The last 3 posts have talked about specific ways you can monetize yourself: by selling your time and expertise, by selling your expertise directly, and by giving your expertise away. But in actuality, these categories are not so clear-cut, and the applications get a bit messier. So I thought it would be helpful to look at an example of someone trying to plan out a monetization mix.
- Jargon Alert: in marketing, a “mix” is the list of things that you’re going to do for a particular purpose. So a product mix is the products you intend to sell; a promotional mix indicates how much of your budget is going towards TV ads, how much towards radio ads, and so on. In this case, a monetization mix is a list of which monetization methods you wish to use, and to what extent you intend to use them.
Case Study: Andrea the Accountant
Andrea is in her mid-20s, with a bachelor’s degree and a few years of work experience. She’s determined that, although jobs have their uses under certain circumstances, she doesn’t want to have a job as a long-term solution; her independent and creative spirit will be happier without a boss, and she feels she can provide more and better value to the world by sharing her expertise directly.
Andrea has an interest in personal finance, and a talent for organization and practicality. Over the last few years she’s done a lot of research on budgeting, investing, and getting out of debt. From what she’s learned, she’s created a few spreadsheets to help keep an eye on her family’s finances. Lately she’s found that she has enough knowledge and information to be able to help others out: she’s taught college friends about debt management techniques, and helped her grandmother create a monthly budget.
Andrea’s Monetization Mix
Sell your time
Although Andrea doesn’t want a job long-term, she has bills to pay right now, and she doesn’t want to have to worry about whether or not her business will be able to support her instantly. She calculates that she needs to bring in $900/month to supplement her husband’s income and keep the family budget running smoothly, so she’s going to get a part-time job while her business is getting started.
She also is going to sell her services as a consultant to anyone who wants help with setting up a budget or making a financial management plan. Because she wants to be affordable to those who need help, and because she doesn’t have a lot of experience as a consultant, she decides to charge $25/hour.
Sell Your Expertise
Andrea’s done a lot of reading about personal finance, and she has noticed that some books on personal finance are too theory-oriented, with not enough information on how to actually use those theories.
She’s written an e-book with practical tips on how to actually track your expenses and calculate your cash flow. It includes example categories of spending, ideas on how to figure out how much you’re spending in each category, and the equations you need to do the necessary financial calculations. It also includes a link to a spreadsheet that Andrea made, that will do the calculations for you. She plans to sell this ebook, but she hasn’t decided on the price yet.
Share Your Expertise For Free
Andrea still has student loan payments, and remembers how hard it is to manage your money when you’re not sure what to do. So she wants to make sure that she’s providing free resources as well. She’s going to set up a website and a blog, where she can provide information on personal finance, and keep it up-to-date with whatever she finds during the week.
Since the goal is to create a free resource, Andrea doesn’t want to charge for access. Instead, she’ll monetize her website through ads and affiliate programs. Companies that want to reach personal-finance audiences will pay Andrea to advertise on her site (she’ll weed out the ones that she doesn’t want to be associated with). When someone clicks on those ads, Andrea will get paid. Products that are particularly good, Andrea will review and recommend. She’ll set up an affiliate program with those products, and whenever they’re sold, Andrea will get a share of the money.
A Harmonious Mix
Notice that none of Andrea’s monetization methods is operating in isolation, but that they all support each other:
- Her website is easy to find, and a free resource for those who want help with their finances. It helps Andrea’s customers feel comfortable with her before they purchase: they know that she’s competent, and they know what kind of advice they’ll be getting. With ads and affiliate programs, it’s also a source of revenue.
- Her ebook is a way for Andrea’s customers to get a little more information than is on the website, without having to go “all the way” and hire her as a consultant. It builds on the information found on the website, and again establishes her competence in the minds of anyone who reads it. It provides another way to monetize the website, and it helps her reach potential consulting customers. She can price it medium-high ($5-$10) to maximize revenue out of it, or she can price it very low ($.99) if she wants to use the ebook primarily as a marketing tool for her consulting.
- Her consulting service gives Andrea with a way to provide personalized, timely information to her customers. It lets her give a boost to people who have read the ebook but still need a little more help. It also gives her another way to monetize the website, and it lets her practice her financial management skills. Although this is owning a job, because she has to spend time to get money, what she has to spend time on is
- helping people
- working with money, and
- organizing things
— three things she loves to do.
Also notice that Andrea can add other monetization methods as she has time, resources, or desire to do so. As interest grows in her services, she could set up a class on personal finances at the local library or community college. She could start creating a podcast to complement her blog. If she gets enough traffic, a publisher may approach her with a book deal. She might want to make videos on personal finance: she could post them for free on YouTube, and sell them bundled on a DVD for anyone who’s interested. None of these are critical to start right now, but they leave Andrea plenty of room for development in the future.
Summary: Lessons Learned
You don’t have to pick a single method of monetization — in fact, a diversified income stream is better. And your monetization methods will usually work together in mutual support.
This list of options I gave is neither comprehensive nor exclusive. Use my ideas to get ideas of your own, and experiment with what works for you. My goal is not to make you try to fit into my pre-ordained categories, but to give you as many options as possible to express your creativity.