Kachingle Presentation at EPCA Payment Conference March 2010

The Payment Platform for Online Content & Services in the World of “FREE”
www.kachingle.com
Presented at EPCA Payment Conference March 2010, London

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…
NewsDay (2 million UVs): 35 subscriptions in 3 months

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

Micropayments sound logical 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
http://www.shirky.com/writings/fame_vs_fortune.html

So how about using Kachingle?
Kachingle
Subscriptions
Micropayments
Tipping

Site Owners just add a Kachingle medallion to their site

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 day-visits to each kachingled 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

Site Owner : CASH + Marketing Benefits
Cash payments (in complement of advertising revenues)
Free viral promotion/traffic thru social network effects
Component for community development
Benchmark against competitors
Evaluation of readers’ interest for the content (several medallions can be used on one web site)
Higher per click value for ad real estate

Why would People Pay for FREE content?
To build an online persona, achieve recognition, gain status …
…. or to support a cause

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

“When it comes to online news, Britons are shamelessly promiscuous”
The Economist
To get informed we have massively switched to the web,
consulting more sources,
spending less time on each one of them, and
doing it somewhat randomly
Sources: Oliver & Ohlbaum, The Economist

What are the likely Qualities for the success of Business Models
relying on Voluntary Payments?
user-centric
no “mental transaction costs”
tap into existing social networks
financial transparency
fun, entertaining, like a game
These are Kachingle’s Guiding Principles!

Business Model
Today
$4 – Web Sites
$5
$5
$20
$0.5 – Paypal
$0.5 – Kachingle
Tomorrow
Music, video, etc..
News/Blogs

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”)

Blogs
Local News:
Big Green Boulder
Blog Peoria
Chicago Talks
Daily Camera
West Texas Weekly
Investigative:
Carta
Center for Investigative Reporting
Common Language Project
Daily Monthly
Pulitzer Center
Unfree Media

March 17th, 2010: Kachingle makes first “social cents” payments
Carta: $111.06
“My blog earned $65.08 via crowdfunding!” – Steve Outing

Vielen Dank! Thank You! Merci!
Yves Huin, Director Kachingle Europe
yves.huin@kachingle.com
http://www.kachingle.com

Kachingle Presentation at EPCA Payment Conference March 2010

by Kachingle on Mar 26, 2010

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Kachingle Presentation at EPCA Payment Conference March 2010 — Presentation Transcript

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