They have their own opinions expressed by business partners.
If you are the founder or CEO of a tech startup or a business represented by a digital product, as a business, first and most importantly, you know that any business should be profitable. Otherwise, it will not just survive.
I have observed how many stakeholders believe that attracting a large -scale user base should come before users should come before asking for the software they offer. How do I know? I thought like this when I launched my first product, and after numerous examples of consumer plans, I began to consider this style.
Related: 9 Side Histles to Make Money
Consumer counting vs. Counting Profit
Product Analytics is the basis, and the active active from time to time of your digital solution is really important. Consumers are Life Blood: They bring money through their actions (or non -practical, sometimes). However, the basic question is: Do They bring it in?
Being many consumers does not have much profit automatically. Your product unit economics should be based on the fact that profit from a consumer should exceed the cost of acquiring this user. This is exactly the way that leads to a sustainable business model.
If we exclude revenue from direct sales of goods (services) through digital channels, the only way to achieve this goal becomes Monitization. There are no reasonable reasons to postpone it.
Four benefits of preferring minetization at the beginning
Instead of paying full attention to the number and quantitative methods of users to attract them, consider how you are going to transform them especially into customers who pay them.
The purpose of this purpose, depends on many variables, I suggest increasing your technical project budget from the beginning so it is sufficient for the implementation of minatization from day one. And there are four reasons.
1. You only focus on the fact that consumers get important
Once, our team worked with the start of welfare, which introduced the minimum viable product (MVP) platform with the subscription model from the beginning. Instead of chasing user numbers, they focused on providing premium features that solved real user needs. There was a lot of effort, but together we were able to provide an experience that made the purchase.
This approach left us no choice but to provide him with him and to do it in such a way that he was not doing competitors, or maybe no one was yet. In just six months, he endorsed his products and earned permanent income, so that he could re -invest in development and grow rapidly.
In other words, you will naturally focus on supplying the original value. If you want to charge for your product, you have to make it valuable to consumers. On the contrary, if you want to make it worth consumers, you have to charge for your product.
2. You get operational funds for the project
The expiry of cash can cost everything literally. The above case explains: The customer can initially save a fifth of his budget and the risk of losing 50 % later, which is caught in a permanent MVP phase. Instead, the profitable profit in the early stages was used for operational requirements, which allow for growth.
Don’t add a clear bonus here: You not only win this moment but also avoid the costs of it. You need to clearly understand what and how you will enforce it, where your technical products will be in the architecture architecture, and will take care of the UX/UI design.
Even if you resolve this issue later, any change after the release will require more financial investment. During the discovery phase, a well -thinking strategy of monetization will help you already tackle it.
3. You confirm this idea by willingness to pay users
When you develop and launch any software project, it is certainly impossible to leave the IDEA, Idea verification phase. This product approach is based on itself to release less in a short time and collect feedback immediately. But what will happen if the willingness to pay for consumers is another way to verify a particular feature?
I touched the topic of expanding the budget, however, smart use of existing resources is also essential, especially when designing MVP. Instead of investing the same dollar in multiple features with uncertain profits, from the beginning, the budget can establish a more reliable development strategy, integrating the minetization.
Depending on the results, you will be able to make data-driven decisions and prioritize the project’s scope-converting ideas into a viable strategy for support through the number of concrete.
Related: The 3 secrets of starting a small business side hustle that make your day job a run for his money, according to people who did so – and earned millions.
4. You educate users for future loyalty with products
Current trends show that the so -called “premium” users really look for immunity: they literally demand the environment for a valuable online experience (General Z has grown up!). Communities around the web and mobile products are a reality today. It is important to understand that when you connect with a well -made monetization strategy, you have Trump Cards.
When you start earning the earliest money, even with MVP, you can lay the foundation for the basis of a loyal user. Although the product may still be in development, making a well -defined value suggestion can attract users who appreciate its ability. They are willing to invest early and have some expectations, which enables you to get high quality feedback.
Payment, in some way, has the extent of the entry that ensures the results – remember the grinder, headspace and spots. And about ‘When I Start Manitation …’ About: If your app, service or tool is fully free and needed sudden payment, do you think what will happen in this day’s retention rates?
The last words
You can rely on the number of users to measure success. However, consumers vote for their dollars, and what is important is tax and a solid, potentially beneficial profit and loss (P&L) statement.
Whether you are making a digital product with your team and launching, as an indie hacker, or partnership with an external development vendor, make sure that you do not make a mistake to ignore the monetization from the beginning.
