Kachingle Presentation at EPCA Payment Conference March 2010

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Kachingle Presentation at EPCA Payment Conference March 2010 London

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Kachingle Presentation at EPCA Payment Conference March 2010

  1. 1. The Payment Platform for Online Content & Services in the World of “FREE”<br />www.kachingle.com<br />Presented at EPCA Payment Conference March 2010, London<br />
  2. 2. Problem to Solve<br />For most news/content sites, advertising-based business models are not enough to pay the bills.<br />
  3. 3. Paywalls and moving content to iPhone, Kindle or iPad are just plugging holes in the dike…<br />NewsDay (2 million UVs): 35 subscriptions in 3 months<br />
  4. 4. We now live in the world of “FREE”!<br />Anything that can be digitized will be “napsterized”<br />Newspapers<br />Magazines<br />Books<br />Music<br />Photos, Images, Art<br />Video, TV, Movies<br />$, €, ¥<br />Before<br />FREE!<br />Now<br />
  5. 5. Micropayments sound logical BUT…<br />“…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”<br />— Clay Shirky<br />http://www.shirky.com/writings/fame_vs_fortune.html<br />
  6. 6. So how about using Kachingle?<br />Kachingle<br />Subscriptions<br />Micropayments<br />Tipping<br />
  7. 7. Site Owners just add a Kachingle medallion to their site<br />
  8. 8. The Consumer Side of Kachingling<br />Via the medallion, sign up for a Kachingle account and commit to a $5/month withdrawal from a Paypal account<br />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<br />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<br />
  9. 9. The Kachingle Medallion<br />After<br />Before<br />… when one decides to kachingle a site<br />
  10. 10. Social Media Integration<br />Push status updates through microblogging sites<br /> (e.g. Twitter and Facebook status integration)<br />Additional Planned social media applications:<br />Facebook app for comparing your contributions to friends and expressing your values<br />iPhone app:<br />Live access to statistics<br />Compare your behavior to others<br />
  11. 11. Site Owner : CASH + Marketing Benefits <br />Cash payments (in complement of advertising revenues)<br />Free viral promotion/traffic thru social network effects<br />Component for community development<br />Benchmark against competitors<br />Evaluation of readers’ interest for the content (several medallions can be used on one web site)<br />Higher per click value for ad real estate<br />
  12. 12. Why would People Pay for FREE content?<br />To build an online persona, achieve recognition, gain status …<br />…. or to support a cause<br />
  13. 13. COMPLETE Financial Transparency<br />Necessary Counterpart to Altruism to build Trust<br />Every operation is recorded and can be tracked down<br />Consumer’s Payment page shows sites that received part of the $5 contribution<br />Sites see the same page and know how much money they are supposed to get<br />
  14. 14. “When it comes to online news, Britons are shamelessly promiscuous”<br />The Economist<br />To get informed we have massively switched to the web,<br /><ul><li>consulting more sources,
  15. 15. spending less time on each one of them, and
  16. 16. doing it somewhat randomly</li></ul>Sources: Oliver & Ohlbaum, The Economist<br />
  17. 17. What are the likely Qualities for the success of Business Models<br />relying on Voluntary Payments?<br /> user-centric<br /> no “mental transaction costs”<br /> tap into existing social networks<br /> financial transparency<br /> fun, entertaining, like a game<br />These are Kachingle’s Guiding Principles!<br />
  18. 18. Business Model<br />Today<br />$4 – Web Sites<br />$5<br />$5<br />$20<br />$0.5 – Paypal<br />$0.5 – Kachingle<br />Tomorrow<br />Music, video, etc..<br />News/Blogs<br />
  19. 19. Kachingle, business model of choice for the world of “FREE”<br />Tipping<br />Kachingling (crowdfunding)<br /><ul><li>Decide each time
  20. 20. At a price explicitly set by user
  21. 21. No financial limits
  22. 22. Co-exists with advertising
  23. 23. Enables viral & social behaviors
  24. 24. Decide once (for everything)
  25. 25. At a price implicitly set by user (equitably distributed)
  26. 26. Financial limits (bounded total $)
  27. 27. Co-exists with advertising
  28. 28. Enables viral & social behaviors
  29. 29. Social recognition & association</li></ul>consumer/ user<br />Micropayments<br />Subscriptions<br />Whosevalue system is applied?<br /><ul><li>Decide each time
  30. 30. At price set by producer
  31. 31. No financial limits
  32. 32. Encourages copycat sites (e.g. music biz)
  33. 33. Creates barriers for viral & social behaviors
  34. 34. Decide once (for each subscription)
  35. 35. At price set by producer
  36. 36. No financial limits
  37. 37. Encourages copycat sites (e.g. music biz)
  38. 38. Creates barriers for viral & social behaviors</li></ul>producer<br />difficult<br />effortless<br />Ease of use (reduction in “mental transaction costs”)<br />
  39. 39. Blogs<br />Local News:<br /><ul><li>Big Green Boulder
  40. 40. Blog Peoria
  41. 41. Chicago Talks
  42. 42. Daily Camera
  43. 43. West Texas Weekly</li></ul>Investigative:<br /><ul><li>Carta
  44. 44. Center for Investigative Reporting
  45. 45. Common Language Project
  46. 46. Daily Monthly
  47. 47. Pulitzer Center
  48. 48. Unfree Media</li></li></ul><li>March 17th, 2010: Kachingle makes first “social cents” payments<br />Carta: $111.06<br />“My blog earned $65.08 via crowdfunding!” – Steve Outing<br />
  49. 49. Vielen Dank! Thank You! Merci!<br />Yves Huin, Director Kachingle Europe<br />yves.huin@kachingle.com<br />http://www.kachingle.com<br />

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