Startups succeed by uncovering a unique insight to create value for their users. This value creation is only sustainable if they can find a way to capture some of it themselves, i.e. monetize. This is just as true for startups built on network effects. However, they are more complex to monetize than traditional business models. This is because they primarily create value by connecting participants, not just by developing a standalone product. So in order for value creation to continue, their monetization model needs to be aligned with the incentives of all participants. As a result, the relationship between these participants exerts an outsized influence on the choice of monetization model.
