Techpreneurs and the Challenge of Revenue Generation from Digital Platforms

In today’s interconnected world, leveraging digital tools and embracing digital transformation is critical for improving work processes and business automation, ultimately leading to a good ROI while reducing overheads. However, a common misconception among entrepreneurs is viewing the digital product itself as the ‘actual product.’ Instead, the real product is the ‘users’ of the digital platform.

The goal of any digital product should be to propose enough value to attract and retain users. The digital product acts as the ‘bait’ to draw in users, who are the true source of revenue. Consequently, data privacy has become crucial, ensuring users are aware and consent to the monetization of their data while using the app.

For instance, WhatsApp was acquired for $19 billion, yet it remains free for users. This is because the real value lies in the data and engagement of its users, not the app itself.

Techpreneurs face the challenge of creating valuable solutions that lead to user acquisition and, subsequently, customer retention. It’s essential to maintain traction by continuously adding value, as these users are the product being sold. Without understanding digital product monetization, techpreneurs might struggle to generate significant revenue using traditional business strategies.

Understanding the Business Climate of Digital Products: The Role of the TBA

A Technical Business Analyst (TBA) plays a significant role in defining strategies for app monetization and revenue generation. Here’s how TBAs contribute:

• Market Analysis: Conducting market research to understand the competitive landscape, target audience, and potential revenue streams.

• Business Model Development: Refining the business model, including identifying revenue streams like in-app purchases, subscriptions, and ad-based revenue.

• Stakeholder Engagement: Aligning monetization strategies with business goals and user needs.

• Feasibility Analysis: Assessing the technical feasibility of various monetization strategies.

• Data-Driven Decision Making: Analyzing user behaviors and preferences to design effective monetization strategies.

• Integration Planning: Ensuring smooth implementation of monetization features without disrupting the user experience.

• Performance Tracking: Setting up metrics and KPIs to track monetization strategy performance.

• Continuous Improvement: Recommending improvements based on performance data and user feedback.

• Risk Management: Identifying and mitigating risks associated with monetization strategies.

• Regulatory Compliance: Ensuring compliance with data privacy laws and advertising standards.

TBAs leverage their analytical skills and technical understanding to ensure that app monetization strategies are effective and aligned with the overall business strategy.

Techpreneurs: Innovating Beyond Traditional Business Models

Techpreneurs must adopt the mindset of a Technical Business Analyst. Success in the digital space hinges on three key elements:

• Value Proposition: Offering innovations, services, or features that make the product attractive to customers.
  
• Unique Selling Point (USP): Highlighting what makes the product or service better than competitors.
  
• User Acquisition: Effectively bringing in new customers or clients.

These elements must be perfected before achieving profitability, which begins after breaking even. Simply having a good idea for a digital product is not enough, as evidenced by the myriad of apps available, many of which struggle to generate profits.

Apps like WhatsApp, Facebook, X (formerly Twitter), Uber, and TikTok are essential for users because they master these elements and continuously provide value.

Partnering for Success

At ServerPoint Technology Nigeria, we partner with clients to implement digital products from start to finish, utilizing professional UX Designers, Technical Business Analysts, and Software Developers. If you need assistance in mapping out a strategic roadmap for monetizing your digital product, please contact me at damola.adewusi@serverpointnig.com or call any of the following numbers: +234 813 2007 370, +234 701 938 0439, +234 0704 118 7638.

Thank you for reading.