What’s the best way to monetize?

Jeff Haynie (CEO, co-founder at Appcelerator)
Five things I will do different for my next startup — Life Tips — Medium

The conundrum that a lot of companies face — in fact most of them — is the balance between reach and revenue (or in another way to frame it: the conflict between the two). The further you maximize reach the harder it is to scale revenue — or at the very least, more friction is introduced in capturing it.

What’s the best way to monetize?

Sachin Rekhi (Group Product Manager at LinkedIn)
Lessons Learned on the B2C2B Model | Sachin Rekhi

The main advantage of B2C2B [selling to individual employees as a path to an enterprise sale] compared to traditional top-down sales is that it can significantly reduce your customer cost of acquisition. The traditional B2B sales process requires large marketing budgets and long sales cycles. With B2C2B, you can gather detailed demographic and behavioral data on each of your end users that can help to significantly optimize and prioritize your up… (read more)

What’s the best way to monetize?

Boris Wertz (Founder of version one ventures)
Does free/freemium work in the enterprise? – Version One

While free rules the consumer world, it can be a different story in the enterprise: Offering an app/service for free can send the wrong message. Here, free can be equated with low quality. While viral growth and network effects exist in certain enterprise settings, network effects are typically more limited in a B2B environment compared with B2C. Free isn’t necessarily sustainable with B2B. Acquiring business users may prove too costly, forcing s… (read more)

What’s the best way to monetize?

Chris Savage (CEO @ Wistia)
“Monetize Backwards” to Build a SaaS Business That Lasts | Wistia Blog

At Wistia, we started with a paid plan only, and over the last eight years, we’ve progressively made the product more and more free. It’s counterintuitive, but constraining growth by not making our product free from the start has been one of the best decisions we’ve made.

What’s the best way to monetize?

David Jackson (Founder, Seeking Alpha)
Measurement is the key to success for content businesses; but measurement of what? | A Founder’s Notebook

If your main revenue stream is ads, you’ll optimize for page views, namely ad inventory. you’ll find that many levers are more important than content quality, such as titles, populist subjects appropriate for social sharing, and page-maximizing formats such as slide shows. But if your main revenue stream is paid subscriptions, then quality the key determinant of willingness to pay comes first.

What’s the best way to monetize?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Free Vs Paid – AVC

We’ve struggled with early stage investments in enterprise oriented web services. It’s much better, in my opinion, to go with the freemium model, give a version of the service away for free to all comers, get a lot of users, get good market feedback, then develop a premium version of the product/service for sale to enterprise customers. If your free version is popular with a lot of users, your customer base is the target for the upsell and you mi… (read more)

What’s the best way to monetize?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
The First Law Of Internet Physics – AVC

You can extract a higher average revenue per user (ARPU) from a paid model, but you get so many fewer users that it’s better to extract a lower ARPU with a free model and get many more users. The rule: many users * low arpu >>>> few users * high arpu. I guess a corollary is that you can implement a freemium model on top of a free model and turn some of your users into high ARPU customers, but they will always be a small portion of the total numbe… (read more)