Mailbag: Monetizing a Community
I received this in my inbox the other morning, and instead of simply replying to the person, I thought I’d share my response here, so that others in similar positions may benefit from the discussion. For protection of this person’s privacy, I have removed any personally identifiable information (including his domain names). His email is broken up into quotes below, with my comments under each.


One of the biggest challenges in operating a community-based web site also happens to be one of the age-old mysteries of the Internet: how can you monetize the site? You’ve got great content, and a growing base of members, but where is the cash? In this article, I’ll describe a rather unique method I patterned loosely after Priceline’s “name your own price” model.
Building a successful online community is no easy proposition. However, there are some proven strategies that can be employed to help ensure your online community gains enough traction and solidifies its position over the long-term.
When building an online community from the ground up, you have to set your growth and adoption expectations accordingly. To do so, it is important to understand a bit about the lifecycle of a community.
