How to Create a Website Step 6 Determine your Product requirements
When you create a website the question of your product requirements is directly tied to the question of your website monetization plans. At this stage you will need to ask yourself a few straight forward questions.
- Would you rather write content and get paid by advertisements?
- Would you rather sell subscriptions to access your knowledge on a topic.
- Do you want to sell human resources, man power or work for hire?
- Do you want to sell and ship a physical product?
- Do you want to sell affiliate / reseller services?
These are just a few of the myriad of options a web developer has to monetize their efforts. The key point of importance here is time. How much time are you able to invest into running your new business. It is this factor of time that makes a few of the choices most popular.
As most would expect, blogging with advertisement is one of the most popular examples. This is because it is a very casual commitment, requiring only inspiration, the ability to write and a knack to recognize hot trends in public interest. When you have the potential to offer 10 or more sponsor ads per site and 1 of those ads can earn thousands per month, it is simple to see why bloggers can and do earn upward of 6 figures in US dollars writing about what they love most.
In our findings the second most popular monetization tactic is subscription based access to blogger content. It is the natural order of things that subscription base models are second to advertisements. This is because most people that are getting on the internet are unknown and entering into a now extremely social environment. With a solid, unique and inspirational perspective and the correct search engine, social and marketing strategies, it doesn’t take long to get noticed and develop a following.
With the internet getting larger everyday it might appear that it would drown out your voice, but it is this growth and dense population that will lead to your ultimate success. It will be those people seeking and sharing ideas and opinions that will be the very heart of your success. Once you’ve created your wondrous idea and offer it for free to the world, they will be drawn to it like bees to honey. Nothing spreads faster than someone finding a resource that has inspired them.
When someone gets inspired, the average person tells 4 other people about their inspirational discovery. This is because people usually associate with like minded friends or associates and there is a high probability these friends will be equally inspired and also tell 4 people.
This process repeats in a chain reaction like a match to gasoline until all connecting like minded people have completely consumed your content. This is commonly referred to as a successful viral marketing campaign and can continue as you explore your inspiration to write content.
The amount of unique visitor traffic to the website is what large companies pay thousands to get access to. Believe it or not this is where the business model actually evolves just as quickly as it was born. This is because with all the additional traffic the blogger is seeing, there is a better monetization model to step into.
This is where special new inspirational articles are released within a premium subscription area of the website. Imagine for moment if your blog went from 10 unique visitors per month to 1,000,000. Even with paid advertising paying $1,000 per ad at 10 ads that is only $10,000 a month, compared to just getting 3% of $1,000,000 to subscribe for access. Another common understanding is that on even the worst campaigns human behavior usually achieves at least a 3% conversion rate. So in the previous example that is 30,000 new subscriptions a month.
What will you charge, 1 dollar or will it be 100 dollars. This is all done without shipping a product or even stepping away from your computer. This is just from the power of your inspiration and imagination.
In case you are wondering if you can have your cake and eat it too, the answer is yes you can have ads and paid subscriptions running at the same time. Although it is known that advertisements can effect customer confidence in a paid product if it appears the website requires monetization through means other than the product offering. Advertisements can also lead to marketing leaks as traffic leaves your site following a product they’ve seen in one of your website’s advertisements.
The 3rd model of monetization in our list is actually the 3rd phase and another possible evolution of the blogger model. When a popular website is attracting healthy traffic numbers, it is like clockwork that there is always those that want more than your current model has to offer. This is why it is important to calculate from your current success what an hour of your time is valued at. After all “time is money” and “money is time”.
Just take the total monthly earnings, multiplied by 12 divided by 2080. This is the total hours in a year based on an average 40 hour work week. Each individuals schedule may vary, but this is a good starting point. From this you will know the minimum you require to give specialized hourly one on one attention.
The 4th model of monetization involves physical products. You can carry these products on your premises or store and ship them from a warehouse. Another option is to drop ship it. This is where you are never actually shipped a product, but rather you are charged and it is shipped from a warehouse that maintains the inventory.
Another variation of this model is known as a white label product or service. A white label product or service is a product or service that is produced by another company and rebranded as your own. These products can be shipped from the warehouse like drop shipped services. The particulars may vary from one white label company to another.
The 5th model of monetization often doesn’t require a product, content or service of your own. These services are known as affiliate and reseller models.
Affiliate marketing as it is known is a performance-based marketing system, where the original company is offering financial incentives for all business referred to them. These referrals can pay you anywhere from 1% to 100+% of the product purchase price. Yes you did read that right 100+%. This was not a typo.
In a competitive monthly subscription based industry, there is a critical need to get customers in over their competitors. The gamble is that the customer will continue the subscription service beyond the initial purchase period the affiliate commission was paid on.
The popularity of affiliate based marketing comes from the turn key qualities and the ease it is to implement into your own natural content. It can be as simple as a link on a work or as grand as a complete website surrounding the topic. Once setup it is normally very hands off.
Reseller services tend to be electronic in nature. Such as selling cheap hosting and cheap domain names or ebooks. They often come pre-configured with a pre-built website. These websites come with control panels allowing you to login and customize your website and set your own products pricing.
Domain-Cheap.com will soon be offering customers the opportunity to create their own cheap domain names and cheap web hosting company just like Domain-Cheap.com. You will be allowed to offer all the products we carry and name your own prices. If you would like to be contacted when this program is launched. Please send us an email at Support@Domain-Cheap.com with subject line (Reseller program).
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If you are just joining this 30 step website tutorial series on how to create a website, you might like to start from the beginning How to Create a Website Step in 30 Steps..
These are just a few of the myriad of ways customers are monetizing their websites and blogs. If you would like more assistance on determining your product requirements, Please call us at 1.480.664.3700 or send us an email at Support@Domain-Cheap.com with subject line (Determining product requirements) with a brief description of your ideas and direction to create a website.
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