How to monetize workflow applications: sponsored content

Posted by Garrett in Blog, New Media Monetization      No comments

Sep
8

In honor of Office 2.0, I put a bit of thought into one of most classic web-based applications, the task organizer. While I’m not sure when the first task app was released (nor do I really feel like attempting to tackle such a daunting research task), my current favorite is Remember the Milk. They have an incredibly powerful little application that gives users lots of search functionality and power task tools.

The problem they face, however, is one similar to many forward thinking workflow web companies: revenues. Their current strategy focuses solely upgrading its users to the “Pro” version, which is not a bad strategy assuming the Pro version is correctly positioned and targeted at the correct demographic within their general user pool. Preferably, ones who value the RTM experience enough to correctly evaluate the value added by more robust features.

This is a common web strategy, and one that I love; however, anyone who knows anything about conversion rates understands that a LOT of application traffic goes unmonetized. Can 5% of a paying audience really support the free rider economy of the other 95% user base? If those users aren’t monetizing under your current strategy, there’s lots of potential to increase income by offering other revenue streams.

And for a workflow application, one viable opportunity is sponsoring the content that I’m working with anyways. Zoho makes a pretty good free CRM, but wouldn’t it be nice if I could download ready-made business development templates for my industry? How about purchasing lead lists directly through the platform from SalesGenie?

Think of all the potential possibilities for sponsored To-Do Lists. Increasing your networking efforts. Buying a house (perhaps custom tailored to an area by your local realtor but sponsored at a national level by RE/MAX). Or breaking into the advertising industry (sponsored by Acquent).

This kind of advertising could be POWERFUL for channel marketing and reaching out to your varied network of suppliers and resellers. Pandora uses this model in its own advertising programs by allowing users to subscribe to “sponsored” stations (that feature will have to get its own post in the future, because there’s an entire treasure trove of technobrander candy in that simple feature), so why can’t I subscribe to the same task system that Richard Branson or William Buffet use to keep their dreams in line with reality?