Startup to monetize startups

Author: Ury Smirnov. Category: Future services. Date:18.02.2010, 0:16.

Quite long time advertising considered as the main and almost the only way to monetize web2.0 startups. Internet services are now also trying to develop paid services, first of all, for corporate clients. In the future, I’m sure, advertising will increasingly give way to alternative ways of interaction between producers (sellers) and consumers.

In particular, in my opinion, in the future various forms of so-called reverse auctions will become much more common than it is today. In these auctions buyers and sellers change places: first fielding requests for wanted items, and the second attempt to satisfy them by offering more favorable prices and terms of delivery. These auctions will become not just a form of trade; they will enter into a new marketing tool, built on a basis other than today, the philosophy of the consumer and the manufacturer (seller). Today, manufacturers impose consumption models and manipulate opinion of the consumer. Tomorrow, consumers will “impose” their needs to producers.

One of the new forms of reverse auction can be implemented as a specialized internet service that helps owners of thematic sites and social networks to monetize their resources.

The idea is simple. In the world there are some people (and with the introduction of our service they will be more 🙂 ), who try to organize rationally their household and family budget. In the struggle against chaos and entropy they write a variety of lists including shopping lists. Not only committed or planned for today and tomorrow, but also the long-term for which they are still saving money. The latest list is of strategic importance for the seller: it can be used with certain amendments to predict the overall size of the market in the months or years and to identify the piece of the pie, for which his company is ready to struggle. With it, one can pre-enter his lineup in the future needs of the market (with certain amendments, of course) and properly configure the production and distribution network. Finally, with the help of service vendors will plan some almost guaranteed sales to users of the service.

So, in the simplest case the user leaves his list of pending purchases directly at the service. Not for exhibitionism but for discounts for the product / service he will receive, if the tender will be held on time and will be completed with the sale.

The term of its implementation is assigned to each query of the pending purchase as well as the required and desired parameters of goods (services). For example: color, size, price (or more precisely, the discount compared to the cost of goods in the buyer’s city), basic and advanced features, options, reliability, service availability, region of origin, unique ideas and wishes of the customer, etc.

Whether list will be public or private doesn’t matter. But the information about each pending purchase and its options goes immediately to all producers of goods, accredited at the service (for a fee, of course 🙂 ).

Each manufacturer will decide for himself whether to participate in the tender, when his term. Rather, in most cases it will be to solve by the enterprise information system of manufacturer – in automatic mode according to a predetermined algorithm. All non-standard consumer demands will be rescued from the general flow and analyzed by specialists “manually”. On the basis of this analysis will be updated algorithm of information system. Summary data of the requests will be considered in the development of new model lines and production planning. I believe that each model will be not a finished product but a “designer” of consumer functions and properties. By combining them in different combinations, one can easily create personalized or if you want customized products.

If a purse of the consumer at the time of the tender is empty, or he refuses to tender for other reasons (or make a purchase, for example, within a week or two after the tender) he will lose the discount. And he would have to do a new list for it.

As I said, in a simplified variant user can place his list directly on the service. But for many, is likely to be easier to plan their pending purchases in part on relevant thematic sites or social networks (devoted to books, cars, fishing, computers, consumer electronics, cell phones, etc., etc.). After all, there will be on hand voluntary counselors, experts from the same customers, and reviews by independent laboratories to help them make a smart choice in the tender.

Thus, service earns on accreditation of producers (sellers) and part of the profit is divided with thematic sites and social networks, which “bring” buyers and help them make informed choices. The manufacturer is able to create “designers” of personalized products, and the consumer – to buy goods created just for them, at a discount. Remind: the mechanism would become real at a time when consumers will “impose” their needs to producers. And the fact that such time is not far off, I’m sure.

Successful monetization and good shopping!

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