MITEF-NYC 111201 Better Strategies Monetizing Digital

1. 5 Strategies for Monetization
MIT Enterprise Forum:
Better Strategies for Monetizing Digital Offerings
Thinking Out of the Box while Looking across Industry Silos
Shawn Price, President
shawn.price@zuora.com
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2. The Media Industry Today
30%?
Ad Revenues Still in Decline. Charge for Content?
Apple 30% Fee? NY Times New Paywall
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3. The Big Question . . .
How Do You Think Out of the Box
to Monetize Digital Offerings?
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4. Strategy #1
Start with a Freeium Model
How To?
Start Upgrade to
Free Paid Over
Time
Who to Model?
5 Million Users and 60,000
Businesses in 3 years
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5. Strategy #2
Conversion of Free Trials to Paid Subscriptions
How To?
Start w/ Committed Termed
30-Day Subscription
Free Trial
Free for the first 12 months,
and then $5 per month,
pay as you go*
Who to Model?
50,000 businesses within 12
months of launch
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6. Strategy #3
Multiple Editions for Different Customers
How To?
Editions for Editions for
Individuals & Large Teams &
Small Teams Businesses
Who to Model? Increased subscribers from 17K
to 100K in 12 months with 500%
increase in revenue.
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7. Strategy #4
No Commitment, Pay-as-you-Go Pricing
How To?
GB/Hour
VM/Hour
Compute/Hour
Who to Model? Pay-as-you-Go pricing in 32 int’l
markets to millions of developers,
SMBs, and corporations
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8. Strategy #5
Flexible, Tiered & Volume Pricing Plans
How To?
Flexible pricing
allowing customers to
move through tiers
based on volume
Who to Model?
30,000+ customers with
flexible volume/tiered pricing
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9. Summary
Implementing these 5 Strategies Drives Long-
Term Success for Your Business
Examples of Long Term Benefits
Strategy
Revenue
Growth
1. Freeium Churn
2. Free Trials Lower Customer Defense
3. Multiple Editions Acquisition Costs
4. Pay-as-you-Go Competitive
Market Advantage
5. Volume/Tiered
Differentiation
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10. About
What We Do
We’ve built the next generation commerce platform
for 21st century businesses for startups to
enterprises in ANY INDUSTRY to launch and
monetize ANY subscription products and services.
Customers in Every Industry
Check us out
www.zuora.com
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