Monetize

See Also:
Current Assets
External Sources of Cash
Fixed Assets
Cash is in Your Business
Track Money In and Out of a Company

Monetize Definition

Monetizing is the act of converting an item into cash usually a bank note or some other certificate that is readily convertible at a bank into cash. However, there are also projects that can be monetized. That may include a website or maybe a book that an author is working on.

Monetize Meaning

Monetization means that a person is converting something into cash. Monetization methods could simply be a television that is sold at a pawn store to a debt instrument sold in the market. Regardless of what the convertible is, the final part of the process is a conversion whereby the final product is either legal tender or cash. Monetization often occurs with governments where the government will issue treasury securities in exchange for cash. Corporations will also use this type of monetization financing to support their operations.

Monetize Example

For example, Jim is currently working on monetizing a website that he created and worked on for over a year. He has finally reached the desired amount of traffic on the website, and has begun to implement his monetization strategies. As soon as the website starts making money for Jim monetization has officially started. Although it may be unclear for something like a website to readily value the amount of cash that will be received via the website. A debt instrument is much more liquid. It can be readily valued according to its interest rate and principal price. Likewise, you can readily value a treasury security. Therefore the act of monetization can occur overtime rather than the immediate returns by liquidating a television or a debt instrument.
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