Monetize your startup while the market still has room. We’re getting closer to the future of the internet, known as Web 3.0. The revolution comes with countless money-making opportunities, and you’ll want to be on the front lines.
Monetizing your start-up is key to success, especially as the technological world continues inching toward Web 3.0. There are countless ways to make money with this next evolution of the internet.
If you monetize your startup now, you’ll be in an ideal place to reap the benefits of Web 3.0 when it arrives.
This article will discuss what Web 3.0 is and how you use it to make money. Monetize your startup with the following techniques, then discover the other available opportunities. Here is what you need to know.
Table of Contents
#4. Autonomous and Artificially Intelligent
How to Monetize Your Startup for Web 3.0
#1. Mint an Exclusive Currency
Other Web 3.0 Business Opportunities
#1. SaaS (Software as a Service)
#2. Decentralized Finance (DeFi)
#3. BaaS (Backend as a Service)
What is Web 3.0?
Web 3.0 is the third generation of the internet. It is described as the future of the web, following Web 1.0 and Web 2.0. The new option is still in development and hasn’t been fully adopted. However, it’s expected to completely restructure how we create websites and interact with people on them.
It will be very different from the static web days of Web 1.0 and the current Web 2.0 landscape. The future of the internet will likely employ technologies such as artificial intelligence and semantic web properties. The goal is to provide web users with a much faster and more efficient experience.
Some other key features of Web 3.0 include:
- Decentralized
- Blockchain-Based
- Enables Cryptocurrency
- Autonomous and Artificially Intelligent
#1. Decentralized
In the first two generations of the internet, Web 1.0 and Web 2.0, governance and applications were centralized. This means large corporations like Google and Facebook were essentially in charge of operations and, more importantly, your data.
However, Web 3.0 is fully decentralized, meaning no higher powers hold your data and oversee your operations. The lack of central authority provides a more democratic experience for users. It also eliminates the worries around data security and privacy prevalent today.
#2. Blockchain-Based
Blockchain technology is what allows Web 3.0 to remain decentralized and secure. The Blockchain also provides a public ledger that keeps track of activity and transactions. This feature helps make Web 3.0 more transparent and trustworthy.
Blockchain technology also allows users to connect with people around the world. This leads to more reach for start-ups with more potential connections. It enhanced the start-up’s ability to make money and work with people worldwide.
#3. Enables Cryptocurrency
Cryptocurrency is a large part of Web 3.0. It is a decentralized payment method enabled across all Web 3.0 operations. This allows people to pay for goods and services and make global investments without stress.
The use of cryptocurrency is already wildly popular. As it continues gaining traction, it will likely prove to be a key point of interest for those looking to engage with Web 3.0.
#4. Autonomous and Artificially Intelligent
Web 3.0 will bring more autonomous technology, primarily powered by artificial intelligence (AI). This critical feature of Web 3.0 will provide faster, more efficient web experiences across countless platforms.
The AI will filter through data and support better web search results. Programs will also offer intelligent virtual assistance and operate similarly to a genuine human.
How to Monetize Your Startup for Web 3.0
There are countless models out there that you can use to monetize your startup for Web 3.0. This is certainly something you should be thinking about when you have a start-up idea to pursue.
The sooner you monetize your startup, the sooner you’ll start seeing a profit.
Increased profits can help you integrate Web 3.0 more efficiently.
Determining the best way to draw a profit from a start-up largely depends on your intentions. Whether you’re an app, a product, a service, or still an idea, you must research the best monetization strategies for you specifically. Look at your competitors for clever techniques or work with a personal branding agency to develop a unique approach.
These are the six top methods and models to help monetize your startup.
- Sell something
- User fees
- Licensing fees
- Subscriptions
- Transactional model
- In-product or in-app ads
#1. Sell Something
The easiest way to start making money is by creating or procuring a product and selling it. In most cases, this method is best suited for start-ups looking to trade physical goods. However, Web 3.0 is perfect for selling digital products and services.
