Value Without Monetization

March 6, 2018

An often misconception in business is that to create value in your company you need to charge your customers money and create monetized value in that sense. While I think it is important to generate a cash flow to keep your business alive, It also isn't the most important aspect if you ask me.

There are plenty of businesses that are worth billions, but don't charge their average customer a cent. Why is that? Here are a couple valuations that may blow your mind:

Tinder: Worth more than $3 billion in last valuation

Tinder is a free app, unless you decide to use the premium feature. The app has generated more than 50 million users, giving it value for potential buyers and advertisers.

Angry Birds: Worth more than $4 billion after multiple valuations and rejected an offer for $2.25 billion in 2012.

These are just a couple of examples you may not of known about. They have no participation in any of the stock markets, so the value created was purely user generated. This just goes to show how far your brand image can take you. Don't over stress about making money, build your product from the ground up. If you have a good product that is needed, money will find you.


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