When is the time right for Blockchain profits ?
I did not expect to find this surprising conclusion during my research. This article will help you understand one important thing that helps you attract and maintain more partners for your blockchain technology project.
When the time is right, life will have a meaning.
When the time is right, world will be bright again.
When the time is right, things will fall into place.
When the time is right, you can MONETIZE
In order to make the project commercially viable, there may be a desire to take profits early and monetize the project early. But you shouldn't consider monetizing until the network participants have gained value. Despite how natural it seems to book profit as fast as possible, this may not be the best strategy in the long run.
Very early on in the life of consortium, you are getting the network members to come together. At that time, you have to be thoughtful about who is getting value at each of the different maturity stages. The monetization decisions of the consortia should take into account the network member’s willingness to pay. In the case of the Synaptic Healthcare Alliance, should you charge the doctors and insurance companies to participate in the business network? The answer to that depends on who is getting the value from the network.
The case of Synaptic Health Alliance
The value proposition for the insurance company is apparent because insurers are legally required to maintain physician data. On their part, they are trying to figure out ways to collaborate to make their provider data accurate and do that with a lower cost of maintenance. However, the doctors have the associated load of completing the paperwork for the insurance companies. Their pain of administrative burden in dealing with multiple insurers will surely go down. However, will it be enough that they will be willing to pay to join the network? That is not such a strong proposition.
As Stephanie Hurder suggests, “I think you really need to understand, what are the costs and benefits that the different types of stakeholders are getting? And what is their outside option for not participating?”
To further mature the Synaptic Health solution, it would be beneficial to the whole ecosystem if the providers can self serve and contribute to the data. The goal here would be to get more and more physicians onboard the system. And suppose the initial monetization strategy charges them to come on board to provide data for this use case. In that case, you are creating more friction for the network adoption as a whole. Instead, the network might be served better by looking to monetize with the doctors on a subsequent use case, which has a more compelling value addition for the doctors. When you develop your early monetization strategy, you focus more on the insurance companies because the value they are getting is clear and obvious.
This is one of the things that consortium members can do to make for a stronger partnership. Even though it will be difficult to resist the temptation, it is better to wait for when the time is right to monetize the results of your blockchain work.
Action
Leaders of projects should recognize that there is a right time to monetize the consortium. Before charging money, they should allow time for the consortium to grow and for the participants to gain value. The consortium will thus be able to realize its full potential instead of facing early cost burdens.
Resources
Ep.107 – Why enterprise blockchains fail? No economic incentives - Insureblocks
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