Gaza Sky Geeks Monetization strategies juan bermudez - final

1. Juan Bermudez juan@nightpro.co @jbermudez5
MonetizationStrategies

2. Astartuprunningoutofmoneyishorrible.
(Ithappenedtome)

3. Monetizingisimportant,butbuildinga
greatproductshouldbeyourfirstpriority.

4. Whendoyouplanoutmonetization?
Thinkaboutmonetizingearlyon,evenif
youdon’tturnitonuntillaterstages.

5. Anexampleof agreatproductturningmonetizationlateron
Launched in 2009
Has 40M+ users
Revenue Sources
Promoted pins ( early 2014 )
Buy Button (mid 2015)

6. Wheredoyoustart?
Aretherecompanieswithsimilarofferings?
It will be first instinct to look at what your competitors are doing, but you can also learn a lot
from other industries or verticals that can give you a fresh point of view on how to monetize
your product.

7. Dependingonthetypeofproductyourbusinessmodelcanvary.
Content Apps/GamesMarketplace SaaS Hardware
Whattypeofmonetizationstrategiescanyouuse?

8. RecurringSubscriptionService
Usersarebilledperiodicallyfortheaccesstoyourproduct.
Typesof Strategies - RecurringSubscriptions

9. ExamplesofRecurringSubscription
Typesof Strategies - RecurringSubscriptions
www.invisionapp.com
SoftwareasaService(SaaS)
Chargesmonthlydependingonthe
amountofprojectsandusers
needed.
1Projectforfree

10. ExamplesofRecurringSubscription
Typesof Strategies - RecurringSubscriptions
www.birtchbox.com
MonthlyProductSamples
Everymonth thecustomergetsa
boxofsamplesfromcurated
beautybrands.

11. ExamplesofRecurringSubscription
Typesof Strategies - RecurringSubscriptions
www.netflix.com
MonthlyaccesstomoviesandTV
shows
Userscanviewcontentondemand
andasmanytimesastheywishfora
fixedprice.

12. ConsiderationswhenimplementingaRecurringSubscription
Typesof Strategies - RecurringSubscriptions
Youcanofferdifferentpricepointsto
matchdifferentcustomerprofiles.
Example:Basic,Team,Enterprise
Avoidofferingtomanyplans,between1-4
optionsisverycommonbutthiswillvary
basedonyourbusiness.
Atrialperiodletsuserstestyourproduct
foraspecificamountoftimebeforepaying.
Usually14-30days.
Evaluateaskingforpaymentinfoonsignup
orwaitinguntiltrialisover
PLANS TRIAL

13. ImportantmetricsforaRecurringSubscriptioncompany
Typesof Strategies - RecurringSubscriptions
Howmuchrevenuewillyoukeepgeneratingeverymonth.
MonthlyRecurringRevenue
Churn
Whatpercentageofcustomersareyouloosingeverymonth.
CostperAcquisition
Howmuchisitcostingyoutogainanewcustomer.
LifetimeValue
Aprojectionofhowmuchrevenueyoucangeneratepercustomerintheirlifetime.

14. Marketplace
Createaplatformwhereuserscanexchangeservicesorgoods,for
everytransactionmadethemarketplacetakesafee.
Typesof Strategies - Marketplace

15. ExamplesofMarketplaceBusinesses
Typesof Strategies
www.ebay.com
EcommerceMarketplace
Userscansellorbuyawiderangeof
items.
eBaymanagesthetransactionsand
chargestheseller 1-10%ofthetotal
saleplusasmallfeeforlistingthe
product($0.30)

16. ExamplesofMarketplaceBusinesses
Typesof Strategies
www.coach.me
Habitformingapp
coach.me

17. ExamplesofMarketplaceBusinesses
Typesof Strategies
www.airbnb.com
Airbnbtakesa3%fee
fromthehost

18. Importantmetricsforatwosidedmarketplace
Typesof Strategies -
Liquidityisthereasonableexpectationofsellingsomethingyoulistorfindingwhat
you’relookingfor.
Liquidity
Simon Rothman of Greylock Partners
Thehigheryouraveragesellingprice,theloweryourconversionratecanbe.
MarketSize
Averagesellingprice
Youneedtogrowyourmarket,buyersandsellersalikehavetoseethevalue.

19. Hardware
Addingaserviceontopofyourhardwareproductand/orcreatinga
platformthatotherdeveloperscanleverage
Typesof Strategies - Hardware

20. ExamplesofHardwareasaPlatform
iPhone
$13Billionpaidtodevelopers.
Appletook30%beforepayingthedevelopers.
Typesof Strategies - Hardware

21. ExamplesofMarketplaceBusinesses
www.gosphero.com
Opendeveloperplatform
Typesof Strategies - Hardware

22. Freemium
Giveusersfreeaccesstoyourproductandthensellthem
premiumfeaturesoradditionalusage.
Typesof Strategies- Freemium

23. Typesof Strategies - Freemium
ExamplesofFreemium
PricingPlans:
15GBFree
100GB-$1.99

24. Typesof Strategies - Freemium
ExamplesofFreemium
Teammessagingapp
Freewith10.000searchablemsgs
5Integrations
Nextplanis$8/User

25. Typesof Strategies - Freemium
ExamplesofFreemium
Free
Crystals(virtualcurrency)thatare
soldinpackagesfrom$1-$99USD

26. Typesof Strategies - Freemium
ExamplesofFreemium
Plansavailable:
Basic: Free
Plus:$20
Premium:$35

27. Freemiumisgreatforattractingnewusersbut…
Typesof Strategies - Freemium
Itcanbeveryexpensivetosupportalargeamountoffreeusers,soitisimportant
thatyoufindawaytoturnfreecustomersintohappypayingcustomers.
Conversionrateiscritical

28. Payperdownload
Simpleandstraight forwardbutcanleadloweradoptionrates.
Altosadventureisanincrediblegame,
andyoupayonceandgetthefull
experience.
Developerhaslittlecostoncetheappis
inthestore.
Typesof Strategies - Paid download

29. LeadGeneration
Sendpotentialcustomerstoothercompanies
Payperleadthatcompletedaction(CPA)
Mintusersyourfinancedatato
recommendtherightproducts.
Typesof Strategies - Paid download

30. AdvertisingModel
Contentsites, games,videoplatforms,socialnetworks.
Typesof Strategies - AdSupported

31. AdNetworks
Display Mobile
Premium (5M Min) Niche
Typesof Strategies - AdSupported

32. Your Site
Drivetrafficthoughyourownedchannels
*
Youcanalsoleverageinfluencerswith existingaudiences.
Typesof Strategies - AdSupported

33. Companiesusemorethanonestrategy
Pinterestisagreatexamplewithimpressionbasedadsandbuy
nowbutton.

34. Yourmonetizationmightchangelateron.
Youmightfindacomponentofyourbusinessthatcangeneratemore
revenue.

35. TheEnd.
Questions?