Kachingle Site Presentation 1.18.10

Site Presentation The Platform for Voluntary Payments in the Digital World of “FREE” 10001001010011001001000100101111100011001010001010010100010000100000…

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

But the Bigger Problem is… Anything that can be digitized will be napsterized Newspapers Magazines Books Music Photos, Images, Art Video, TV, Movies 10001001010011001001000100101111100011001010001010010100010000100000… FREE! Previously - $$$$ or € or ¥ or..

NOT content
BUT to build an online persona, achieve recognition, gain status – just like in the real world
What Will Consumers Pay For?

Beside advertising…what are the choices? Micropayments Tipping Subscriptions Kachingling

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 (e.g. music biz); does not coexist with ads
Creates barriers for viral & social behaviors
Kachingle, business model of choice for the “FREE”
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 (e.g. music biz); does not coexist with ads
Creates barriers for viral & social behaviors
Kachingling (crowdfunding)
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

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” — Clay Shirky http://www.shirky.com/writings/fame_vs_fortune.html

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!

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 visit often, 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
Kachingling

Go to live site if internet access available

Site Owners just add a Kachingle medallion to their site

The Kachingle Medallion - off … when one decides to kachingle a site

The Kachingle Medallion - on

Joining a Community

Social Networking Integration
Facebook application allows Kachinglers to display their list of content sites
Automated regular and appropriate tweeting by both Kachinglers and Content Providers
Generalized “where I kachingle” widget for display on other social networking sites (e.g. MySpace, blogs, etc.)

Kachingle to 'sprinkle' dollars to online publishers c|net May 8, 2009 Paul Romer , economist and senior fellow at the Stanford Center for International Development “ (Kachingle) doesn't try to solve the underlying free-rider problem. It tries to use volunteerism, altruism, and good citizenship instead. I like this aspect of the model. Economists and the policy makers who listen to them frequently underestimate the potential for this kind of motive to solve problems.” Kachingle is the economic model for free

Projected Kachingle Revenue for Content Producer (contentsite.com) with 1M unique visitors/month Year End Totals Description 1 2 3 4 5 6 Monthly unique visitors on contentsite.com (000s) 1,000 1,100 1,210 1,331 1,464 1,611 % using Kachingle 1, 5 2.0% 4.0% 5.0% 6.0% 7.0% 8.0% contentsite.com Kachinglers (000s) 20 44 61 80 102 129 Average Monthly Contribution $5 $10 $15 $20 $25 $25 % share to contentsite.com 2 30.0% 25.0% 20.0% 20.0% 20.0% 20.0% contentsite.com Monthly Share per Kachingler 5 $1.50 $2.50 $3.00 $4.00 $5.00 $5.00 Monthly Revenue ($000s) 3 $24 $88 $145 $256 $410 $515 Annual Revenue ($000s) $288 $1,056 $1,742 $3,067 $4,919 $6,184 Annual growth rate of uniques: 4 10.0% NOTES: 1) "% 'Kachingling'" shows rapid growth first two years from early adoptors within XAOB users 2) "% share to contentsitecom" falls first three years due to increasing pool of Kachingle content providers 3) Revenue after taking 20% transaction fee for Kachingle. Formula is (contentsite.com Kachinglers) * (contentsite.com monthly share) * .80 4) 10% annual growth in uniques in part due to viral growth of Kachingle use across all internet traffic (rising tide raises all boats) 5) Avery large complex site with a variety of sections and voices and numerous blogs will likely have multiple Kachingle Medallions

Kachingle Site Presentation 1.18.10

by Kachingle on Jan 18, 2010

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Kachingle Site Presentation 1.18.10 — Presentation Transcript

http://blog.kachingle.com	30
http://corporate-blog.kachingle.com	1