Kachingle presentation at EuroFinance 2009

Crowdfunding Sites You Love Micropayments for Digital Goods in a Social World Presentation for EuroFinance 2009 by Cynthia Typaldos, Founder & President, Kachingle 10001001010011001001000100101111100011001010001010010100010000100000…

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, Movies 10001001010011001001000100101111100011001010001010010100010000100000… FREE! Previously - $$$$ or € or ¥ or..

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

individual consumer/ user producer Whose value system is applied? Ease of use (reduction in “mental transaction costs”) difficult effortless Micropayments
Decide each time
At price set by producer
No financial limits
Encourages copycat sites
Creates barriers for viral & social behaviors
Negatively affects ad revenue
beside advertising…what are the choices?
Decide each time
At a price explicitly set by user
No financial limits
Co-exists with advertising
Enables viral & social behaviors
Tipping Subscriptions
Decide once (for each subscription)
At price set by producer
No financial limits
Encourages copycat sites
Negatively affects ad revenue
Creates barriers for viral & social behaviors
Kachingling
Decide once (for everything)
At a price implicitly set by user (equitably distributed)
Financial limits (bounded total $)
Co-exists with advertising
Enables viral & social behaviors
Social recognition & association

How Kachingle “Automates” Micropayments

Are there parameters for success in the implementation of consumer micropayment systems?
user-centric
no “mental transaction costs”
tap into existing social networks
financial transparency
fun, entertaining, like a game

What will consumers pay for (using micropayments)?
Persona development (and control) [Kachingle]
Convenience [iTunes]
Special Features [Game tool upgrades]
Virtual Goods [Facebook flowers]
Other?

http://www.kachingle.com	290
http://carta.info	262
http://scinfolex.wordpress.com	257
http://kachingle.com	111
http://beta.kachingle.com	26
http://www.blogh.de	10
http://dev4.kachingle.net	8
https://beta.kachingle.com	7
http://blogh.de	6
http://jlfl-jlfl.blogspot.com	5
http://www.johntedesco.net	5
http://www.netvibes.com	4
http://johntedesco.net	4
http://blog.kachingle.com	4
http://staging.kachingle.com	4
http://dev7.kachingle.net	3
url_unknown	3
http://dev8.kachingle.net	3
http://themirrorbykachingle.blogspot.com	2
http://translate.googleusercontent.com	2
http://www.slideshare.net	2
http://www.thinkabout.ch	1
https://www.kachingle.com	1
http://phpstaging.kachingle.com	1
http://dev.kachingle.net	1
http://thinkabout.ch	1

Kachingle presentation at EuroFinance 2009

by Kachingle on Oct 22, 2009

Accessibility

Categories

Tags

Upload Details

Usage Rights

26 Embeds 1,023

Statistics

Kachingle presentation at EuroFinance 2009 — Presentation Transcript