How to monetize new features and use cases

As products evolve and grow, introducing new use cases to capture additional value or attract new user segments requires careful reconsideration of monetization strategies. The optimal monetization model is influenced by the use cases, target audience, and competitive environment, and should adapt whenever these factors change to prevent misalignment with the value offering. Adding new use cases, distinct from merely introducing new features, can significantly impact monetization, especially as a product matures. Vertical expansion involves creating separate plans for new user segments with specific needs, while horizontal expansion integrates new services into existing plans, targeting broader user bases. The choice between these strategies depends on factors like consumer value, cost-to-serve, and price scaling. Real-world examples such as Uber Pool's vertical expansion and Peerspace's horizontal add-ons illustrate how companies tailor their approaches based on user needs and cost structures. Ultimately, aligning use cases with monetization models is crucial to maintaining a balanced value offering and avoiding potential revenue loss or customer dissatisfaction.