YPP 5: Monetization Model
Your Pricing Project: Foundation Part Five
What is the Monetization Blueprint?
Intro: After imbibing hundreds of startup, investment, pricing, growth, SaaS, marketing, behavioural science, math and sales books, podcasts, videos and blog I thought to myself “there must be a pattern to this monetization game”. Why does it seem so unstructured?
There is a pattern. Here it is. An 8 step blueprint to monetize your startup, business or non profit.
Monetization Blueprint Explained:
Step 1. Monetization Psychology
Why you charge: Intrinsically where your company, product or service is positioned from a mindset perspective. Partner or Hire, Need or Wants.
Step 2. Monetization Orientation
Who you charge: Charging methodology levered directly towards all beneficial users or a particular type of user or just the economic buyer.
Step 3. Monetization Strategy
How you charge: On a value based or anchored metric such as cost plus or market pricing.
Step 4. Monetization Models
How you charge: Charging model and use relationship. Outright one off, perpetual, recurring.
Step 5. Monetization Packaging
What you charge: Solo product or service or packaged - selective or all you can eat bundles.
Step 6. Pricing Tactics
What you charge: Pricing tactics. Approaches including skimming, penetration, price differentiation, maximisation & auction.
Step 7. Monetization Channels
Where you charge: Avenues that deliver monetization. Digital or physical, directly and via 3rd parties.
Step 8. Monetization Execution
When you charge: Execution of monetary capture and collection, review and overall management of the monetization techniques. Pricing surveys, market data and feedback into monetisation plans.
Takeaway:
Follow this 8 step framework to build your Monetization Architecture. And you can get more on this and the 24 Laws of Monetization here.
