Reading time: 7min

1. Monetize

Stage: 1

Stage Overview

What to do: Monetize

Your role: Starter

Headcount : 1

Leadership Structure : Still just you.

Companies at this stage : 30,000,000 (100% achieve this level) only 9% of people own a business.

Area	Constraints	To Graduate
Product	Not good enough to sell.	Fix it until it's good enough to sell. Make V1 product.
Marketing	No one knows you have paid stuff for sale.	Tell people you have paid stuff. Sign up for free ad spend credits.
Sales	You still don't know how to sell.	Use good results from free people to sell paid people.
Customer Service	Free customers don't like it or use it.	Figure out all hidden costs (why they don't like it/use it) by talking to them.
Information Tech (IT)	You have no basic software/tools or social media.	Figure out the (free) software you need by joining free groups and reading online forums.
Recruiting	You don't know how to do something or have the time to do it.	Reach out to people you know to help you OR use freelancer platforms to get help.
Human Resources (HR)	You pay money to freelancers to get work done and don't get what you want.	Create basic vendor agreements and expectations.
Finance	You have no way to collect money.	Set up a payment processor. Run a payment. Get a deposit.

Bottom line: Your business makes no money.

Graduate by: Make your first sale.

When you hit “Stage 1. Monetize”

You’ve graduated from giving stuff away for free, and now it’s time to start making actual money. Think of this like moving from cooking free meals for friends to opening a small food stand where people actually pay for your food.

The big picture:

At this stage, you’re still just one person, but now you’re what we call a “starter”. Someone who’s starting to turn their idea into a real business. About 30 million people reach this stage, but only 9% of people (in the US) actually own a business. It’s like being in the kitchen by yourself, learning to cook and serve customers at the same time.

Your Main Challenge: Product

Your biggest problem right now is that your product or service isn’t quite good enough for people to pay for yet. Maybe your food tastes good, but the portions are messy, or maybe your computer repair service works but takes too long. You need to fix these issues until people think, “Yes, this is worth paying for!”

The key is to make what we call a “Version 1” or “v1” product.

This doesn’t mean it has to be perfect. It just needs to be good enough that people will pay for it. Think of it like making a sandwich that’s good enough to sell at a food truck, even if it’s not fancy restaurant quality yet.

Marketing Challenges

Now comes a tricky part: telling people you’re charging money for something that used to be free. It’s like telling your friends who used to get free sandwiches that now they need to pay.

You need to:

Let people know you’re selling something
Explain why it’s worth paying for
Sign up for free advertising credits on platforms like Google or Facebook
Show how your paid version is better than the free one was

Sales Challenges

You probably don’t know much about selling yet, and that’s okay!

The best approach is to:

Use results from your free customers as proof (“Look how much this helped them!”)
Talk to people about their problems and show how you can solve them
Start with people who already liked your free stuff
Be honest about what you’re offering and what it costs

Customer Service

Your free customers helped you learn, but paying customers are different.

They:

Have higher expectations
Are more likely to complain
Need more attention
Want better results

Your job is to figure out why people might not like or use your product. Maybe your computer repair service takes too long, or maybe your sandwich packaging leaks. You need to find these “hidden costs”: the things that make customers unhappy even if they don’t tell you directly.

Technology Needs

You probably can’t afford fancy software yet, but you can:

Join free online groups to learn what tools others use
Read forums about your industry
Use free trials of basic software
Start with free tools like Google’s business tools

Getting Help

You’re going to realize you can’t do everything yourself. When this happens:

Reach out to people you know who might help
Use websites like Upwork, Fiverr, Malt, ..., to find freelancers
Start small with part-time help
Be clear about what you need done

Managing Money

This is crucial.

You need to:

Set up a way to collect payments (like Square or PayPal)
Actually run a real payment through your system
Get your first paying customer’s money into your bank account
Keep track of who has paid and who hasn’t

Protecting Yourself

When money starts flowing, you need to:

Create basic agreements with anyone helping you
Set clear expectations with freelancers
Get everything in writing
Make sure you understand what you’re agreeing to

The Human Side

During this stage, you’ll feel:

Nervous about charging money
Worried about whether people will pay
Excited when you get your first sale
Overwhelmed by all the new things to learn
Proud when someone says yes to paying

The Secret to Success at Stage 1

Your daily focus should be:

Making your product/service better
Telling people about your paid offering
Protect your business
Taking care of your first paying customers
Learning how to ask for money
Setting up basic business systems
Managing your money carefully

What success looks like

Signs you're doing it right:

People are actually paying you money
Customers are engaged
You’re learning from mistakes
Your systems are simple but working
You’re keeping track of money
You’re starting to understand what customers want

Signs you need more work:

People won’t pay your prices
Customers are unhappy
You’re losing track of payments
Things feel chaotic
You’re still doing everything for free

The Big Goal

Your main goal in Stage 1 is simple but crucial: make your first sale. Not just one sale, but consistent first sales to different customers. This proves that people will actually pay for what you’re offering.

Leveling up from Stage 1 to Stage 2

You'll know you're ready to move to “Stage 2. Advertise” when:

You're consistently making sales
People are willing to pay your prices
You have basic systems in place
You're keeping track of money
You understand what customers want
You're ready to start advertising

Remember:

Stage 1 is all about that crucial shift from free to paid. It’s about proving that you can create something people will actually pay for.

Don’t rush it.

This foundation is crucial for everything that comes next in your business journey.

This stage can feel scary and uncomfortable, but it’s where real businesses are born. Take it one step at a time, celebrate each sale, and learn from every mistake. You’re not just selling something now, you’re becoming a real business owner.