1. The Internet Pricing Dilemma: Example
18 cents per viewer per hour
This is the average prime time television ad
revenue for NBC, ABC, CBS and Fox
If there was a convenient, low cost way
for viewers to pay 25 cents directly to the
networks, they could be profitable without
embedded advertising.
2. Fair Market Pricing of Electronic
Content is Distorted by Credit Cards
The Pricing & Ease of Use Obstacle
Typical credit card fees (25 cents plus 3%)
Cards are also inconvenient for low value transactions
Consumers have a low perception of value on
electronic content.
Music, clip art, magazine articles, apps and video with a
perceived value between 5 and 50 cents cannot be
priced accordingly--due to the minimum 25 cent credit
card fee.
3. Why Micropay Solutions Have Failed
Critical Mass Dilemma
Content providers were slow to adopt micropay
platforms when too few consumers had accounts
Consumers didn’t want to pre-fund account when
there is limited content to buy.
A $10 deposit doesn’t feel like a micropayment. It
feels like a risk.
Previous micropay efforts also pre-dated
streaming video—with higher perceived value.
Previous platforms gave no extra benefits. Just
another payment option.
4. Patented 2-Way Micropay Solution
Solves the Micropay Dilemma
• The first micropay platform that allows
users to both spend and receive money.
Eliminates need to prefund accounts
Gives many added benefits to users, including
over $100 per year in “free money”
Gives content providers added value
Eliminates consumer’s privacy and access
concerns
5. Priming the Pump -- How It Works
As soon as users create a
free account they begin to Consumers
get a stream of “free
money” every time they see
an ad in our ad network. $ $
These “free” ad dollars can
then be used to buy the Advertisers Content
content they want with as Providers
little as two clicks.
No need to pre-fund the account
Feelings of instant gratification.
6. Everyone Shares the Benefits from
Superior Market Data
We accumulate marketing data on
purchases made, ads viewed, and
interactions with advertisers and content
providers, plus volunteered information.
Consumers have a means and motivation
to allow us to accumulate and disseminate
marketing data because they make more
money every time their profiles are used.
7. Empowering Consumers to Monetize
Their Own Market Profiles
Consumers earn 85% of marketing dollars spent
to capture their time and attention
Each user can set different receipt charges by
commercial categories or different people
Example: 5 cents for offers related to movies
$1.50 for offers related to investment newsletters
Free for Mom, 10 cents for Bob, $1 for unknown people
Users can block specific categories or individual
senders
8. Two Way Flow of Funds
With Any Electronic Communication
$
User User
$
User Business
$
Business Business
E-Mail Mobile Hyper-Links Ad Networks
9. Accounting and Fee Structure
Track all transactions, balances, and fees to
1/100th of a penny.
Transactions as small as one penny are allowed.
If it isn’t worth 1 cent, it’s not worth clicking on.
Now newspapers can finally make money again.
Our fee: 15% of first $2 (plus 3% over if $2)
15% from consumer viewing an ad
15% from content provider when consumer spends
her “free” ad money
10. Risk Mitigation
Micro-payments have micro-risk
Consumers and vendors are contractually
required to bear that micro-risk
Vendor tools for issuing refund
Consumer tools for registering complaints
As the service provider, we reserve the
option to investigate and reverse charges,
but there is no obligation to do so.
11. Example Direct Marketing E-Mail
Direct marketing campaign authorizes up to 7
cents delivery fee per person on selected list.
User A requires 5 cents.
After confirmed delivery of message, receives 5 cents.
Excess 2 cents refunded to advertiser.
Payments are always contingent on confirmed
delivery.
12. Multiple Ways to Earn Money &
Reward Consumer Behaviors
Example: As a Universal Loyalty /
Reward Points Platform
Rewards programs typically have delayed
gratification
Linking rewards to 2-Way Micropay payments
satisfies consumer’s desire for instant
gratification
13. Micro-Affiliate AutoSplit Example
Record label allows referral fees
Ted adds his Qixit ID to end of referral link
www.MusicLabel.com/RedRain321&Ted21
Jenny buy’s through Ted’s link, generating an
automated three way split of the payment
20% goes to Ted’s account for the referral
15% goes to the band, RedRain
65% goes to the distributor, MusicLabel.com
Qixit earns 15% from each recipient of funds
14. Advertiser Benefits
RECEPTIVE PROSPECTS
Buy immediate good will and receptivity
FRAUD PREVENTION
Limit how often viewer can get paid.
