When deciding whether or not to launch a self-serve monetization channel, what factors should I consider?

While there are many reasons to open up a self-service 'buy-now' channel for cost and scalability reasons, these are a few critical things to consider when determining if it's right for your business:

1. Product Complexity: Consider the complexity of your products or services. Self-serve buying channels are typically more suitable for straightforward, easily understandable products that do not require significant customization or consultation. Can your product be purchased via self-service content or compelling merchandising experiences, OR is a complex product that requires a lot of explanation?

2. Existing Channels: Evaluate how a self-serve buying channel would complement or potentially cannibalize existing sales channels. Ensure that the new channel aligns with your overall multichannel strategy and does not conflict with established sales processes. This is especially important when managing both headcount for channels that require humans to staff them (i.e. Sales or Customer Success), as well as incentivizing the channel mix that is most suitable for your business.

3. B2C vs. B2B: Direct to consumer (or SMB) products are more typically sold via self-serve channels, such as on the Web or In-Product up-sell vs. B2B products are usually higher-priced products or services that require more of a consultative sale. Understand if your target customers prefer self-service options for purchasing. Analyze customer behavior, feedback, and preferences to gauge the demand for a self-serve buying channel.

While these are not the only factors, these are the first ones that I would think about before you get too far along in operationalizing a new channel.

Self-serve monetization models are business models that allow customers to purchase products or services without the need for direct interaction with a sales team. Some examples of self-serve monetization models include subscription-based, freemium, pay-per-use, and marketplace models. While it's widely used, it will work not for all businesses and products.

Consider 4 key factors when choosing to go for self-serve monetization:

1. Your target audience.

Consider the needs and preferences of your target audience. If your audience is primarily composed of small businesses or individual customers, a self-serve monetization channel may be a good fit. However, if your audience is primarily large enterprises and b2bs, a more traditional sales approach may be more effective. Examples: Upwork for the mass market and Turing for large enterprises.

2. Your product.

Consider the nature of your product or service. If it is complex or requires significant customization, a self-serve monetization channel may not be the best option. In this case, a more personalized sales approach with a demo will be more effective. While for b2c consumer apps serve-serve is a norm. Examples: educational apps, wellness apps, and games are self-serve because that's how users expect them to be.

3. Your business model.

Consider how a self-serve monetization channel would fit with your overall business model. If your business model is based on recurring revenue streams, a self-serve monetization channel may be a good fit. However, if your business model relies on high-touch sales and support, a more traditional sales approach may be more effective.

4. Your resources.

Consider the resources that would be required to launch and maintain a self-serve monetization channel. This might include technology, personnel, marketing, and support. If you do not have the resources to support a self-serve monetization channel, it may not be the right option for your business.

I hope, it was useful!