Presented by Karen Porter UM School of Business Administration & ImpactOnlineMarketing.com Intro to Online Monetization Presented by Karen Porter Department of Management & Marketing School of Business Administration The University of Montana

7 Main Ways to Monetize Display advertising Lead generation Affiliate marketing Google Adsense Subscriptions/Memberships Webinars Online sales Your own physical or digital products Someone else’s products (buy wholesale/sell retail) Drop-shipping

Display Advertising Selling banner ads on your website or blog Best for sites with lots of traffic Minimum 20,000 visitors per month Better is 50,000 – 100,000 visitors per month MAY work on sites with less traffic is highly targeted and visitors are responsive Banner ads best for branding/overall awareness Not good if advertiser is expecting high click-thru Example: Make it Missoula

Lead Generation Request info from site visitors Sell those leads to other sites / businesses Or, use those leads for yourself Best used by sites with good traffic volume Self-generated or CPA offers

Affiliate Marketing Digital products Generally pays about 50% -- good pay! Good source for digital products (ebooks and software) is Clickbank.com Physical products Pays much less – generally about 4 – 10% Amazon.com (the big kahuna) CommissionJunction.com (another big source) Independents (Walmart, Target, Cabela’s, etc.) review.toptenreviews.com/ review.toptenreviews.com/

Affiliate Marketing– cont. 2 Can be an affiliate even without a website Promote via Facebook, your own list, etc. Use uniquely coded hyperlinks Your referrals are tracked and commissions paid on a specified basis Once per month Once per quarter Whenever you reach a specified level of sales Be sure to read terms and conditions Some require you to get paid via PayPal Getting paid by check generally some with fees

Affiliate Marketing– cont. 3 YOU can have your own affiliate program Increase your sales Incentivize others to promote your products Grow your sales with their lists / contacts You determine parameters Programs options Some shopping carts come with aff program options Many options for separate affiliate programs that can be tied to your products

Google Adsense Google Adwords ads placed on your site Need a good deal of traffic to make good $ Must not be an obvious “Adsense site” Apply at Google.com/adsense You choose where ads are placed You can prevent competitors from getting ads onto your site Adsense can be applied to YouTube too

Subscriptions / Memberships Best for those possessing in-demand expertise or for a popular service / software Example: Offline Renegades Example: PicMonkey.com Sweet spots are between $ $29.95 / mo. “Micro-memberships” less than $5.00 / mo. Ideal to already have a sizable following

Webinars Best for those possessing in-demand expertise or knowledge Can hold your own webinars Often start with free webinars Sell affiliate products Upsell to a paid webinar (or webinar series) after Upsell a membership program Be a guest-speaker on someone else’s webinar They bring their followers – you split the sales You host a guest You bring your followers, split guest’s product sales

Online Store Three main types Sell your own products Retail Wholesale Both Sell someone else’s products Buy at wholesale – sell at retail Drop-shipping

Selling Your Own Products Best if you manufacture or hand-craft specific items Sell at retail Highest profit Sell at wholesale Less profits, but more items sold (selling in bulk) “Standard” mark-ups Wholesale price => 3 x cost of materials to create Retail price => 2 x (or more) of wholesale

Selling Your Own Products Best if you manufacture or hand- craft specific items Sell at retail Highest profit Sell at wholesale Less profits, but more items sold (selling in bulk) “Standard” mark-ups Wholesale price => 3 x cost of materials to create Retail price => 2 x (or more) of wholesale

Selling Your Own Physical Products Best if you manufacture or hand-craft specific items Sell at retail Highest profit Sell at wholesale Less profits, but more items sold (selling in bulk) “Standard” mark-ups Wholesale price => 3 x cost of materials to create Retail price => 2 x (or more) of wholesale

Selling Your Own Digital Products Best for those with expertise OR for those who partner with someone with expertise Sell at retail Highest profit Pricing depends on what market paying Prices ending in ‘7’ tend to do best Selling via affiliates 50% affiliate commission generally expected Leverages lists / connections of others to promote sales of your product

Selling Someone Else’s Products – Marking Up from Wholesale When you don’t have your own products This is most people! Buy at wholesale prices Sell at retail prices (min. 2x wholesale price) Important to research what it is that people are willing to buy Why should they buy from you? Who will your competitors be?

Selling Someone Else’s Products – Drop Shipping When you don’t have your own products – another way to sell Drop-shipping You provide storefront only No inventory to buy, stock, or ship You collect orders at retail prices Pay higher than wholesale (usually about +50%) Someone else fulfills products Great (but pricey) directory: WholesaleBrands.com