In the world of tech companies, there isn’t much variation in how you make money. Either you build a company that has a revenue strategy based on a subscription model, advertisement model, or a combination of the two. No matter how you look at it, it will always boil down to these two. How are we supposed to decide?
In a previous article, we went over a basic understanding of the two and how to apply one in general. However, like most things, a light sample is never really enough. Now let’s take a deeper dive into both, and also the factors that determine which is a better choice.
In the simplest of terms, advertisement is the translation of attention into money. The goal is to keep your user base tuned in as long as possible, that way the attention can turn into dollars. This can range from selling data to companies to serve ads in highly visible places, or being more thoughtful and serving advertisement in a way you wouldn’t even notice.