We’ve come across a number of website owners wanting to create significant revenues from their websites but approaching the task the wrong way. They’ve tried to solicit the revenue stream before the other parts were in place.
The concept was good, but the steps to monetisation were wrong.
For instance, one website product providing entertainment information wanted venues to subscribe up-front, and was having difficulty convincing venues to hop on board. Another providing information to a category of employment seekers wanted job placers to subscribe and advertisers to come aboard.
The models had great ideas behind them but the model chosen was not quite right.
Websites have four main components or opportunities for components...
And there’s a definite chronology to these that helps you develop your website faster, even though it might at first seem to delay revenues.
Content... is read by Consumers... and this attracts Providers... and Advertisers.
And it’s the latter one or two that can provide the revenues... at least in the beginning.
But it all starts with Content. Without compelling content that is differentiated from other competitive or substitute sites, your website risks being irrelevant.
Content should therefore be sourced, produced and provided as quickly as possible. The faster you have it, the faster natural and marketed searches will find and value that content.
That attracts the Content Consumers. These people will value your site. The more of them you get, the more your true asset grows... visitors.
So consider deferring fees for accessing the content. The easier it is to access, the easier it will be to ramp up your visitor numbers.
When your visitor numbers are up, you’ll start to see the monetisation opportunities emerge. Content providers will want to provide material. And they’ll pay for the privilege. Advertisers will want to advertise on your site.
And these will be the source of revenue of most importance.
Keep up the content, to keep up the visitors, and you’ll keep up the contributors and advertisers.
Down the track, though, something interesting will occur. It’ll be both the start of yet more revenues and the start of your vulnerability.
You’ll realise that Content Consumers are dependent on you, and you’ll be in a position to introduce fees for your content.
This will add an entirely new income stream to your website. But it’ll also be the moment a new competitor seizes the day and introduces a source of content that is a substitute to your own.
Balancing the provision of value with the opportunity for leverage will be a challenge. But that’s a nice challenge to have.
Stephen Johnson, Director, Strategy and Action
Author Resource:-
"http://www.strategyandaction.com.au
Stephen Johnson is the director of Strategy and Action. A marketing consultancy located in Springwood, QLD."
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