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Successful monetization is about matching Price to Value. Sharing some lessons from my operating and investing experience via @businessinsider: https://bit.ly/3mCmRQv
A thread
(and hopefully more 
for you!)
A thread
(and hopefully more for you!)
Creating product value and business value aren’t mutually exclusive — to maximize revenue potential, prioritize your roadmap based on solving clear pain points for customers and capturing their willingness to pay.
Want more proof? @ProfitWell studied >500 SaaS companies - found that a 1% improvement in Monetization had 4x benefit vs Acquisition in building business value
Lesson 1: Know who you're building for - segment users by what they value and what they are willing to pay. @Uber used smart segmentation. Low WTP? Use Uber Pool - will likely take longer, but will be cheapest price. Faster ride? Nicer car? Sure, but requires higher WTP.
Also, value does not automatically translate to perceived value! Avoid a laundry list of features that users don’t understand/need. Try streamlining number of features offered and increasing the price. Get more from reading #MonetizingInnovation book
Lesson 2: Balance sticks & carrots to maximize revenue. Sticks are core utility of the product, or value metric, and come with a quota limit. Carrots represent premium features — something users must upgrade to obtain. The two levers work together to drive conversion & expansion.
Picking the right stick requires alignment. For @CartaInc, # of shareholders is a more effective stick than # of admin seats. New shareholders grow faster and drive complexity. Carta manages that complexity and gets paid for it 
Lesson 3: Improve monetization with predictive data. Personalization meets users where they are. My teams built propensity models to see which variables drove upgrades/renewals. We segmented users based on propensity score and personalized product & marketing accordingly.
By better matching price to (perceived) value, you’re less likely to leave money on the table. Focus on building value for your customers, but also being compensated appropriately for that value. You earned it! 
