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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..
[object Object],[object Object],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 ,[object Object],[object Object],[object Object],[object Object],[object Object],Kachingle, business model of choice  for the “FREE” ,[object Object],[object Object],[object Object],[object Object],[object Object],Tipping Subscriptions ,[object Object],[object Object],[object Object],[object Object],[object Object],Kachingling (crowdfunding) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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? ,[object Object],[object Object],[object Object],[object Object],[object Object],These are Kachingle’s Guiding Principles!
[object Object],[object Object],[object Object],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
Joining a Community
Social Networking Integration ,[object Object],[object Object],[object Object]
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

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Kachingle Site Presentation 1.18.10

  • 1. Site Presentation The Platform for Voluntary Payments in the Digital World of “FREE” 10001001010011001001000100101111100011001010001010010100010000100000…
  • 2. For news/content sites, advertising-based business models are not enough to pay the bills. Example of the Problem to Solve
  • 3. 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..
  • 4.
  • 5. Beside advertising…what are the choices? Micropayments Tipping Subscriptions Kachingling
  • 6.
  • 7. 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
  • 8.
  • 9.
  • 10. Go to live site if internet access available
  • 11. Site Owners just add a Kachingle medallion to their site
  • 12. The Kachingle Medallion - off … when one decides to kachingle a site
  • 16.
  • 17. 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
  • 18. 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