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WebWord Weblog Posting Posting Date: September 15, 2003 Misunderstanding Micropayments (Scott McCloud) -- "Free content is here to stay, file-sharing is here to stay, and any attempt to completely wipe out either is doomed to failure (as it should be). But that in no way precludes the co-existence of markets based on the desires of willing sellers and willing buyers. To proclaim without a hint of doubt that such a market will never exist for low cost digital content contradicts everything we know about the Web’s inexhaustible capacity for variety and adaptation." (Comments: I think "never" is a strong word. On the other hand, I'm not willing to buy content online right now at the micro level. What I think is being missed is macro payments for electronic material. For example, I know that people were willing to spend $4.95 for WebWord material that I put together. Note that this material was already freely available on WebWord yet people still bought it when I packaged it up and threw a price on it. This leads me to believe that people would rather spend $4.95 for 200 pages of material than $0.02 or $0.03 for a page of content, or even $0.25 for a full blown online comic. My recommendation: Forget micro payments and aim for macro payments. For some reason it seems to make more sense to pay more and get more, than to pay less and get less. Or even more. Consider Nielsen's insanely expensive usability reports. Setting prices is a black art. Both McCloud and Shirky need to look into pricing research. And read more about the psychology of buying. And more. I think I can explain a lot of this pricing stuff, but I would need to write an article. Is anyone willing to pay me to write the article? :-) Thanks for the pointer, Frank.)
Reader Comments...
How about 2 or 3 cents? :) Posted by: Jim on September 16, 2003 11:37 AM
$50-$250 for Nielsen's reports is not "insanely expensive" under any definition. That's jsut a cheap (inaccurate) shot at a competitor and questions your credibility. Posted by: pb on September 16, 2003 03:05 PM
I think Micropayments may be difficult to track or manage. It reminds me a little of mobile providers charging by data transfer. People perhaps dont understand how it works so they are less inclined to buy into it. Posted by: Daniel Szuc on September 17, 2003 09:03 PM
pb wrote: "$50-$250 for Nielsen's reports is not "insanely expensive" under any definition. That's jsut a cheap (inaccurate) shot at a competitor and questions your credibility." Partial correction. Nielsen's reports are expensive for most people and most small organizations. In my opinion, most people and small organizations will get 90% of what they need from reading Don't Make Me Think (Krug's book). In this context, Nielsen's report are "insanely" expensive and a waste of money. If you don't agree, that's fair.
I'd also say that NNG reports aren't insanely expensive. If you compare them to the cost of Forrester research reports or running your own study, they aren't outrageously priced. That doesn't mean I find all of their reports worth buying unless they relate to a direct business need. I wouldn't buy them just to hone my skills, but I'll buy them if they relate to a project or application I'm involved with. Lower pricing or a subscription pricing option would likely change the number of reports I'd buy. Posted by: Lyle, Lyle, Croc O' Lyle on September 17, 2003 10:06 PM
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