Monetize

What Does It Mean To Monetize?

Monetization is the act or process of making an income from something that would otherwise not generate revenue.

When you think of blogs and YouTube channels, or even hobbyists who do things such as crochet for fun, these things alone do not generate money.

Upon adding advertisements and affiliate marketing to blogs and YouTube channels, suddenly, these two concepts provide the content creator with money.

The same is true for the hobby crocheter who monetizes their hobby by selling crochet projects on Etsy or giving private lessons to teach other enthusiasts how to crochet as well.

Detailed Look at Monetization in Personal Finance

Monetization can be looked at as something governments do when they monetize debt to keep interest rates on borrowed money low. 

When it comes to personal finances that affect the average individual, monetization boils down to finding ways to make money using skills and activities that normally don’t produce an income.

Monetizing your hobbies can turn everyday activities that are done for fun into activities that increase your earnings, which helps improve your financial situation.

Entrepreneurs and hustlers often look for ways to monetize different aspects of their lives so that they can accelerate growing their wealth or affording more in life.

Some marketers create newsletters that they monetize via sales funnels. 

For example, a blogger might offer something for free to get people to sign up for their newsletter. Then, each day, that blogger might send out more free things to warm the reader up until they then offer a low-cost product for sale.

Those that buy the low-cost product are then entered into a further sales funnel where sometime later, they’re offered a higher-ticket item for sale that builds on the low-cost and free items they’ve already received.

Online Monetization

Monetization is common online through things such as inserting ads into social media posts and videos, as well as on blogs and YouTube channels.

Streaming services also monetize by placing ads in videos. This helps companies offer lower subscription fees to customers as the advertisements they monetize with provide another source of revenue.

Example of Monetization: A Blog

Blogs consist of articles written about topics within the blog’s niche, but the articles themselves provide no form of revenue alone.

Instead, the following methods are used to monetize blogs:

• Display advertising from ad networks and companies
• Affiliate marketing, where the blogger recommends a product or service in exchange for commissions
• Sponsored content where the blogger writes articles about a product or service in exchange for money
• The blogger offers their own product or service for sale

Example of Monetization: YouTube Channel

YouTube channels are similar to blogs in that, alone, they do not produce any revenue. However, YouTube allows channels with enough viewed hours and subscribers to monetize via advertisements.

Content creators can also make videos that promote products or services and provide affiliate links to those products or services.

These are two ways that YouTube content creators can monetize their channels.

Example of Monetization: Crochet Hobby

Crocheting is a popular hobby that involves making things with yarn. Such things can be clothing, blankets, bags, and much more.

While many crocheters may choose to create things for themselves, friends, family, or for fun, others may crochet for profit.

A crocheter can opt to sell their products on a site like Etsy. They may consider starting a business where they teach others how to crochet in exchange for payment.

In these cases, the crocheter has monetized their hobby.

How Do You Monetize Something?

To monetize just about anything, you simply need to find a way to turn your skill or hobby into something that someone else will pay for. 

This could be in the form of selling a physical product, teaching a skill you know, working out deals with other companies, or doing something mentioned in this article.