Monetization motions intro

How You Turn Value into Revenue

You’ve just defined how you’ll bring users into your ecosystem. Now it’s time to decide how you’ll consistently turn that value into revenue.

This is your monetization motion — the structural way your business converts prospects into paying customers.

Unlike tactics (pricing models, checkout flows, sales scripts), a monetization motion is the system you rely on. It determines who does the converting (product, marketing, or sales) and how scalable and sustainable that conversion is.

The Three Monetization Motions

1. Product-led (PL)
   • Customers convert themselves directly in the product.
   • Think: self-serve signup, free trial → upgrade, ecommerce checkout.
   • Best when: ARPU is relatively low (<$1k), product is easy to adopt and understand, value is realized quickly.
   • Output: Fast velocity, low cost per conversion, but limited to products that don’t require deep education or complex onboarding.
2. Sales-led (SL)
   • A sales team guides prospects through a consultative buying process.
   • Think: demos, negotiations, multi-stakeholder approvals.
   • Best when: ARPU is high ($5k+), product is complex or risky, buyer needs human support to build confidence.
   • Output: High-touch, slower velocity, but unlocks enterprise-level accounts and big contracts.
3. Hybrid
   • Combines product-led for smaller customers with sales-led for larger ones.
   • Think: a self-serve plan for SMBs, with account reps for enterprise.
   • Best when: You serve multiple customer segments with different ARPUs or levels of complexity.
   • Output: Flexible, but operationally heavier — requires balancing two models.

How to Decide Your Monetization Motion

Anchor your decision in your Foundational Five, Guardrails, and Acquisition Motion.

Key questions to ask:

• ARPU / Guardrails:
  • Can your ARPU support the cost of sales reps?
  • Or does it require fast, efficient self-serve conversions?
• Product Complexity:
  • Can customers adopt and realize value without help? → PL works.
  • Do they need education, onboarding, or risk mitigation? → SL may be required.
• Acquisition Motion Alignment:
  • If you chose a fast, low-context acquisition motion (like Paid or Virality), you likely need PL monetization to keep pace.
  • If you chose a slower, high-context acquisition motion (like Sales), you can pair with SL monetization — velocity and commitment align.

Decision Table: Monetization Motions