Today's social media startups are finding unique ways of generating revenue from the very beginning.
Here are a few of the revenue models that they're using and how you can apply them to your company.
Description: This business model works by offering a basic service for free, while charging for a premium service with advanced features to paying members.
Examples of the Freemium Model: User Voice, Flickr, Vimeo, Linked In, and Poll Daddy The biggest challenge for businesses using the freemium model is figuring how much to give away for free so that users will still need and want to upgrade to a paying plan.
How are organizations striking the balance between new initiatives and cost control?
Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Is Dev Ops helping organizations reduce costs and time-to-market for software releases? Find out in this Information Week and Interop ITX infographic on the state of Dev Ops in 2017.
Jun Loayza is the President of Social Media Marketing.com, a company focused on building social media campaigns for companies.
We decided that coming together and creating a long term relationship with the people we were helping would be better for our business in the long run.
We have enough content and features that every month will be an exciting new journey. We took the features that we liked the best and least from popular internet marketing strategies for membership sites, continuity programs, etc as well as different ways to run the membership software and found what was going to be the easiest for us to use and easiest for our members to digest 2.
I talk a lot more about this in an interview on Mixergy. What we had built was core features, so as we spoke with customers we began asking what would they pay for on our User Voice page. Examples of the Affiliate Model: Illuminated Mind, Shoe Money, DIY Themes Like businesses that rely on advertising, high traffic sites predictably have a much easier time making money using affiliate links than sites that are just starting out.
Once we had some premium features in place, we went back to those customers and began doing paid pilots to test out the service. High traffic means that even low conversion numbers can equal big bucks.
Examples of the Subscription Model: Label 2.0, Scrooge Strategy, Netflix I talked to Greg Rollett, the founder of Label 2.0, a marketing school for musicians that sells its services for a monthly membership fee.