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Wednesday, May 26, 2010

This Is Probably Not the Future of Micropayments

Posted by on Wed, May 26, 2010 at 2:35 PM

Ever since I read Reinventing Comics, Scott McCloud's deeply flawed book on webcomic theory, I have been convinced that someone would make micropayments into a serviceable method of web funding. In theory, it makes perfect sense: If everyone who read a New York Times article online paid a half-cent, to use an overly simplistic example, the Times might not have suffered the financial difficulty it's been living through for the past few years.

One of the big problems about micropayments is that, basically, everyone—content providers, content consumers—would have to agree to start doing them at the exact same time. I wrote a books lead a few months ago about a couple of books that had ideas for micropayments and the web. One of the ideas floated in one of those books is that the government would have to get into the paywall business.

A new company, Flattr, is trying to make micropayments into the next big social thing. Here's a video explaining the service:

The social aspect is clever, but I'm not sure it's going to be the thing to break micropayments into the mainstream. The last things blogs need is one more goddamned badge at the bottom of every post, for one thing, and for another thing, the payer doesn't really get anything out of it but goodwill. If there was some way to make micropayments pay off for the giver in prestige or social standing, this could be a huge deal in social networking. I don't think Flattr is necessarily the future of micropayments, but I think the future of micropayments could look something like this.

 

Comments (8) RSS

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Dougsf 1
I don't mean this in any way condescending to comic fans, but it was always my impression the collecting aspect was a predominant sales driver. Additional sales for digital copies must be gravy, but would this satisfy a large enough fan base for this to really develop beyond what's in place?
Posted by Dougsf on May 26, 2010 at 4:09 PM
Will in Seattle 2
Micropayments, like microfinance, are wonderful in theory and useless in practice.

But, hey, whatever rocks your boat.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on May 26, 2010 at 4:10 PM
3
In theory, theory and practice are exactly the same. In practice, they're nothing alike.
Posted by supergp on May 26, 2010 at 5:29 PM
4
Giving people a small amount of money for liking their website? Isn't that what ad space does?
Posted by iflurry http://newsflurry.livejournal.com/ on May 26, 2010 at 7:12 PM
5
The problems with micropayments are a) the expense of collecting them tends to swamp the actual value, and b) people are used to stuff on the Internet being free and don't want to pay. The whole "information wants to be free" crowd that thinks artists, writers, and musicians should work strictly for tips (but, conveniently programmers should still get paid salaries) hasn't helped any, either.
Posted by Orv on May 26, 2010 at 8:34 PM
watchout5 6
Let me see if I get your logic here. You advertise facebook, twitter and e-mail and as far as I know you get $0 from all 3 of those places. You get publicity, they get publicity and you're ok with that, however 1 addition that could actually pay you and at the same time provide the same publicity you're getting with the other links and you have a problem with it?

@5 Musicians shouldn't and will likely never work strictly for tips, unless you count playing in a venue to people paying $5 a ticket to see you charity, and I'm assuming you like me consider that business. It's about how we plan to use the internet we've built, not about who's getting the invoice for whatever payments you think you're entitled to based on what used to happen 20 years ago. The days where you need to spend millions of dollars recording an album is completely over, and those albums aren't half as good as a youtube clip made by a 7 year old with $300 technology, who's getting no money for the art he's creating yet it's continued to be made in record numbers. What would these salaried musicians do exactly? Produce quantity of songs over quality? Because that's exactly what you get with programming, and it hasn't helped either. I understand the paradigm we live in that artists who produce work need to get paid, but you can't expect that every little thing you do needs to have a monetary price attached to it, but if you want to live in that world you need to find a new way to secure your property. Don't interact with people unless you know they've paid you for your password/encrypted services, don't expect that the government has the capability to stop users from taking music off CDs. They don't have enough to stop drugs, how are they supposed to police our clicks?
Posted by watchout5 http://www.overclockeddrama.com on May 27, 2010 at 12:10 AM
ADoodle 7
@2
microfinance [is] wonderful in theory and useless in practice.


Would you like to back up that bizarre claim with reliable sources?
Posted by ADoodle on May 27, 2010 at 3:55 PM
8
Check out Kachingle -- "social cents for digital stuff". The giver (Kachingler) develops a social reputation. And, no button pushing. The widget (Medallion) measures usage.
www.kachingle.com
Posted by Bunny the K9 Kachingler on May 31, 2010 at 4:52 PM

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