If youβre building products for creators, youβll eventually need to generate revenue. VC money or not.
Get familiar with the most common monetization models π§΅π
Get familiar with the most common monetization models π§΅π
π€ Share of earnings
β Aligns incentives between creator & platform.
β Harder to monetize creators with low sales.
β Creates a graduation problem (successful creators are incentivized to leave).
β Platforms negotiate special contracts for top earners to solve this.
β Aligns incentives between creator & platform.
β Harder to monetize creators with low sales.
β Creates a graduation problem (successful creators are incentivized to leave).
β Platforms negotiate special contracts for top earners to solve this.
π Subscription
β Can earn more from creators with low sales.
β Successful creators keep more of their revenue.
β Doesn't create a graduation problem.
β Can leverage freemium or free trials.
β Can incentivize annual plans with discounts.
β Can earn more from creators with low sales.
β Successful creators keep more of their revenue.
β Doesn't create a graduation problem.
β Can leverage freemium or free trials.
β Can incentivize annual plans with discounts.
π Usage hybrid
β Option to charge for usage (e.g. contacts).
β Mix share of earnings, subscription, and usage to widen offering and add monetization layers.
β Bundle share of earnings with subscription add-ons.
β More complicated/confusing for creators.
β Option to charge for usage (e.g. contacts).
β Mix share of earnings, subscription, and usage to widen offering and add monetization layers.
β Bundle share of earnings with subscription add-ons.
β More complicated/confusing for creators.
Keep in mind:
Your model exists in a wider system that includes your market, acquisition strategy, and product strategyβand it must align with each of them.
Donβt create your model in a silo.
Your model exists in a wider system that includes your market, acquisition strategy, and product strategyβand it must align with each of them.
Donβt create your model in a silo.
β’ β’ β’
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