You have a shiny new startup, you’ve a/b tested, scrubbed the code for bugs, received feedback and interest from your peers…
Time to start considering monetization strategy.
Outside of determining margins and COGS (lessons for another day), you face a decision that lies more in the human behavior realm than in the pure quantitative. Do you price for value or aim higher? For any number of reasons, your instinct may be to aim a low.
I caution against this with a keen eye on these 3 scenarios:
Spend a few years selling anything… be it services, SaaS, or tangible goods…
Of all the elements that make understanding the online economy a challenge as it relates to “traditional business”, one of the more unique elements is that you have clients on BOTH sides of your business model. This is particularly critical in the startup arena.
In an online economy, you are serving two masters from the moment you launch. Many founders fail to see this dynamic at the outset, causing costly delays in revenue generation, investment opportunities, and press opportunities. This is time that you simply cannot recover.
The consumer may very well be the one forking over the cash for…
Ever since Uber landed in our smartphones three-ish years ago with an intoxicating mix of on-demand service and lower than average rates, there have been a wide array of copycat services hoping to ‘win’ our business by promising an easier way to get from here to there.
Generally these companies operate on the premise of pairing or sharing unused transportation with those looking to use said resources at a lower cost than traditionally available.
While we all know about Uber, Lyft, and Zipcar, I’ve found a number of other services I like that are still under many people’s radar. …
Last year I was able to attend SXSW for the first time. I came away with five major takeaways for SXSW newbie’s who are thinking about attending this year’s event.
1.Meetings:
It’s difficult to pin any one person (regardless of prior relationship) down to a particular location. Rather, embrace the laid back atmosphere of SXSW and go with the flow, whether that means an early morning bar visit or a second helping of BBQ. At the start of the week, have an idea of the groups of people attending each event. …
VMG Strategy specializes in consulting and advisory services for pre-seed, and seed stage startups. www.VMGStrategy.com