31 May ‘13
Money making techniques for startups
31 May ‘13
In: Business, Technology, / By: Chris Simental
I recently clicked through this deck, published by the Board of Innovation, about how startups can make money online. At Ripe, we often work with entrepreneurs looking to start a new online business and the discussion around monetization is always a big one.
One interesting point the deck makes right up front is: Asking “What revenue model should I use?” is the wrong question. “Why will people pay me?” is a better question.
It’s important to first understand why people are willing to part with their money, and the deck covers 17 reasons they do and shows examples of apps and websites that capitalize on these. Here are some of the ones I think are most important.
- People want to look professional
- People want to belong to a group, something bigger
- To experience and discover new things
- To communicate and connect
- To speed things up or increase convenience
- To be first or exclusive
- To take advantage of a special and/or time-sensitive deal
- To brag or show off
- To get deeper insights
At the end, the authors make the point that smart digital revenue models combine a selection of all these techniques and show an example of a site that uses 6 of the techniques right on a single page.
Here’s the deck for your enjoyment: