Monetization Models


There are so many free things online nowadays that it is crucial to think and design your monetization model prior to developing any digital product. In other words,

“How are you gonna make money off of your digital product?”

Even though it seems like an easy question, it requires that the business or entrepreneur who is developing the digital product reevaluates its monetization model. You may have come up with the best product in the world, but if you don’t know how to sell it, you will not succeed.

 

What is a monetization model?

It is how you are going to charge for the use or sale of your digital product. If your digital product sells an experience or a service, it’s crucial to define the monetization model before developing the product.

 

Characteristics

  • What used to be a paid service now it’s free
  • The digital environment changes all the paradigms of the offline world, including the way you charge for things
  • There is a digital media revolution, so a monetization model is key for your project to survive in the next 10 years.

 

Some classic examples of online monetization models

  • Subscription
  • Freemium Ads
  • Paywall
  • Affiliate Marketing
  • Internal Positioning