With a forecasted market size of $1.6 trillion by 2025, intriguing monetization opportunities await Internet of Things (IoT) companies that are strategic about translating product usage into scalable revenue. Need help organizing your monetization efforts to capitalize on these possibilities in the IoT space? You came to the right place!
Monetizing the Internet of Things (IoT) involves leveraging the data generated by connected devices to create new revenue streams. Companies can sell insights derived from big data analytics, offer subscription-based services, or implement usage-based billing. This approach not only enhances product value but also provides opportunities for additional income through innovative business models, driving growth and customer engagement.
Below, we outline four different plans you may consider deploying to organize your business’s billing management and begin monetizing your IoT product offerings today.
Take a look around your home. From thermostats to home security systems to smoke alarms to voice command assistants, IoT now plays a key part in daily household management. These products come with usage-based settings that individuals can tailor to their respective preferences.
So what is the best option for monetizing these products and services? While some businesses opt to issue a flat-rate cost that is independent of usage, we recommend implementing a recurring revenue model or subscription-based plan to reflect the real value of your IoT offering. Using Rev.io’s sophisticated billing platform, you can expect to maximize the true value of these offerings, monetize your products and services, and profit accordingly.
Implementing a subscription-based or flat-rate IoT monetization plan can be beneficial if executed properly. These models have the potential to make forecasting your revenue yields and managing general subscription services easier processes to oversee.
While there is upside to this option, there are also potential downsides to consider when monetizing the internet of things. For one, a discrepancy in personal product usage may lead to less revenue generated and more revenue leakage on your side. By opting for a usage-based plan, you may capture more of the value that these IoT products deliver your customers, maximizing your monetization efforts as a result.
Wondering how you can manage this type of IoT billing plan? Rev.io has you covered with our IoT monetization solutions. Our automated quote-to-cash solution handles the full financial processing experience, from transactions to payments, for customers’ connected devices in your network.
Implementing a consumption-based pricing model can prove complex but also potentially fruitful. On one end, users may opt for conservative usage of your IoT products and services to keep their bills down and costs low. As a business, you will earn less if this approach sustains. On the other hand, the advanced communications industry continues to trend towards preferring this model over traditional subscription programs and flat-rate offerings. Users appreciate the transparency that this type of model offers – you pay for what you use.
With all factors considered, it’s clear that overseeing a usage-based billing process for IoT products and services can present some challenges but undeniable upside. At Rev.io, our sophisticated billing platform features intuitive usage-rating capabilities for an array of connected IoT devices, helping you monetize your business to ultimately jumpstart revenue growth.
There is serious monetization potential in the customer and device data you collect as part of your IoT product and service offerings. From tracking driving habits to health and lifestyle metrics, these analytics will provide direct insight into your customers’ preferences and needs.
By leveraging this information to make necessary adjustments based on the specific data you collect, you can better serve your customer base and subsequently develop a sustainable monetization engine that helps your business generate revenue growth well into the future. With Rev.io’s sophisticated billing platform, featuring built-in usage ratings and IoT billing software, you will feel prepared to oversee this type of successful system.
Contact Rev.io today to explore solutions for managing and monetizing your business’s IoT products and services. We look forward to discussing our strategic fit as your billing partner and detailing more of the unique qualities that distinguish our platform.