monetization
DESCRIPTION
Some simple words about monetization modelsTRANSCRIPT
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Agenda
Marketing funnel
Types of monetization
Key metrics of monetization
Monetization FAQ
Monetization model template
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Marketing funnel
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LTV>COCA
Potential audience
Attracted users/Leads
Active users
Paid users
Place
Promotion
Product
Price/MonetizationPlatform
Loca
lizati
on
Distribution channels
Releva
ncePR
, SM
M, V
IRAL
Offl
ine a
dver
tisin
g Online AdvertisingBrand pow
erSe
rvice
upda
tes
Valu
e for
use
r
Content Q&Q
Donate
AdmiumFr
eem
ium
Premium
Fun for user
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Types of monetization
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Premium – pay and use
Real goods – priceVirtual goods – value and usefulness for userContent- uniquenessServices – warrantyTechnology – innovativeness
1. Free of charge period – try&buy is premium2. Volume discount – subscribe
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Premium - pay and use
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Admium – use and see ad
Context advertising– Web (adwords)– Mobile (iAd, admob, airpush)
Partners program – reputation risks– Web
Offer wall – use instead Premium– Mobile (sponsor pay)
Product placement and media
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Admium – use and see ad
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Freemium – pay for get more
Sell additional options, time and comfort.Emotion purchasesSocial mechanics
1. Don’t be a hustler, be a friend2. Best way for mobile app monetization3. Good for fast growth a valuation 4. Conversion rate very enormously
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Freemium – pay for get more
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Donate – pay if you love it
Socially important projects– Wikipedia
B2G projectsCrowdsourcing
1. Not popular model in single mode.2. Work perfectly for niche product.
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Donate – pay if you love it
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Key metrics of monetization
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Key metrics of monetization
COCA - cost of customer aquisition,LTV – customer life time value, ARPU – average revenue per user, ARPPU – average revenue per paid user, ARPAU – average revenue per active user
1. If your LTV>COCA – you win the market!2. Before change monetization model think about
how to increase LTV and decrease COCA.3. Average revenue indicators good KPI.
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Monetization FAQ
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Monetization FAQ
Use maximum billing waysAll type of credit cards;
Digital money;
Payment systems;
Other types of billing
Use analytics softwarehttp://www.google.com/analytics/ - web
http://www.flurry.com/ - mobile
https://www.appannie.com/ - mobile
Use mathematic model for monetizationUse Excel.
Looking for the paterns.
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Monetization FAQ
Use CRM Your goal is personal monetization plan for all customers.
Find the hole Controle all part of marketing funnel.
Cheaper return the user than acquisition a new.
Monetization in MVPTest product value first.
Test monetization inmedently after product validation.
Change monetization while test all.
Do not conduct experiments immediately over the whole of audience.
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Monetization model template
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1Q2013 2Q2013 3Q2013 4Q2013 CommentsLeads 140 000 169 943 181 111 266 579Cost of lead 1,1$ 0,87$ 0,90$ 0,76$ Depend of brand power, advertising channels, etc
Lead from advertising 100 000 114 943 111 111 131 579 Depend from marketing budget and cost of leadLead from SEO 15 000 25 000 30 000 35 000 Depend from SEO budget and resource content.Lead from other activitys 25 000 30 000 40 000 100 000Registrations 126000 151249 166622 231924Percent from leads 90% 89% 92% 87% Depend from leads quality and method of registration Active users 12600 25080 37963 52086Active users from last period 0 12600 25080 37963Active users outflow from active, % 50% 45% 35% 30%Active users outflow from active 0 5670 8778 11389Active users inflow from registred, % 10% 12% 13% 11% How you count active user - come back during week?Active users inflow from registred 12600 18150 21661 25512Paid users 1260 2759 4556 5729Percent from active users 10% 11% 12% 11%ARPPU 12,00$ 18,00$ 22,00$ 26,00$ Turnover 15 120$ 49 658$ 100 222$ 148 965$
Cost of sale 3% 3% 3% 3% Billing commisionRevenue 14 666$ 48 168$ 97 215$ 144 496$
Royalty and other costs 8% 8% 8% 8% License paymentNet Revenue 13 493$ 44 315$ 89 438$ 132 936$ LTV 48,00$ 72,00$ 88,00$ 104,00$ Depend from Life Time. In this case 1 yearCOCA 79,37$ 66,72$ 55,66$ 85,19$ Current advertising budget/New paid user
DAYLY ARPAU 0,01$ 0,02$ 0,03$ 0,03$
