Crowdfunding Sites You Love Micropayments  for Digital Goods in a  Social World Presentation for EuroFinance 2009 by Cynth...
For news and content sites, advertising is not paying the bills.   The Problem
Theorem Anything that can be digitized will be napsterized Newspapers Magazines  Books Music Photos, Images, Art Video, TV...
Micropayments sound good BUT… “… the act of buying anything, even if the price is very small, creates what Nick Szabo call...
individual consumer/ user producer Whose value system is applied? Ease of use (reduction in “mental transaction costs”) di...
How Kachingle “Automates” Micropayments
Are there parameters for success in the implementation of consumer micropayment systems? <ul><li>user-centric </li></ul><u...
What will consumers pay for  (using micropayments)? <ul><li>Persona development (and control)  [Kachingle] </li></ul><ul><...
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Kachingle presentation at EuroFinance 2009

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Cynthia's presentation at EuroFinance 09 on 10/22/09 (slightly modified).

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Kachingle presentation at EuroFinance 2009

  1. 1. Crowdfunding Sites You Love Micropayments for Digital Goods in a Social World Presentation for EuroFinance 2009 by Cynthia Typaldos, Founder & President, Kachingle 10001001010011001001000100101111100011001010001010010100010000100000…
  2. 2. For news and content sites, advertising is not paying the bills. The Problem
  3. 3. Theorem Anything that can be digitized will be napsterized Newspapers Magazines Books Music Photos, Images, Art Video, TV, Movies 10001001010011001001000100101111100011001010001010010100010000100000… FREE! Previously - $$$$ or € or ¥ or..
  4. 4. Micropayments sound good BUT… “… the act of buying anything, even if the price is very small, creates what Nick Szabo calls mental transaction costs , the energy required to decide whether something is worth buying or not, regardless of price.” “… beneath a certain threshold, mental transaction costs actually rise , a phenomenon is especially significant for information goods. It's easy to think a newspaper is worth a dollar, but is each article worth half a penny? Is each word worth a thousandth of a penny? A newspaper, exposed to the logic of micropayments, becomes impossible to value.” — Clay Shirky http://www.shirky.com/writings/fame_vs_fortune.html
  5. 5. individual consumer/ user producer Whose value system is applied? Ease of use (reduction in “mental transaction costs”) difficult effortless Micropayments <ul><li>Decide each time </li></ul><ul><li>At price set by producer </li></ul><ul><li>No financial limits </li></ul><ul><li>Encourages copycat sites </li></ul><ul><li>Creates barriers for viral & social behaviors </li></ul><ul><li>Negatively affects ad revenue </li></ul>beside advertising…what are the choices? <ul><li>Decide each time </li></ul><ul><li>At a price explicitly set by user </li></ul><ul><li>No financial limits </li></ul><ul><li>Co-exists with advertising </li></ul><ul><li>Enables viral & social behaviors </li></ul>Tipping Subscriptions <ul><li>Decide once (for each subscription) </li></ul><ul><li>At price set by producer </li></ul><ul><li>No financial limits </li></ul><ul><li>Encourages copycat sites </li></ul><ul><li>Negatively affects ad revenue </li></ul><ul><li>Creates barriers for viral & social behaviors </li></ul>Kachingling <ul><li>Decide once (for everything) </li></ul><ul><li>At a price implicitly set by user (equitably distributed) </li></ul><ul><li>Financial limits (bounded total $) </li></ul><ul><li>Co-exists with advertising </li></ul><ul><li>Enables viral & social behaviors </li></ul><ul><li>Social recognition & association </li></ul>
  6. 6. How Kachingle “Automates” Micropayments
  7. 7. Are there parameters for success in the implementation of consumer micropayment systems? <ul><li>user-centric </li></ul><ul><li>no “mental transaction costs” </li></ul><ul><li>tap into existing social networks </li></ul><ul><li>financial transparency </li></ul><ul><li>fun, entertaining, like a game </li></ul>
  8. 8. What will consumers pay for (using micropayments)? <ul><li>Persona development (and control) [Kachingle] </li></ul><ul><li>Convenience [iTunes] </li></ul><ul><li>Special Features [Game tool upgrades] </li></ul><ul><li>Virtual Goods [Facebook flowers] </li></ul><ul><li>Other? </li></ul>

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