A monetization model outlines the way a product or service earns revenue. Below are some of the most common approaches:

• Subscription – recurring payments for access to services or content. This model ensures predictable income and encourages continuous product improvements.
• One-time purchase – customers pay once to own the product. It’s suitable for tools that deliver clear, lasting value.
• Freemium – basic features are offered for free, while advanced functionality is paid. This helps grow the user base quickly but requires a careful balance between free and premium options.
• Ad-based – revenue is generated through ads shown within the product. This model works best with high traffic and strong user engagement.

Selecting the right business model depends on factors such as user behavior, expected customer lifetime value (LTV), customer acquisition cost (CAC), and the specifics of the market. For instance, if users interact with the service only occasionally, a subscription may not be the best fit. On the other hand, if the goal is to attract a large and diverse audience quickly, a freemium model can be more effective. Whatever the choice, the model should scale alongside the product and remain clear to users from the very first interaction.

Preparing the product for monetization

Integrating payment mechanics at the MVP stage

Monetization should be considered from the very start — ideally, already at the MVP stage. This means integrating payment systems, shaping pricing plans, and setting clear distinctions between free and paid functionality. Early integration not only makes future scaling smoother but also provides valuable insights into users’ willingness to pay. Even simple mechanisms, such as premium options, tiered functionality, or ad placements, can serve as a foundation.

Which features should be paid from the first release?

When launching a product, it’s essential to identify which features deliver enough value to become part of the paid offering. Paid functionality works best when it creates a clear improvement in the user experience — for example, lifting usage limits or significantly enhancing productivity.

Ideally, these premium features appear once users are already engaging with the product and see the practical value of its core capabilities. Advanced analytics, automation, data import/export, or saving activity history often fall into this category. They are typically perceived as professional-grade tools and motivate users to upgrade.

At the same time, the free version should be strong enough to attract users and clearly demonstrate the product’s value. The goal of the first release is to engage, not frustrate, so the free experience must feel complete. Paid features shouldn’t come across as restrictions but as a natural extension of the product — something users choose themselves once they’re ready for more.

When choosing a monetization model, it’s crucial to know your users, what they find valuable enough to pay for, and how often they’re likely to return. These insights shape your business logic, guide feature development, and influence the pace of growth. A sustainable product strategy starts right here.