BUILD BETTER LISTS
Better data and permission granted follow-up contact info.
LASER TARGETED PROSPECT LISTS
Find recent buyers within any demographic
15. Everyone’s Time Tension
oking for Balance
Lo
Desire to Block
Desire to be Distractions
Accessible
The Qixit Solution: Auto-Negotiated Availability
Parties negotiate mutually agreeable price for gaining access
to a each other’s time and attention.
16. Controlled Access – User Benefit
Facebook Experiment
$1 charge to email a Facebook user who is not
a friend
$100 to email CEO, Mark Zuckerberg
Initial blog reaction: Users feel exploited.
Facebook users would feel enriched if
they were paid 85% of the charge . . .
especially if they could set their own rate.
17. 2-Way Micropay is your . . .
Personal Secretary: We screen both personal
and commercial communications, allowing
through only those that meet your threshold of
interest . . . in other words, those which pay for
your time and attention at the rates you set.
Market Identity Broker: We increase the value
of your time and attention, and how much you
can earn, by tracking and disseminating your
market profile, allowing companies to use it only
when you are paid the rates you set.
18. Preparing the Way to Universal Market
Profile Data Sharing
Most valuable marketing data is that identifying “recent
buying behavior”
Banks and credit card companies have the most
valuable marketing data of all – but it is not for sale.
Using the 2-Way Micropay model to compensate
consumers each time their data is used, consumers may
opt in to make all data on their purchases accessible as
part of their market profiles—in return for more money!
19. 2-Way Micropay is Disruptive Across
Multiple Markets
Secure
Financial Messaging Spam
Transactions Prevention
Pay to Read E-Messaging Privacy
Ads Protection
E-Payment E-Marketing
Market
Ad Delivery Research
Mobile Payments & List
Mobile Marketing Brokers
20. Current Status
Our functional platform is up and running in
beta.
www.2WayMicropay.com
www.Qixit.com
We are seeking
Joint venture partners
Key personnel for management
Qualified investors
David Reardon, CEO reardond@qixit.net (636) 486-6918
Editor's Notes
Let ’s begin with a quick example of why traditional financial transaction methods are hampering Internet commerce. The average prime time TV program on major networks bring in just 18 cents per hour per viewer in advertising revenue. This tells us something about the real fair market value of electronic content. An hour of streaming video should cost less than 50 cents. Redbox rental fees tell us the same thing.
If there was a convenient, low cost way for viewers to pay 25 cents directly to the networks for an hour of viewing, they could be profitable without embedded advertising. But the high cost of credit card transaction fees, a minimum of 25 cents per transaction, makes it impossible to sell electronic content at a price points that is super attractive to consumers.
What the Internet has long needed is a universal, easy to use Micropay platform to easily exchange nickels and dimes. But previous micropay solutions have all floundered on the chicken and egg problem. Users are unwilling to pre-fund a micropay account with $10 or more if there are not enough content providers using the platform. Without a large base of user, content providers won ’t commit to the platform either.
Our new, patented, and operational payment platform eliminates the need to prefund accounts because it is the first micropay solution which allows users to both spend and receive money. Even more importantly, we give users multiple ways of earning “free money” to subsidize their micropay purchases. This no-risk experience makes it easy to acquire users and therefore easier to attract content providers.
As soon as users create a free account they begin to get a stream of “free money” every time they see an ad in our ad network. These “free” ad dollars can then be used to buy the content they want with as little as two clicks. So the user experience is one of instant gratification -- with no risk. They get free money and they get to buy access to movies, music, apps or games.
