Monetization metrics measure how effectively a product generates revenue from user activities and behaviors. These metrics combine conversion rates, purchase values, and transaction patterns to evaluate overall monetization health. Common measurements include conversion rate from free to paid users, average transaction value, purchase frequency, and revenue per active user.

Product teams can use these metrics to identify revenue bottlenecks and opportunities. For example, a product might track that 5% of free users convert to paid plans, paid users purchase add-ons every 45 days on average, and premium features generate $3.20 per user session. These insights guide pricing strategies, feature development priorities, and marketing campaigns.

Regular monitoring of monetization metrics helps detect early warning signs of revenue issues and validate business model changes. Segmenting these metrics by user type, acquisition channel, or geographic region provides deeper insights into which aspects of the product drive the most revenue growth.