Monetizing Innovation

A monetization model is good only to the extent you can make it work. Assess factors like feasibility, difficulty of customer adoption, and scalability. Make sure you can measure the data necessary to enforce the pricing. In addition, you must be able to communicate the model easily to customers and partners. Don't exclude yourself from a particula

With few exceptions, companies do not examine which features are important to the customer, and which are only important to the inventor. They do not know whether the customer wants one flavor, or a choice of many. They do not know if the customer will pay, wants to pay once, or will subscribe.

The most successful product innovators we know start by determining what the customer values and what they are willing to pay, and then they design the products around these inputs and have a clear monetization strategy that they follow through with.

Market-Based Pricing: Auctions