There are various types of businesses in the world. But not all businesses work the same way. Every business has its own way of connecting with its customers and delivering products to them. Because the business model of one company may not suit the other. Each and every company has to have a business model that is suitable for the product they want to sell. When people think of a product they think of they often think of it as something that is physical like a phone or shoe. But that is not always the case. A service can also be a product because it is solving some of your needs. If you don’t understand then look at it this way. Amazon’s e-commerce website is a platform that allows you to buy different products.
Here the business model of this website is a brokerage business model. Because it connects the buyers with sellers. When it comes to Netflix it does not sell you any product. Because Netflix is the product. Netflix is a video streaming service. It is not selling you movies but it is selling the ability to stream all of the movies in its library for a premium price. So the business model Netflix uses is called a subscription business model. Similarly, there are other types of business models. A company may use more than one business model to generate revenue. It depends upon the types of services they offer. This article will explain the business model of a website called Product Huntunt and how it makes money. So let’s dive into the topic.
What is Product Hunt?
This is a website that has been gaining a lot of popularity in recent years especially in the tech community. There is a good reason for this because the website is completely focused on connecting people in the tech industry. Product Hunt was founded by Ryan Hoover in the year 2013. It was backed by Y Combinator which is a startup accelerator company that was launched in the year 2005. Y Combinator has been involved in launching many notable websites like Reddit, Twitch, and Airbnb. Product Hunt. Product Hunt is a bit different from most of the sites that you have come across in your life. You have seen sites where you can discover products or meet people. But Product Hunt does both. Using this site you will be able to discover and share new products.
The users of this site who are building new products will submit them to it. After that, the website will list them. This site has a voting system similar to Reddit along with a comment section. An item will top the list of that day if it receives maximum votes. The products are categorized into four categories. Games, technology products, books, and podcasts. If you want to submit a product then all you have to do is provide the name of the product and a URL along with a tagline. By 2006 the website was successful in discovering over 100 million products. Product Hunt sends daily newsletters to its users that contains the list of top products of the previous day. You can also download a Google Chrome extension. It also has apps for Android, iOS, and Mac OS.
The business model of Product Hunt
Product Hunt is just like the social media platforms you use. It is similar to Facebook or Instagram as it does not provide any content on its own. All the content that is present on the website is posted by the people who are using the website. This kind of business model is called a crowdsourcing business model. Here the content is provided by the users and it is managed by Product Hunt. But that’s not the only model it uses. Like any other social media platform, its main purpose is to keep its users engaged. In order to do this, they keep providing new features and improve the quality of the website from time to time.
These are the important parts of Product Hunt’s business model.
Product Hunt is not just a website where you can find new products or services but it also acts as a meeting place for different people. Here you can find and connect people who are building new products. You can communicate with people who are creating products that are similar to yours. One can meet people belonging to the same niche and find out something that they don’t know. Product Hunt allows companies, entrepreneurs, and geeks to share ideas or even just talk about them. People can even ask for advice on Product Hunt. You can do this on their ask page.
This is another great thing that they offer. Product Hunt not only helps you discover new products designed by companies but also get jobs. You can often find job postings from companies that require employees, partners, or freelancers.
Ship has to be one of Product Hunt’s best features. Because this is very helpful to the makers. Ship is a toolkit using which the makers can test the MVPs ( Minimum Viable Products), Beta, and final versions of their products. This makes it very easy for the makers to collect extra information and new leads. Makes can improve their products by taking surveys, conduct A/B testing, integrate their products with other platforms, and talk to their target customers.
Products are ofcourse the main part of Product Hunt’s business model. It is in the name. Everything that happens on this platform is related to products. The platform form was created to discover new products that are out there. It doesn’t matter if you created a product or not you can introduce it to the community if you know about a product that others don’t. The process of discovering new products is called hunting hence the name Product Hunt.
It is quite easy to share information about new products. All you have to do is add the link to the main website, write the name of the product, add images, give a description, and share your opinion about the product with others. You can upvote the product you like. Not only that but you can also share the information with other people. If you just want to look at the best products that you can just go to their homepage. This is a great strategy because it vastly improves user experience and engagement as the users getting to see something amazing off the bat.
This is another great thing in their business model. Because hosting events will make it easy for people to look at it more as a community than a social media platform. The best thing is that it is absolutely free to host a Product Hunt meetup. It is more beneficial for companies to host events on Product Hunt because they will get the audience that is genuinely interested.
This is an excellent strategy of Product Hunt because it increases the engagement if the user. Product Hunt sends newsletters to its users every day. If a user doesn’t use their website or app they can know about the top products of the previous day by looking at the newsletter. This will not only let them know about what they have missed but also compels them to go to their platform and check what’s new.
This is like a Q&A session for the community. Here the entrepreneurs can ask questions to other entrepreneurs and founders when they are launching their product. It is more like an “ask me anything” session for the people of the community.
How does it make money?
There are several ways in which Product Hunt makes money let’s go through them one by one.
This is probably the most popular and common way for a website to make money. Since this is a website that revolves around products it is no surprise that it makes money by promoting them. But it does not promote products as other websites do. It is quite different in the way it promotes products. Product Hunt promotes only one product per day. So if you want to promote your product you have to reserve the date. Even the prices for promoting your product is not fixed. Depending on the demand it can easily be more than $5000. Not only that you can only promote the products that have been launched on Product Hunt. You will get at least 4th place on the list of products of that day along with a place in the newsletter.
Product Hunt also makes money by promoting jobs. This is a website that is filled with users that are talented and experienced developers. So big companies like to post jobs on this website. Product Hunt charges $299 per job posting. Each posting is live for 30 days.
Product Hunt probably makes the least amount of money by promoting events but is revenue nonetheless. It allows companies to advertise their products to millions of people using the platform. They can also get a special discount for registering for the events through Product Hunt.
This is a SaaS model. Here some of the services are free while the others can only be accessed through a subscription. The free plan will not give all the necessary features to the makers. So instead they can get a paid version with lots of advanced features. If you get the paid subscription you will get access to tool kits that will create and customize landing pages. You can also create widgets using which you can collect feedback and send messages to your target audience. When you get a paid version you will be able to manage unlimited projects and send unlimited messages. Apart from that schedule product launches, promote your products, conduct polls, and surveys. You can also conduct A/B testing.
This is the business model of Product Hunt and this is how it makes money. Product Hunt’s business model is a combination of crowdsourcing, advertising, and subscription business models. Currently, its main theme is new products in the tech industry. However, the future plans of the company are different. It aims to be a platform where people can find new things related to every industry. They want to be a platform that is not just about tech products. In the future, it wants to be a platform where people can discover new stuff in fashion, music, and many other things.