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In business administration, monetization is the process by which a financial benefit can be achieved with an idea, a product or a service. Monetization plays an important role for founders of startups because it shows whether money can actually be made with the business idea. There are various business models on the World Wide Web for generating income with websites, for example with an online shop or as an affiliate.

Background [edit]

The commercial Internet has developed steadily since the late 1990s. Analogous to this development, the business models for monetization via the World Wide Web have also expanded.

Today, entrepreneurs can take advantage of many different opportunities to earn money with their business idea on the Internet. The enormous further development is based on the one hand on the evolution of payment systems and on the other hand in the increasing importance of the mobile Internet. An important milestone for monetization was the introduction of the iPhone in 2007.[1] as well as the subsequent expansion of the mobile network. Mobile Internet traffic now makes up over 60 percent of all Internet traffic.[2]

Business models [edit]

There are different ways to monetize an idea, a product or a website:

  • Display of advertising on your own website: A very simple method to monetize your own website is to include advertising banners. For this purpose, webmasters can, for example, participate in advertising programs such as Google Adsense. In this case, the advertisers receive money from the advertising platform for every click on a displayed ad or depending on a certain number of impressions.
  • Participation in affiliate programs: In this case, website operators can include selected advertising material or links on your website that lead to a commercial website. If the user buys a product there or if he generally carries out an action defined within the framework of the affiliate program, the “affiliate” receives remuneration.
  • Online shop: Anyone who wants to sell their own products or want to offer other products on the Internet as part of their business idea can start an online shop. This form of monetization is similar to a physical store, except that the store is purely virtual. However, some retailers also use a dual strategy for monetization with stationary and web-based trading.
  • Integration of advertising in your own YouTube channel: Anyone who uses their own YouTube channel can incorporate advertising videos into their own videos there. However, certain criteria must be met in order to monetize videos.[3]
  • Paid content: Magazines and newspapers in particular work with the paid content variant in order to monetize their content independently of advertisements. Users then have to pay money to read articles. In addition to subscription models, there are also payment models for individual access.

Limits [edit]

Monetization on the web reaches its limits as soon as paid content is not marked as such on websites. For example, so-called sponsored links must be marked. At the same time, it is advisable to add the rel = nofollow attribute so that Google does not interpret this link as webspam.

In addition, many influencers who test and recommend products on Instagram or other social media channels are suspected of “surreptitious advertising”. The same applies to product testers on YouTube who publish their own videos there.

References Edit]

  1. ↑ iPhone Retrieved on August 27, 2018
  2. ↑ Mobile's share of total Internet traffic will rise to over 60 percent in 2018 Accessed on August 27, 2018
  3. ↑ Criteria for the monetization of videos Retrieved on August 27, 2018