

Ask HN: At what point do you consider finding a revenue model for a product? - solipsist

I've seen a lot of products become immensely popular before they even attempt to implement a revenue model (just look at Youtube). Obviously, there needs to be a compromise. Taking money from the beginning is sure to stunt the product's user growth, but waiting too long leaves you with the loss of potential money. What is the best way to handle the situation?<p>Also, transitioning into a revenue model can be tricky for many people. Does it require sufficient preparation from the beginning in order to successfully make the transition while retaining most of the users?<p>The answers will vary based on which revenue models people are talking about (advertising, subscription, etc.), so make sure to specify.
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alanpca
If you're attempting a 'startup' and not a 'project', I believe that it is
important to plan a revenue model from the inception. It can be difficult to
force-feed a revenue model on your product after it has gained significant
momentum. You don't have to implement it from the beginning, but it may help
to steer your development to meet with your revenue model.

If you're attempting a 'project' and not a 'startup', still think about what
kind of revenue models would work for the project. If the plan isn't to make
money (ie. make something cool), don't kill yourself thinking of how to make
money from your idea.

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bpeters
Like you said, it will vary from product to product. Will also vary based on
the long-term goal for that product.

Are you going for the lowest common denominator and the mass audience? Or are
you going for a niche market?

For products that want to reach the lowest common denominator and the mass
market, the product must have as less friction as possible. This most likely
means free and clean. To be able to do this, you will need to raise money up
front and keep raising money while growing your bottom line user base and
activity. Then once you reach your critical mass, apply x,y,z revenue model.

For the niche market, you can usually find people who are willing to pay
upfront for your product. However, your goal is not about explosive growth so
applying x,y,z revenue model is okay.

Hope that helps you out!

