What is monetisation?

Monetisation is the term used to describe turning an object, goods, service or asset into money. It usually refers to currency – i.e. metals made into coins and the printing of bank notes – but companies are increasingly looking to turn assets into sources of revenue, and websites can also be monetised.

Where have you heard about monetisation?

A popular monetisation process is in ecommerce. Website owners monetise their sites by making advertising space available to earn cash from the content they publish. If a website attracts enough visitors, the money paid by advertisers can be substantial. Just ask some of YouTube’s top vloggers.

What you need to know about monetisation.

Governments sometimes monetise debt to keep interest rates low on the money they’ve borrowed. They can basically buy their own debt by printing money, but this causes a rise in inflation.

Monetisation can also refer to the conversion of an investment into cash. If investors such as venture capital or private equity firms put money into a private company, they will expect a return on investment within a certain time frame. This is usually achieved by monetising their investment through a sale.

In addition to selling the asset and gaining revenue from products and services it is now possible to drive revenue from business operations, such as the web-sites, e-books and music. Website visitors can see advertiser links around the homepage or on side bars and the website owners can earn a an amount of money. In addition, selling apps, subscriptions to exclusive content, and sharing videos and podcasts, are alternative ways businesses monetise content.