And the way we keep free money coming to our users is by collecting marketing data on every purchase they make, plus on all of their interactions with the ads they see. Instead of feeling like we are violating their privacy, our users view us as their partners . . . Helping them to monetize something they have always had but never before controlled – their own, individual market identity.
Our users aren ’t just partners, they’re in the driver’s seat. They get to keep 85% of the ad dollars spent to capture their time and attention. Plus, they can set different receipt charges for different ad categories and different individuals, to make themselves more or less accessible depending on who is contacting them and why.
Each user can spend and receive money on multiple platforms, through email, cell phones, and through any hyperlink. In addition to setting a receipt charge to block or accept messages, the same platform can be to send additional funds --from one cent to thousands of dollars--with equal ease and security. For example, two individuals can use it make a payment for an eBay sale.
To minimize our impact on market driven pricing, we track all transactions, balances, and fees to one-hundredth of a cent. This allows web sites to experiment with pricing as low as 1 cent per click. We collect 15% of the first $2 in exchanged, plus 3% for amounts over $2. This is comparable to credit card fees at the $2 mark, but much more competitive at amounts under $1.
Now one concern regarding billions of micropayments surrounds liability for customer complaints. Our solution is to NOT offer the kind of dispute resolution services given by credit card companies. Below our defined threshold, these are micro-payments and our users are contractually required to accept the micro-risks associated with disputed or failed transactions.
In every transaction, the person paying for delivery gets his monies worth and pays no more than is necessary. For example, if the recipient requires only 5 cents for a certain type of ad but the advertiser authorized up to 7 cents, the two extra cents go back to the advertiser. And if the recipient doesn ’t see the ad before the expiration date, the message is deleted and the money goes back to the advertiser.
Because this platform supports micro-transactions as small as one cent, it can be used in multiple ways to reward and incentivize any number of consumer behaviors. For example, it can easily become the mainstay for a customer loyalty or rewards program. In fact, consumers might prefer rewards in the form of cash micropayments that be instantly used to buy online purchase – like tonight ’s movie.
Here ’s another way in which micro-pay can be used to reward consumers and generate more sales. For example, a record company can reward fans for recommending a favorite song on their Facebook page with a share of any sales their link generates. All a users needs to do is to append her Qixit ID to the link. If a purchase is made, we automatically split the proceeds as required.
Paying consumers for their time and attention helps to build good will. Even a token payment makes a person feel their time and attention is respected. But we also give advertisers accurate demographics and follow-up information on every viewer of their ads. This helps them better target follow-ups to their prime prospects. Plus we have multiple tools for advertisers to screen out the leeches.
In short, we are addressing a fundamental human conflict. On one hand, we all want to be available to those unexpected people and offers that can contribute value to our lives. On the other hand, we are also suffering from information overload and want to screen out people and offers that DON ’T add value. By empowering each user to put an actual price on his own time and attention we make it easier to adjust this balance.
A prime example of companies ignoring this insight is found in Facebook ’s new experiment with paid email. They are allowing non-friends to buy access to your Facebook email for $1 – or in Mark Zuckerberg’s case $100. Unfortunately, Facebook isn ’t sharing this income with its users. If they did, I guarantee user reaction to a paid email would be much more positive.
In short, 2-Way Micropay is like a personal secretary – screening out communications that don ’t add enough value to your life to be worth your time and attention. Better yet, this personal secretary pays you! It ’s also like having your own market identity broker. We gather and disseminate your market profile in ways intended to help you earn more while seeing fewer, more relevant ads.
Disruptive because we ’re creating new partnership opportunities between consumers and businesses. Empowering consumers to monetize their time and attention and giving businesses better market data so they know whose time and attention is worth buying.
Finally, our technology is truly disruptive because it tightly integrates electronic messaging, payments, and marketing into a single platform. From these three prongs, it lies at the nexus of all business activities and can serve and penetrate many markets, just a few of which are shown here.
Our patented technology is operating on a functional platform. Please check it out at your convenience. We are based here in St. Louis and are looking for joint venture partners, key personnel for management, and qualified investors. Thank you for your time and attention.
