Thursday, May 26, 2022

Basic monetization model User-generated SaaS websites

The main UGW monetization model is advertising, so on such sites the role of both "active" users who create the bulk of the content, and "passive" users - those who interact with this content, creating not so much of their own, is important. The number of users, as well as the quality and depth of their interaction with the site, are the main win points on which the efforts of those behind these sites are directed.


What metric is considered key in this product?

DAU/MAU (daily/monthly active users) — number of users for a period or


Average time spent — how much time users spend in the service on average for the period


What metrics are taken into account in attraction?

New users - Number/share of new users They do not use standard metrics such as CAC. New social networks count how many users are needed to trigger the mechanisms of virality and buy users at a time


What does user activation mean and what metrics are important there?

Here we understand that the user really understood the essence of the product and began to use it. Depending on the service, these may be:


Number and % of users, who added X friends - Number and % of new users who added at least X friends

User-generated SaaS websites

User-generated websites are platforms where the main content is created by users of these sites. Content can be anything - texts, photos, videos, audio.


The most famous examples of UGW are Facebook, Instagram, Twitter, Youtube, VK, Medium and many many more.


Features of user-generated websites

High return of users;

Network effect, the more users, the faster the number of new users grows;

UGWs generally don't acquire users through paid channels;

They mainly work through advertising monetization;

In addition to standard metrics, it is important to take into account the quality of user interaction with the site - the quality and quantity of posts created, engagement (likes, reposts, other interactions with content).

Basic monetization model User-generated SaaS websites

The main UGW monetization model is advertising, so on such sites the role of both "active" users who create the bulk of the conten...