Best thinking around monetization...

[Smith]

Hi everyone, I'm finding there are two schools of thought when it comes to monetization:

School 1: Focus on one monetization channel and don't spread your focus too thin.
School 2: Capture all available revenue through all monetization channels and don't leave money on the table.

And I'm sure there are plenty of in-between scenarios too.

Situation:

I'm trying to max out two existing sites. One is currently info/subscription and the other is referral. But, I'm completely open to flipping monetization on its head, adding new channels, replacing old channels, etc. Basically, open to doing whatever opens the floodgates.

I obviously tried searching the internet for a bit of inspiration and quickly learned that searching "best monetization models" or "how to assess monetization options" etc is completely useless. Every 'day-one-guru' has an article or video on this topic and they (usually) don't have a clue.

So, does anyone have any first-hand experience with (1) credible resources/gurus that discuss this, (2) obvious BuSu threads I'm missing, or (3) groups (free OR paid) where this is one of the central themes discussed?

Or, does anyone have a personal framework or approach that they use to think through monetization with their sites?

Thanks for any feedback or comments!

 

[CCarter]

What did you think of Day 9 of the DSCC: Monetization?

 

[Smith]

Thank you. I am re-reading and really digging into it now.

What did you think of Day 9 of the DSCC: Monetization?

Based on what you shared, I’m considering multiple “What NOT to do” steps.

But… I think (huge emphasis on think) I’m approaching it in a non-cannibalizing manner.

Basically, I’m looking at adding affiliates and advertisements to different content sections of the site where existing content doesn’t result in ecomm conversions. Then reinvest that revenue into more conversion content and improving the product offering.

So I'm trying to get a handle on how to best build/roll out ads and affiliates in terms of tactics and pricing, without cannibalizing existing ecomm revenue.

 

[CCarter]

I’m looking at adding affiliates and advertisements to different content sections of the site where existing content doesn’t result in ecomm conversions.

Toys-R-Us once put Google Adsense on their website. Mind you they were selling toys. Does that really sound like a smart idea? Advertising your competitors within the pages of your site that are supposed to convince your audience to buy from your eCommerce brand?

All that effort to get people on your site and you are going to send them away to your competition?

You don't have to squeeze every penny out of each visit. People will come back just because your site didn't bombard them with ADs, pop-ups, and an onslaught of ways to make money off of them.

It's like going to the mall and you have to pass those kiosks trying to sell anyone and everyone anything. I'm not interested. Those bad experiences add up until you find another mall that doesn't allow that type of kiosk. A better experience which results in people preferring the newer experience.

But this depends on if you are building long term brands, or run some ridiculous named website like JoesShoeShineAndTruckingService.com.

Do you want repeat visitors? Are they more valuable than just a quick penny? For eCommerce I would say yes.

 

[Smith]

Toys-R-Us once put Google Adsense on their website. Mind you they were selling toys. Does that really sound like a smart idea?

No. Not as an established business with clear sales and marketing channels and products.

But... What if they were a new business, still trying to find product-market fit, looking to subsidize growth through diversified revenue streams? Could it make sense then? (Not Adsense but what about curated affiliate relationships?)

For context:

I’m thinking of a mini-directory for each city that the site covers (each city has its own silo of content), basically five companies/service providers for each city in parallel (not competing) niches, which visitors will be looking for anyway. The idea is to roll out a directory across 50 cities x 5 service providers x monthly fee to subsidize further investment into the site. Not database style, more advertorial.

And yes, I’m also thinking about Ads on certain high traffic low conversion articles. But I hear what you’re saying about mall vendors… I should strive to be the high-end store people want to come back to, rather than the discount store they only ever visit when there is no other choice.

The reason I’m even looking into this is because of an interview I heard with the WPBeginner founder… single blog that he rolled into a portfolio of WP-related businesses doing +100mm per year. He said in the beginning he was focused on getting cash flow from wherever he could. I’m taking this sort of thinking with a grain of salt. But it has got me thinking of where I am missing opportunities to generate more revenue in order to reinvest and grow faster.

But this depends on if you are building long term brands, or run some ridiculous named website like JoesShoeShineAndTruckingService.com.

Yeah, I'm striving to turn this into a long-term business and trying to maintain a 10-year outlook when making decisions.

So, maybe this just reinforces ignoring everything else and optimizing existing channels/products until they throw off enough cash to meet my reinvestment goals.