If you are running an online business or researching online marketing, you might hear a lot about “monetization.” You hear about how to do it, what methods are successful and you can meet your goals. However, if you are new to online marketing, this buzz word may be a little confusing to you.
When used in relating to a website or app, monetization simply refers to the act of making money from your website or other property. It’s not necessarily about ‘selling’ a product and could simply mean that you are earning revenue from your website without selling anything at all. In fact, your website or app is a perfect venue for marketing products, and there are countless strategies for doing it.
Here’s what you need to know about monetization and how you can use it to meet your business goals.
What You Can Monetize
Often, the term monetization is used in relation to a website. This makes sense, really, since your website is often your most valuable and visible online property. You probably spend a lot of time and resources promoting your website and helping it grow. If you are successful, you’ll have thousands (maybe even tens of thousands) of visitors to your website each month. If you’re very successful, you may get hundreds of thousands of visitors. That’s a huge audience, so it’s no surprise that advertisers would love to get in front of it.
However, your website is not the only property you can monetize. You can also monetize your app, your software or even your browser extension. If you have a mobile website in addition to a desktop one, , there are different monetization strategies for it and we’ll discuss those in a later blog.
You have many options for monetization, and it is worth exploring all of them so you can maximize your revenue potential and create a strong income stream for your company.
Options for Monetization
Deciding what to monetize is the easy part. Deciding how to monetize can be a bit more challenging. There are dozens of options for monetizing your website and other intellectual property.
Of course, the most popular option for monetization is to sell advertising. But even advertising presents multiple options. For example, you can sell display ads, text links, pop-up ads, flash ads, or video ads. You can decide what size you want those ads to be and where you want to display them. For example, you could integrate ads into your header, footer or sidebar, or into content.
Once you’ve selected your ad real estate, you have to decide how you want to charge for running ads in those locations. Will you sell them for a flat rate or will you charge by clicks or impressions? Each model presents its own advantages and disadvantages.
Another way of monetizing your site is with a search feed. Every time a visitor to your site conducts a search through that feed, you would earn a commission. The feed is a useful tool for your visitors and helps you generate revenue.
If you have an app or software, there are even more methods for monetizing. You can monetize apps and software by using a smart installer or creating a bundle. With smart installers, products and promotions are shown to users while they download your app or software. If they click on those links or buy the products, you earn revenue.
By creating a bundle, you can use the clout of your brand to encourage other companies to pay to bundle their app or software with yours. You can also earn money by getting a commission whenever someone buys the bundle.
Finally, you can sign up for affiliate marketing to monetize your website. With affiliate marketing, you don’t earn a fee when someone clicks on the ad. Instead, you earn a commission when someone buys a product after clicking on an ad that was seen on your website. You can write content promoting these products, or rely on display advertising to get results.
There are many other ways to monetize your online properties, but these are some of the most popular ones.
When you begin your monetization journey, you may become excited by all the options available. You may start signing up for as programs as you can, envisioning nothing but dollar signs. However, it can be easy to over monetize your site, and this can alienate your core audience. Putting too many ads or promotions on your site can make it seem spammy.
This will annoy visitors or make them feel like you don’t have anything of real value to offer. In trying to make extra money, make sure you don’t sacrifice your core business model.
Choose your monetization strategies wisely so that you can continue to offer value to your clients.
Don’t get overwhelmed by trying to decipher the monetization meaning. It’s really a simple concept, though it takes some trial and error to get right. Explore all your options, and do your research before deciding on the strategy that’s right for you. Then do the right testing to see which methods are getting you the best results.