Skip to main content

Consider Monetizing Third-Party Beneficiaries Along a User’s Journey

An entrepreneur recently asked me how to monetize her app. She’s made great progress building and marketing her app. In fact, she’s been asked to do several interviews and has been invited to conferences all over. Next, she’s seeking investment to support growth, but has few ideas on monetization. Given specific challenges, she could consider monetizing based on third-parties.

Some background: the entrepreneur’s app empowers users to reach long-term safety and security. Since app launch, she’s ridden an impressive wave of press and publicity. Her app is cause-related, and given the most common user demographic, users are not financially stable. Meanwhile, as a for-profit company, asking for donations to support app development and her cause has been troublesome.

The app helps users navigate the long process getting from “low-point” to “high-point”. Because her target users have little disposable income, charging users will be a major deterrent and possibly dilute the power of her cause.

The entrepreneur could consider monetizing the steps along the user journey by considering what third-parties could benefit from reaching the user and by supporting the cause. Perhaps like...
A gamification-like strategy, where company-sponsored rewards (i.e. discounts towards food, clothing, etc.) are earned when users complete specific educational tasks. This can motivate users to stay on track and supported throughout their journeys towards the high-point. 
The entrepreneur can monetize based on reward redemption or sponsorship careful not to dilute sponsorship dollars for the sake of revenue. Meanwhile, sponsoring companies will be able to market their products and services, while also supporting a positive cause.
There are many ways to monetize popular apps despite hurdles – low income users, fears of cause/ value dilution, user privacy, etc. In this entrepreneur’s case, consider not only the target users, but also what third-parties can benefit along a user’s journey.

Comments

Popular posts from this blog

You Make Time for What (and Who) Matters

I’ve always been a big proponent that you make time for the things and people that matter. Sounds simple, right? Then, why do so many not implement this better in their lives? Let me take a moment to recognize this more explicitly.
I touched on Laura Vanderkam’s TED Talk “How to Gain Control of Your Free Time” in last week’s post. In it, she shares a story of a woman who had a leak in her home. Coordinating with plumbers, and getting everything resolved, the woman estimated that it probably took seven hours of attention. That’s seven hours of “stuff” the woman hadn’t planned on doing. If you were to ask her (or most anyone) to find seven hours in the week before, she’d have told you, “heck, no, I don’t have seven hours. I’m busy!”
I was thinking of Laura’s talk in conjunction with Jacob Christensen’s How Will You Measure Your Life. Specifically, I’m aligning “making time” with Christensen’s Resources-Processes-Priorities framework. We make (process) time (resources) for the things th…

Vertical SaaS? Horizontal SaaS? It’s All News to Me

Not sure why, but I have only recently heard of a term called “Vertical SaaS”. Okay, there’s also “Horizontal SaaS”, too. Based on some light research, looks like vertical SaaS is also a growing trend and the number of companies fewer than horizontal SaaS providers.
Vertical SaaS borrows its moniker from the concept of vertical integration whereby there is more control over a supply chain from raw materials to point-of-sale. Here, vertical SaaS companies focus on a niche market (industry) offering a solution that enables more process control.
Horizontal SaaS providers get really good at a particular offering, and widen their market to reach scale. Their focus is on breadth of market, and thus, its sales and marketing strategies can require more resources.
Many vertical SaaS companies (such as Veeva Systems, Guidewire, Fleetmatics) are doing well usurping legacy systems of traditionally slow-tech-adoption industries. Here, vertical companies develop a best-of-breed product, and focu…

Leadership Take-Aways from Two of NCAA’s Most Successful Coaches

On my recent Delta flight, I read an interesting leadership article in Delta’s Sky magazine – the feature piece being an interview of two of the NCAA’s most successful coaches – Coach MikeKrzyzewski (Coach “K”) of Duke’s men’s basketball team and Coach Urban Meyer of Ohio State football with five and three national championships, respectively.
Given these two coaches’ storied careers, their leadership has incredible sustainability. Here are my take-aways from the article: Both coaches took leave of absences in their careers due to medical concerns. Their successes cultivated deeper motivations to win exacting significant physical, mental, social, and emotional tolls. After stepping away, however, each returned to coaching posts to continue winning ways, but implemented mechanisms and understanding to keep themselves in check. Take-away: To operate in peak form like their respective teams, leaders, too, need to ensure self-maintenance.The interviewer asked the coaches about social medi…