Kachingle presentation at Social Bar Meeting Berlin June 1, 2010

The Social Payment Platform for Online Content & Services in the World of “FREE”Social Bar, BerlinJune 1, 2010
Cynthia Typaldos, Founder
9/22/09 9:43pm PST

What will it take for Social Payments to succeed?
user-centric
no “mental transaction costs”
tap into existing social networks
financial transparency
fun, entertaining, like a game
These are Kachingle’s Guiding Principles!

Why would People Pay for FREE content?
To build an online persona, achieve recognition, gain status …
…. and to support a “voice”

What is Kachingle?
Kachingle
Subscriptions
Micropayments
Tipping

The Consumer Side of Kachingling
Via the medallion, sign up for a Kachingle account and commit to a $5/month withdrawal from a Paypal account
Whenever you encounter a Kachingle-enabled site, that you like and want to support, mouse over the Kachingle medallion and just click “Kachingle this website”, once
At the end of each month, your contribution is shared among all sites that you “kachingled” during the period based on number of daily-visits to each kachingled site

Site Owners just add a Kachingle medallion to their site

The Kachingle Medallion
After
Before
… when one decides to kachingle a site

Social Media Integration
Push status updates through microblogging sites
(e.g. Twitter and Facebook status integration)
Additional Planned social media applications:
Facebook app for comparing your contributions to friends and expressing your values
iPhone app:
Live access to statistics
Compare your behavior to others

Vielen Dank!
Thank You!

March 17th, 2010: Kachingle makes first “social cents” payments
Carta:
Now at 201.48
“My blog earned $65.08 via crowdfunding!” – Steve Outing
Now at $136.03

Kachingle, business model of choice for the world of “FREE”
Tipping
Kachingling (crowdfunding)
Decide each time
At a price explicitly set by user
No financial limits
Co-exists with advertising
Enables viral & social behaviors
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
consumer/ user
Micropayments
Subscriptions
Whosevalue system is applied?
Decide each time
At price set by producer
No financial limits
Encourages copycat sites (e.g. music biz)
Creates barriers for viral & social behaviors
Decide once (for each subscription)
At price set by producer
No financial limits
Encourages copycat sites (e.g. music biz)
Creates barriers for viral & social behaviors
producer
difficult
effortless
Ease of use (reduction in “mental transaction costs”)

Problem to Solve
For most news/content sites, advertising-based business models are not enough to pay the bills.

Paywalls and moving content to iPhone, Kindle or iPad are just plugging holes in the dike…

COMPLETE Financial Transparency
Necessary Counterpart to Altruism to build Trust
Every operation is recorded and can be tracked down
Consumer’s Payment page shows sites that received part of the $5 contribution
Sites see the same page and know how much money they are supposed to get

We now live in the world of “FREE”!
Anything that can be digitized will be “napsterized”
Newspapers
Magazines
Books
Music
Photos, Images, Art
Video, TV, Movies
$, €, ¥
Before
FREE!
Now

More choices sound great BUT…
“Why more is less”
— Barry Schwartz
http://www.shirky.com/writings/fame_vs_fortune.html

Micropayments sound great 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”
— Clay Shirky

Users want to make their own decisions BUT…
Experiment with musician in subway station
— Robert Cialdini

Users may not trust a new service, a 3rd party in between BUT…
“...if they knew for sure there money was absolutely, positively going where they want it to, that would make a difference”
— Cynthia

Users don’t want work BUT…
They want to have fun!
— Bunny the K9 Kachingler

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Kachingle presentation at Social Bar Meeting Berlin June 1, 2010

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Kachingle presentation at Social Bar Meeting Berlin June 1, 2010 — Presentation Transcript