Monetising web 'things'
Discussion
it depends doesn't it?
if you are building a website with the intention of it being your sole income from the moment it goes live, then yes
if you are building it with a view to getting it established (in traffic terms) and then hope to monetise it, less so
also, what period is meant by long term? there could be new ways of monetising sites in X years from now that aren't on the radar yet
monetisation mechanisms are relatively few really - adverts on the site, sell something to site visitors, membership charges, selling of data collected, big traffic / community for a sale to someone that believes she can monetise that
sure, that is too simplistic: there are people that could write a thick book with small writing on each of them, but that is about it really isn't it
if you are building a website with the intention of it being your sole income from the moment it goes live, then yes
if you are building it with a view to getting it established (in traffic terms) and then hope to monetise it, less so
also, what period is meant by long term? there could be new ways of monetising sites in X years from now that aren't on the radar yet
monetisation mechanisms are relatively few really - adverts on the site, sell something to site visitors, membership charges, selling of data collected, big traffic / community for a sale to someone that believes she can monetise that
sure, that is too simplistic: there are people that could write a thick book with small writing on each of them, but that is about it really isn't it
I have a similar problem I am wrestling with that might help your thinking.
Company A import and sell a huge portfolio to hundreds of resellers but no one reseller takes the entire portfolio hence the public cannot see all company A`s products on one retail website.
I have offered to be the reseller operating a site just for them, paid for by them, only selling their products but untraceable and my company buys the stock and sells the stock.
Issue is they have an option to buy the site at any time but at what cost, they have paid for it but don't own it. I am trying to agree a multiple that works for both of us in the knowledge that if they took it themselves in the future the margin would be huge as its importer to end user.
Company A import and sell a huge portfolio to hundreds of resellers but no one reseller takes the entire portfolio hence the public cannot see all company A`s products on one retail website.
I have offered to be the reseller operating a site just for them, paid for by them, only selling their products but untraceable and my company buys the stock and sells the stock.
Issue is they have an option to buy the site at any time but at what cost, they have paid for it but don't own it. I am trying to agree a multiple that works for both of us in the knowledge that if they took it themselves in the future the margin would be huge as its importer to end user.
For me I would say it depends on whether the success of your venture hinges on scale. If you need X amount of people going through your website, using your product, downloading, etc then monetize once you reach that level.
If you need money to reach that level then you'll need to gather analytics to show rising growth to take to investors.
If you don't require scale, then use the Lean Startup methodology to experiment with different monetisation strategies early on.
If you need money to reach that level then you'll need to gather analytics to show rising growth to take to investors.
If you don't require scale, then use the Lean Startup methodology to experiment with different monetisation strategies early on.
V8mate said:
Is it important to know how an idea for a website could be monetised in the longer term before you create it, or is it ok to 'just do it' and ponder on its earning capabilities later?
(On the assumption that you aren't creating it just for lols)
You're assuming it's possible to know in advance if a website can be monetised - lots of people try very hard at this and get it wrong (On the assumption that you aren't creating it just for lols)

If you're going to enjoy it, finish it, fill a need then go for it,
If you think it might make a lot of money they go for it,
You can't win if you don't play!
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