kachingle presentation at epca payment conference march 2010
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Kachingle Presentation at EPCA Payment Conference March 2010 LondonTRANSCRIPT
www.kachingle.comwww.kachingle.com
Presented at EPCA Payment Conference March 2010, London
The Payment Platform for Online Content &
Services in the World of “FREE”
www.kachingle.com
www.kachingle.com
For most news/content sites, advertising-based business models are not enough to pay the bills.
Problem to Solve
www.kachingle.com
Paywalls and moving content
to iPhone, Kindle or iPad
are just plugging holes
in the dike…
NewsDay (2 million UVs): 35 subscriptions
in 3 months
www.kachingle.com
Newspapers
Magazines
Books
Music
Photos, Images, Art
Video, TV, Movies
We now live in the world of “FREE”!
FREE!
$, €, ¥Before
Now
Anything that can be digitized will be “napsterized”
www.kachingle.com
Micropayments sound logical 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
www.kachingle.com
So how about using Kachingle?
Tipping
Micropayments
Subscriptions
Kachingle
www.kachingle.com
● ____ __ ____ _____ ________ _____● Click to edit Master subtitle style
Site Owners just add a Kachingle medallion to their
site
www.kachingle.com
Via the medallion, sign up for a Kachingle account and commit to a $5/month withdrawal from a Paypal accountWhenever you encounter a Kachingle-enabled site, that you like and want to support, mouse over the Kachingle medallion and just click “Kachingle this website”, onceAt 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
The Consumer Side of Kachingling
www.kachingle.com
The Kachingle Medallion
… when one decides to kachingle a site
Before After
www.kachingle.com
Push status updates through microblogging sites(e.g. Twitter and Facebook status integration)
Additional Planned social media applications:Facebook app for comparing your contributions to friends and expressing your valuesiPhone app:
Live access to statisticsCompare your behavior to others
Social Media Integration
www.kachingle.com
Cash payments (in complement of advertising revenues)Free viral promotion/traffic thru social network effectsComponent for community developmentBenchmark against competitorsEvaluation of readers’ interest for the content (several medallions can be used on one web site)Higher per click value for ad real estate
Site Owner : CASH + Marketing Benefits
www.kachingle.com
To build an online persona, achieve recognition, gain status …
Why would People Pay for FREE content?
…. or to support a cause
www.kachingle.com
COMPLETE Financial Transparency
Necessary Counterpart to Altruism to build TrustEvery operation is recorded and can be tracked downConsumer’s Payment page shows sites that received part of the $5 contributionSites see the same page and know how much money they are supposed to get
www.kachingle.com
“When it comes to online news, Britons are shamelessly
promiscuous”
Sources: Oliver & Ohlbaum, The Economist
consulting more sources,
spending less time on each one of them, and
doing it somewhat randomly
The Economist
To get informed we have massively switched to the web,
www.kachingle.com
What are the likely Qualities for the success of Business
Modelsrelying 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!
www.kachingle.com
Business Model
$5
$4 – Web Sites
$0.5 – Paypal
$0.5 – Kachingle
$5 $20
Today
Tomorrow
News/Blogs Music, video, etc..
www.kachingle.com
con
sum
er/ u
ser
pro
du
cer
Wh
ose
val
ue
syst
em i
s ap
pli
ed?
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) Creates barriers for viral & social
behaviors
Kachingle, business model of choice for the world of “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) 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
www.kachingle.com
Local News:• Big Green Boulder• Blog Peoria• Chicago Talks• Daily Camera• West Texas Weekly
Investigative:• Carta • Center for Investigative
Reporting• Common Language
Project• Daily Monthly• Pulitzer Center• Unfree Media
Blogs
www.kachingle.com
Carta: $111.06
March 17th, 2010:
Kachingle makes
first “social cents”
payments
“My blog earned $65.08 via
crowdfunding!” – Steve Outing
www.kachingle.com
Vielen Dank! Thank You! Merci!
Yves Huin, Director Kachingle [email protected]
http://www.kachingle.com