The Monetization Hierarchy: Know Your Place

The online world is a battlefield for cash. Everyone’s out to make a buck, but some players have a way better starting position than others. That’s where the monetization hierarchy (or pyramid) comes in - it shows you who’s really got the power.

Let’s break it down, layer by layer:

Base Camp: Infrastructure, Cloud, Big Tech Behemoths

These folks are the foundation of it all:

• Cloud Giants: AWS, Azure, Google Cloud - they provide the actual servers where everything lives.
• Tech Wizards: Companies building the core stuff and infrastructure - compute. containers, databases, security, the whole nine yards.

These guys get paid no matter what. They’re like the landlords of the internet.

Level Two: The Facilitators - Platforms

Next up, the ones who make things easy:

• Marketplaces: Amazon, Etsy, eBay, WarriorPlus - buyers and sellers meet here, and the platform gets a slice of the pie. (with every(!) transaction)
• PSPs (Payment Service Providers): Stripe, PayPal - they, too, gets a slice of the pie. Every single time.
• App Stores: Apple and Google rule the mobile app world, taking their cut from sales. (with every transaction)
• Social Networks: Facebook, Instagram, YouTube - they’re where we hang out and where businesses try to reach us.

These platforms call a lot of the shots. They can make or break your visibility, and without PSPs we can’t even do business transactions.

Level Three: The Vendor Crew - Tools & Solutions (Enablers)

Here’s where you find the problem-solvers:

• SaaS Companies: They offer ready-made software for anything you can think of - email, managing customers, websites, you name it.
• Info Sellers: People packaging their knowledge into ebooks, courses, webinars…you’re buying their expertise.

These folks help you get things done, but they rely on you figuring out and taking action on how to make money with their stuff.

Level Four: The Megaphone Brigade - Influencers, Affiliates, Content Creators

These are the ones spreading the word:

• Influencers: Social media stars with audiences who (hopefully) trust their recommendations.
• Affiliates: They earn a cut for sending customers to businesses.
• Content Creators: Bloggers, YouTubers, etc. They attract eyeballs with good stuff, then try to cash in on that attention.

Success here means being at the mercy of the platform and their algos, and the ever-changing whims of the audience.

Bottom Rung: Ads

Yep, advertising. For many, it’s the primary money-maker, but it’s a fickle beast.

You’re paying to get in front of people, hoping to make more back in sales.

So, what’s the point?

Where you sit in this hierarchy/pyramid matters. Higher up means more stability, more power.

If you’re selling info products or promoting stuff as an affiliate, you’re playing a game where the rules are subject to change. You’ve got to hustle and adapt.

Understanding this pyramid isn’t about being cynical. It’s about being smart.

Figure out your best strategy based on where you stand and what type of control you want over your business.

And look, I can’t stress this enough - get serious about building your email list.