760Re: [decentralization] Pricing and micropayments
- Dec 1, 2000
> 1.User clicks on a linkInterestingly, steps 1-3 work now, and generate revenue in the
> 2.Popup says "You will be charged $0.15 to access this
> site for one month, starting today"
> 3.User agrees
hundreds of millions of dollars annually for the pornography industry.
"If you want access for a month to 'Frothing Sex Weasels', enter your
CC#/Pr0n-Pass ID<tm> here..."
Note that because the porn sites use no infrastructure not available
to the industry at large, a possible conclusion is that everyone
charges what the market will bear. For FrothingSexWeasel.com, that's
$19.95 a month, and for C|Net its bupkis.
Note also that the argument that there isn't a financial
infrastructure to process $0.15 transactions doesn't affect sites'
ability to aggregate weekly subscriptinos into montly ones etc etc.
There is enough infrastructure in place to process $1+ transactions
(i.e. the annualized equivalent of 8.5 cents a month), and if users
wanted to use those systems QPass would have a jillion dollar market
> 4.Charge is added to his ISP bill (ISP receives someWatch Deutsch Telecom and Nokia. Both are making huge plays in the
> sort of payment for hosting the charge)
"You don't need a credit card, you can just bill it back to your phone
This is irrelevant to the micropayment conversation, of course, but
its going to be an interesting fight if you like watching financial
> 5.If applicable, email reminder sent 3 days beforeYou wouldn't last 5 minutes as a marketing director.
> access is lost to remind user to renew
One of the reasons micropayments have historically failed relative to
the competition is that the competition knows enough to adopt the Ron
Popeil "Just set it and forget it" model -- sign up now, and let us
know if you ever want to opt *out* of the system, otehrwise we will
continue bleeding you for $4.95 a month unto the 4th and 5th
Clay Shirky | Essays on the Internet
http://www.shirky.com/writings/what_is_p2p.html | What is P2P?
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