Quote:
Originally Posted by fuzebox
And you think a higher percentage of users will do this over pay for a single recurring membership?
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I do. Using the current population as a sample and basing rules on their behavior does not help us serve the segment that would be re-engaged by the employment of low time - low cost payments.
Reducing time cost and price lower buyer resistance can be aggregated into reduced interaction cost. There is a significant population that calculates time cost and cost for
every transaction.
The dialog goes,
"this is a hot scene, I have exactly what I want. Do I click one button and spend $.10 to see all of it in HD or do I go elsewhere and spend who knows how long? For me" (says the surfer),
"10 minutes of free time cost $1 at least. Plus, what is $.10 to me, and how is that jerk on the other end taking advantage of me if I'm only giving up $.10?"
By all accounts, Mr. P is winning the current 45 and older purple squirrel population willing to pay $30/m to see what he wants and come back to the sites every time. The population of impulse buyers who want to "win" by paying you nothing or only a small amount is much larger.
Again, all respect, admiration and thumbs up to Mr. P, but there are costumers out there that could be converted. Over the next few years, mainstream will train our users for us, and they will be using micropayments.
And let me clarify, going it alone would be suicide, as mentioned above - this has to be an industry effort.
Micropayments: Would you pay 20p to read an article?
Google, Apple Expand Micropayment Systems for Web Content and Mobile Purchasing
Europe Shifting to Digital Money and Online Sales for Micropayment