Wednesday, January 14, 2015

Startup Monetization Strategies

Lately, I've been thinking about ways startups can generate profit and actually make money off an idea. I would argue, as well as many people, that the most important parts of a startup are the idea and team. As long as there is potential, a startup can figure out a way to make money. Nevertheless, monetization strategies seem quite important, and would serve founders well to consider what path to choose. Rather than stumble upon a strategy, there should be some rationale about how a startup will make money before too much time and money is committed to developing the idea.

From a day of pondering potential strategies, I've come up with a list:

- Product sales
- Advertising
- Commisions
- Subscribtions
- Pay as you use (Payu)
- Marketplace

A startup can be seen as a three dimensional object. Two dimensions consists of the idea and team, and the final dimension is profitability. This list is by no means exhaustive, just a day's worth of daydreaming about all the companies I have encountered so far; however, there are many ways to monetize a valuable service.

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