Ask HN: At what point do you consider finding a revenue model for a product? | Hacker News Reader

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

2 pointssolipsist2 comments

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?

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?

The answers will vary based on which revenue models people are talking about (advertising, subscription, etc.), so make sure to specify.

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.

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!

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