revenue models & monetization strategies for early-stage social apps

Download Revenue Models & Monetization Strategies for Early-Stage Social Apps

Post on 18-May-2015




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The goal for most early stage companies should be to focus on building the product, not on optimizing to get the most money out of current traffic. Without a successful product and active users, a finely-tuned revenue model doesn't amount to much. In the long run, decisions that drive product growth and user engagement are what will drive more users, more user engagement, and ultimately more money. Dan uses the 80-20 rule to talk about how to split up time and evaluate revenue opportunities; in most cases, you can optimize your current revenue to 80% of its potential using 20% of your time.


  • 1. Monetization Strategies & Revenue ModelsDan GreenbergFounder, Sharethrough for Early-Stage Social Apps 7.8.2009

2. I have a small Facebook much money should I be making?If your CPMs are in the $2-3 range for 728x90 banners, youre already doing really well. Dont you have more important things to worry about, anyways? 3. Focus on consistency, not maximization. Putting out 20% effort making more money gets you 80% of the way there. You dont need complicated tools until youre big. If you want to make more money, you need to scale your product. More users, more user engagement = more money! Once can justify hiring a full time employee to manage monetization, then youre ready to start maximizing. Until then, focus on building your product & proving revenue models. 4. Create new revenue models for your apps. Finding a viable revenue model early helps you scale later on. The Virtuous Cycle: In the best case, you can make enough $ per user to justify buying more users for your apps with your revenue. If so, double down on marketing! Think about incremental revenue streams and monetization opportunities, not fine-tuning existing ones. 5. Create new advertising models for your apps. New Revenue Models. Virtual Currency (let your users give you money) Sometrics, Offerpal, Gambit, SuperRewards Video Integrations (make money when your users watch videos) Sharethrough, RockYou, VideoEgg In-App Interstitials (integrate an ad impression as part of the flow) Sharethrough, Cubics, Do it yourself Brand Takeoevers (pimp out your whole app with a brand campaign) Appsavvy, Direct relationships Sponsored Content (inject sponsored items into the app) Viximo, AdNectar Or..........Invent Your Own! 6. Measure ad revenue against user engagement.Make sure your ads arent stunting your growth. How? A/B test your invite rates, time on site, pageviews/visit, visits/month Cut out revenue streams that are hurting long term performance 7. Going Direct:Brand your apps into a niche that advertisers actually care about.Apps with well-defined user segments get premium CPMs. And they often get to work directly with brands and ad agencies, even if they dont have that much scale. Circle of Moms MesmoTV Advertisers dont care about advertising in fun quiz apps, they care about marketing to 30-40 year old soccer moms with time to spare. 8. Working with Partners:Choose a limited set of hands-on, trusted partners.Align yourself with the leaders in innovative social marketing. Pick a few to work closely with, and innovate with them. Some of our favorites: Sharethrough, Gambit, RockYou, Appsavvy, SocialCash, VideoEgg, Sometrics