source:Jupiter Research and eMarketer and eConsultancy

Low barriers to entry, quick to get going, works with lower traffic volumes

Level playing field, get the same deals as larger sites

13% growth this year vs 9% overall online advertising

Text-links convert the best (top ranked linking method by affiliates) and get rid of eyesore ad units

Allows more creativity, and tighter, integrated approach

Use tools such as voucher codes, product feeds, APIs

Affiliate Example – Merchant text links

Affiliate Example – Mashery Mashups

4. Social Media / UGC can convert well User opinions/recommendations drive the buying decision So powerful that FTC is putting holds on word of mouth marketing (WOMM) Affiliate links to retailers from forums/blogs can have up to 10% conversion rate Twitter/IM even higher Be considerate of the users Beware of user backlash E thical usage / disclosure “ A consumer survey ranked consumer content as the #1 aid to a buying decision, cited by 91% of respondents.” (JC Williams Group, 2006)

User opinions/recommendations drive the buying decision

So powerful that FTC is putting holds on word of mouth marketing (WOMM)

Affiliate links to retailers from forums/blogs can have up to 10% conversion rate

Twitter/IM even higher

Be considerate of the users

Beware of user backlash

E thical usage / disclosure

Further Reading Copyblogger Blog Monetisation Post http://www.copyblogger.com/blog-money/ Affiliate Tip Blog (Affiliate) http://blog.affiliatetip.com SEOBook (Internet marketing) http://www.seobook.com Online Marketing Blog (Social media) http://www.toprankblog.com Follow on Twitter @mattb811, @matthewwood, @affiliatetip, @mediatrustpete, @copyblogger, @tedmurphy

Copyblogger Blog Monetisation Post http://www.copyblogger.com/blog-money/

Affiliate Tip Blog (Affiliate) http://blog.affiliatetip.com

SEOBook (Internet marketing) http://www.seobook.com

Online Marketing Blog (Social media) http://www.toprankblog.com

Follow on Twitter @mattb811, @matthewwood, @affiliatetip, @mediatrustpete, @copyblogger, @tedmurphy