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This post is one of my Multi-Part Product Guide series that has been ranked on HackerNoon Daily TechBeat 🎉 Test Willingness To Pay & Create Monetizable Products.
Internet products often fail to monetize for various reasons. As a full-time product builder for almost 3 years, I've learned valuable lessons from my own failures and successes. Here are some tips I've used to monetize my products profitably:
You can't successfully monetize a product unless you know WHO you're solving the problem for and WHO you’re creating the solution for.
The consequences of not understanding your target market can seriously impact your revenue. For example:
If you are building Internet products, the first thing customers see is NOT the product itself, but the words you use to describe it.
A weak value proposition can lead to confusion, lack of interest, lack of conversion or, lack of sales.
Because customers simply don’t understand the benefits of your product or why it's worth their money.
This is why you need to craft a clear value proposition: A statement that clearly communicates what your product or service offers, how it solves customer problems, and why it's better than other alternatives in the market.
When you're building a new product, it's crucial to choose a viable revenue model that fits your target audience.
For example, the subscription-based model has been gaining popularity in the e-commerce and Direct-to-Consumer (DTC) industry.
It allows companies to generate a recurring revenue stream by offering customers access to their products or services through a “subscription box” plan.
But it's important to note that this model isn't suitable for every product category:
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