Imagine an ad less browsing experience made possible by the presence of a mirror image Adworld. Let’s begin with an inspection of constraints.
Tag: monetization
Why Startups hit a Cash Impasse after Growth
One of the major risks for startups is failing to (sufficiently) monetize. App developers and service providers have a variety of methods for generating revenues at their disposal, but depending on the market, competitor pricing, and customer need, struggle to generate sufficient revenue for growth or even maintenance.
A Systemic Problem with Sales Attribution
The issue (and systemic error) is that content providers, influencers, and pre-sales are not getting fairly compensated for purchases that they ultimately contributed to. The value of influence versus sales needs to be stripped down to it’s barest essentials and measured.
Background for this post:
- Chris Dixon: Why content sites are getting ripped off
- Fred Wilson: Affiliate Marketing Undervalues The Link
- Jonathan Mendez: The Market Forces Killing Display Advertising
Chris, Fred and Jonathan have spent some cycles digging into what I see now as a great opportunity for market disruption. Advertising as we know it is about to go through a pretty heavy shift. But it’s not only advertising which is about to flip, it’s also manufacturing, online stores, warehouses, drop shippers, customer service, and sales.
Here’s the revolution I see brewing in the relation between the Net, manufacturing, storing/delivery, and sales:
I can smell the opportunity. We need to shift the system so that the problem is reframed.
1) As a content creator and affiliate you would like to be compensated for downstream purchase actions directly or indirectly related to your link and commentary
2) Those downstream (as Liad stated below) have no financial incentive to change the status quo
3) To improve the analysis of downstream actions, whether they happen a day later or a few months later, real time data needs to be collected from sites/services which opt in to a Universal Tracker (protocol/standard).
4) Simple statistical models that correlate user purchase actions with multiple relevant product referrals can fairly distribute affiliate revenue.
5) Fully decoupled manufacturing processes from single brand drop shipping (Amazon and other big online brands, are ripe for disruption), will allow the market to fairly assess the value of an affiliate sale.
6) Quantization of sales influence, versus the various steps of design, manufacture, product warehousing, drop shipping, or other segments of product to consumer flow will be optimally rewarded to benefit not only the consumer, but all parties involved.
The preceding comments from AVC (my favorite blog hangout for a good reason).
Sustainable vs Explosive: Income, Revenue, & Growth
Media by You, Working for You
The Creation of Value
Can Your Concept Scale?
Numerous Advantages of Concepts that Scale
Beyond the decrease in cost associated with mass production, there is measurable advantage to having massive revenue. Even a small increase in efficiency can increase profits by a large margin. Having thousands or millions of customers requires a different approach when minimizing customer dissatisfaction (or maximizing customer satisfaction). Beyond the guessing game of new product offerings, with massive user bases, wide data sets can be collected to understand how and why users prefer your products or services (offering). Localized demand may be low, but global demand could be enormous for our offering. (more…)
Notional Framework for Monetization Web2010
Notional Framework Breaks the Problem Up
This framework is an extension of the ideas presented in Monetization for Web2010.
Social media provides the “real estate” for communications to happen. Whether social media is decentralized (ostatus, P2), or integrated by API and more centralized (twitter, facebook) the conversations are happening because people are connected. Without the backbone of social media this monetization would not be possible so they must be aportioned a piece of the revenue pie (20-30%?). (more…)
Monetization for Web2010
Robert Scoble Gives Away His Photos
Should We Give Our Best Away for Free?
For several months I’ve been persuading readers (preaching) to discover work that compliments their passions. My fear is that the process of monetizing detracts from our best message. Any truly great work, be it art, functional or a mix, that comes from the core of our being and needs to be passed on has great value (at least to ourselves). But the manner of trying to cost that, profit, or putting a price tag on our creations may tarnish the work. It’s a healthy fear to keep in mind, as it channels creative energies towards coming up with revenue streams that doesn’t sully our integrity, honesty, and genuine judgement. (more…)