#2. User Fees
The user fee model is typical among rental car services and parking lots. In this model, users get access to a product for a certain amount of time and pay to use it. User fee administrators track time in minutes, hours, or days.
User fees are different from subscriptions, though. The reason is that there isn’t a fixed monthly or annual charge. You only pay for the product or service for the time you actively use it.
#3. Licensing Fees
You can issue licensing fees if your start-up has created a product that others can use to make money. This is common among software developers like Adobe and other types of content like photos and music.
#4. Subscriptions
The subscription model is widely used across the board with products like Netflix, Spotify, and food delivery services. The main advantage of subscriptions is that they allow you to predict revenue. You can assume a specific number of paid subscriptions for each term.
Another layer to subscriptions is the freemium model, where the base version is complimentary. However, buyers must pay for more advanced variations. This option can also offer tiered pricing, which allows you to diversify your prices and offerings for different groups.
#5. Transactional Model
To monetize your startup with the transactional model, you charge commissions for using your platform and making transactions. You’re essentially bringing together two sides of the market which usually struggle to reach each other. You provide a platform that allows them to connect easily.
#6. In-Product or In-App Ads
If your product or start-up already has an audience, you can target them with in-product or in-app advertising. This includes a slew of advertising models, most commonly used on mobile. Options include banner ads, rewards for viewing ads, native advertising, and promoted listings.
Making Money with Web 3.0
While plenty of general methods can prove helpful when monetizing your start-up, there are also Web 3.0-specific practices. The decentralized and easily accessible nature of Web 3.0 yields several new profit opportunities. Those opportunities weren’t as available with former versions of the internet.
Because Web 3.0 hasn’t been fully adopted, there’s still time to pivot your plans and consider ways to monetize your startup for Web 3.0. Again, much of that decision depends on your intentions for the business or brand.
Some of the main ways you can monetize your startup with Web 3.0 include:
- Mint an Exclusive Currency
- Create NFTs
- Monetize Content Creation
- Form a DAO
#1. Mint an Exclusive Currency
Web 3.0 is fully decentralized. Thus, anyone can create and mint their cryptocurrency or tokens. They can also determine the value of those cryptocurrencies. Unique “money” can prove quite valuable when monetizing your start-up.
For example, say you distribute tokens to your social media following. Suppose you do it to show your appreciation for their support. You can use the exclusive currency to incentivize more people interested in your start-up.
You can also use your unique cryptocurrency to monetize the value of the data or products you create. For instance, produce NFTs that your followers can purchase with your specific crypto. This method creates an entire market system based on your start-up.
#2. Create NFTs
NFTs, or non-fungible tokens, are crypto-assets that exist on the Blockchain. Because each is unique, buyers can’t trade or exchange them equitably. NFTs represent real-life items, like pieces of art or real estate. Meanwhile, buyers sell them through the process of tokenizing.
Tokenizing these real-life items into digital assets makes them easier to buy, sell, and trade on a much larger scale. It also helps reduce fraud. NFTs often serve as exclusive collector’s items. If an artist creates a one-of-one painting, they tokenize it, and the buyer owns a one-of-a-kind object.
You can monetize your startup by creating unique NFTs.
Then push them to your followers or investors. You could also tokenize real estate or any other item specific that people may want to own.
#3. Monetize Content Creation
You can monetize your startup and market it via BitClout, and cash in on engagement from your followers. The price climbs higher with each new purchase of your start-up’s coin. Meanwhile, you make money while building an audience and community around your enterprise.
You can also monetize content creation with standard products like blogs. Often, it’s a good idea for start-ups to maintain a blog or content database. It helps them share updates and other important information while maintaining a presence in web searches through SEO and keywords.
With Web 3.0, you can turn your blog post into an NFT and put it on the Blockchain. Charge a fee to monetize your startup. Offer subscriptions and open access to tokenized content. Then inspire your followers, vendors, and supporters to invest in your work.
