User-Generated Content (UGC) business model

The User-Generated Content (UGC) business model is focused on building a community of users who create and share content. The primary goal is to foster an engaged community, with monetization often being a secondary concern.

Key characteristics

• Community-driven content: The content on a UGC site is created by its users. This can include text, images, videos, links, and other forms of media.
• Engagement funnel: UGC sites use an engagement funnel to move users to higher levels of engagement. This can involve turning lurkers into voters, voters into commenters, and commenters into creators.
• Monetization: UGC sites can be monetized in a variety of ways, including advertising, donations, and premium features. However, monetization is often secondary to the primary goal of building an engaged community.

Key metrics

Some of the key metrics for a UGC business include:

• Engaged visitors: The number of visitors who are actively engaged with the site, as measured by metrics such as time on site, pages per visit, and return frequency.
• Content creation: The percentage of visitors who create content, as well as the quality and quantity of that content.
• Engagement funnel changes: The rate at which users are moving to higher levels of engagement.
• Value of created content: The business value of the content created by users. This can be measured in terms of ad revenue, donations, or other metrics.
• Content sharing and virality: The rate at which users share content and invite new users.
• Notification effectiveness: The percentage of users who respond to notifications, such as email alerts and push notifications.