Factor 6 of 7 · AUG framework

Monetization audit

Does the product earn? Monetization is where every other factor cashes out. Strong scores on Acquisition through Advocacy mean nothing if the conversion-to-revenue mechanism is broken.

What this measures

The conversion from active user to paying user (or for ad-supported: from session to revenue). And the durability of that revenue — churn-to-LTV ratio, expansion revenue, pricing-tier distribution.

The 7 monetization metrics

1. pRPM (page RPM) — Revenue per 1000 pageviews. Target €12-30 for ad-supported; varies by vertical.
2. iRPM (impression RPM) — Revenue per 1000 ad impressions. Target €6-15.
3. Viewable impression rate — % ad loads reaching 50%-viewable ≥1s. Target ≥70%.
4. CTR (click-through rate) — Clicks ÷ viewable impressions. Range 0.8-2.5% for compliant placement.
5. Ad density — Total ad area ÷ viewable page area. Target 20-35%. HCU-unsafe above 40%.
6. Revenue per session — Total $ ÷ unique sessions. = pRPM × pages/session ÷ 1000.
7. Revenue per returning user — Cumulative lifetime $ ÷ unique user. Grows with Retention.

For subscription SaaS, additional metrics

• Trial-to-paid conversion — % trial users who convert. Target ≥15% for self-serve; ≥30% for sales-assisted.
• Pricing-page conversion — % pricing-page visitors who start trial. Target ≥5%.
• Month-1 paid retention — % paid users still active month-2. Target ≥85%.
• Average revenue per user (ARPU) — Monthly $ ÷ paid users.
• Lifetime value (LTV) — ARPU × avg months retained. Target ≥12× monthly ARPU.
• LTV-to-CAC ratio — LTV ÷ customer acquisition cost. Target ≥3× for healthy, ≥5× for excellent.

How it's scored (1-10 rubric)

• 1-2: $0/week. Pre-approval or policy-blocked.
• 3-4: <$5/week. Below the math floor — acquisition spend cannot recover.
• 5-6: ~$30/week. Basic monetization working; missing optimization.
• 7-8: ~$150/week. Multiple revenue streams. Trial-to-paid solid.
• 9-10: ≥$600/week. Compounding monthly. Expansion revenue observable.

The math floor (revenue ceiling formula)

revenue_ceiling_monthly = sessions × pages_per_session × RPM ÷ 1000

This isn't a projection — it's a hard upper bound. No monetization optimization beats this ceiling. If the ceiling is <€20/mo, monetization work is operator-time burn. Until Acquisition + Engagement lift the ceiling, Monetization tweaks are rounding error.

Worked example: 100 sessions × 1.5 PV × €15 RPM = €2.25/month ceiling. Doubling CTR or adding affiliate signup #5 still produces ~€4.50/month maximum. Acquisition has to grow 10× first.

The 7 ad-placement patterns (ranked by RPM lift)

1. Above-fold sticky banner — +30% iRPM. Never overlay content; slide in after first scroll.
2. Inline within content (300w intervals) — +25% viewable rate. One per ~300 words; never break a sentence.
3. Below fold + sticky sidebar (desktop) — +15% viewable. Sidebar scroll-locked.
4. After result page (calculator sites) — +40% CTR. Highest-intent moment.
5. Anchor ads on mobile bottom — +22% iRPM. Dismissable per Google policy.
6. Interstitial on internal navigation — -20% retention. AVOID.
7. Auto-play video ads — -35% engagement. AVOID — violates AUG floor.

Monetization anti-patterns (hard-rejects)

• Ad density >40% of viewport — Google policy violation, account suspension risk
• Ads that reflow content on load — CLS penalty + AdSense policy
• Ads resembling navigation/buttons — click-fraud risk + policy violation
• Pop-ups, pop-unders, exit-intent ads — AdSense ban
• Forcing ad view before content — interstitial abuse
• Encouraging ad clicks (“support us — click below”) — instant ban
• Ads on /privacy, /terms, /contact, /about, 404 pages
• Ads on pages under 250 words of unique content — HCU thin-content signal
• Verdict labels on YMYL surfaces without licensed credentials — policy violation regardless of monetization

Funnel-order discipline

Most founders try to fix monetization first because revenue is the visible problem. The framework says don't. Per the funnel-order rule: don't propose Monetization-stage work on a site with no Acquisition. The math doesn't support it.

Diagnose Acquisition first. If <1,000 sessions/mo: ignore Monetization. If 1,000-5,000: basic AdSense + maybe affiliate. If 5,000+: optimize pricing, expand to subscription tiers, add usage-based billing. The order matters.

Previous: Factor 5 — Advocacy. Next: Factor 7 — Performance. Or run the full 7-factor audit.