DID YOU KNOW: By monetizing your content, you approach other businesses and brands with an incentive to purchase ad space or engage with additional promotional opportunities.
#4. Form a DAO
DAOs, or decentralized autonomous organizations, are community-governed groups using rules enforced on the Blockchain through smart contracts. These internet-native groups are collectively owned by their members. The decisions are made via proposals and group votes.
Members of DAOs typically buy in and receive unique tokens or crypto for voting rights. This is a frugal way to monetize your startup because it helps you generate funds by selling exclusive access. Members can also buy more than one token for a significant impact.
DAOs are a great way to build community, which could make start-ups more money in the future. DAOs are common ground for like-minded people to gather and support a specific cause. Plus, Web 3.0 blockchain-based decentralization means all transactions and activity within the DAO are recorded and visible to everyone.
Other Web 3.0 Business Opportunities
Web 3.0 will completely reimagine the internet as we know it, and with that comes new potential revenue streams.
Whether you’re looking to monetize your startup or generate some side hustle income, there are opportunities abound with Web 3.0.
Some of the other potential money-making opportunities facilitated by Web 3.0 include:
- SaaS (Software as a Service)
- Decentralized Finance (DeFi)
- BaaS (Backend as a Service)
#1. SaaS (Software as a Service)
SaaS, or Software as a Service, is a business model in which a provider hosts applications and makes them available to users for a fee. This model isn’t anything new. Many start-ups already use it, including Microsoft and Adobe. Web 3.0 offers a unique perspective, and it’s evident.
With Web 3.0, you can offer to host crypto wallets on the Blockchain for other businesses for a fee. For example, say there’s an old, local pizza place in your neighborhood that may want to consider accepting crypto from customers. Your business could offer a crypto wallet hosting service to the pizza place on a subscription basis, which could make you a profit.
#2. Decentralized Finance (DeFi)
The entire blockchain system will completely reshape the financial industry. Decentralized Finance is an emerging technology based on secure ledgers, like the ones used to monitor crypto. DeFi removes third parties from transactions, eliminating fees while increasing security and accessibility.
In Web 3.0, startups can use DeFi to encourage people to invest their savings into stablecoins and provide high, incentivized interest rates. DeFi’s primary goal is to democratize the financial system. The decentralized nature of Web 3.0 makes that easy to do.
#3. BaaS (Backend as a Service)
Traditionally, BaaS, or Backend as a Service, includes website hosting or data storage services. It automates the backend of development to maintain servers. In Web 3.0, BaaS is reimagining Blockchain as a Service.
Blockchain as a Service functions like a web host, managing the backend of a platform for blockchain-based apps and operations. As blockchain technology grew beyond its initial use for crypto transactions, demand for hosting services emerged. This dramatically increases the use of Blockchain and leads to business opportunities for providing these hosting services.
Conclusion
Monetizing your start-up is key to success, especially as the technological world continues inching toward Web 3.0. There are countless ways to make money with this next evolution of the internet. If you monetize your startup, you’ll be in an ideal place to reap the benefits of Web 3.0.
The decentralized and easily accessible nature of Web 3.0 yields several new profit opportunities that weren’t as available with former versions of the internet. Because this new internet hasn’t been fully adopted, there’s still time to pivot your plans and consider ways to monetize your startup for Web 3.0.
About the Author
Jonathan Hung is one of the most active angel investors in Southern California; his mission is to drive value creation within each portfolio company. In support of this mission, he serves as Co-Managing Partner at – Unicorn Venture Partners.
He and his team target investments in US companies with global market potential, focusing on long-term growth expansion to East Asian markets.
As a Managing Member for his family office fund, J Heart Ventures, Jonathan developed his investing prowess, making investments in start-up companies such as Gyft, ChowNow, Miso Robotics, Clover Health, and Bitmain, to name a few start-ups he funded.
Jonathan has various degrees from the University of Southern California, London School of Economics, Massachusetts Institute of Technology, and The Wharton School at the University of Pennsylvania.