Kachingle Site Presentation 1.18.10

www.kachingle.com | [email protected]| 650 215-8406

Site Presentation

The Platform for Voluntary

Payments in the Digital World of

“FREE”

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For news/content sites, advertising-based business models are not enough to pay the bills.

Example of the Problem to Solve


But the Bigger Problem is…

Anything that can be digitized will be

napsterized

Newspapers

Magazines

Books

Music

Photos, Images, Art

Video, TV, Movies

10001001010011001001000100101111100011001010001010010100010000100000…

FREE!Previously -

$$$$ or € or ¥ or..


NOT content

BUT to build an online persona, achieve recognition, gain status – just like in the real world

What Will Consumers Pay For?


Beside advertising…what are the choices?

Micropayments

Tipping

Subscriptions

Kachingling


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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); does not coexist with ads Creates barriers for viral & social

behaviors

Kachingle, business model of choice for the “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); does not coexist with ads 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


Micropayments sound good 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


What are the likely Qualities for the success of Business Models

relying on Voluntary Payments?

user-centricno “mental transaction costs”tap into existing social networksfinancial transparencyfun, entertaining, like a game

These are Kachingle’s Guiding Principles!


Via the medallion, sign up for a Kachingle account and commit to a $5/month withdrawal from a Paypal account Whenever you encounter a Kachingle-enabled site, that you like and visit often, 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

Kachingling


Go to live site if internet access available


Site Owners just add a Kachingle medallion to their site


The Kachingle Medallion - off

… when one decides to kachingle a site


The Kachingle Medallion - on


Joining a Community


Social Networking Integration

Facebook application allows Kachinglers to display their list of content sites

Automated regular and appropriate tweeting by both Kachinglers and Content Providers

Generalized “where I kachingle” widget for display on other social networking sites (e.g. MySpace, blogs, etc.)


Kachingle to 'sprinkle' dollars to online publishersc|net May 8, 2009

Paul Romer, economist and senior fellow at the Stanford Center for International Development

“(Kachingle) doesn't try to solve the underlying free-rider problem. It tries to use volunteerism, altruism, and good citizenship instead. I like this aspect of the model. Economists and the policy makers who listen to them frequently underestimate the potential for this kind of motive to solve problems.”

Kachingle is the economic model for free


Projected Kachingle Revenue for Content Producer (contentsite.com) with 1M unique visitors/month

Year End Totals

Description 1 2 3 4 5 6

Monthly unique visitors on contentsite.com (000s) 1,000 1,100 1,210 1,331 1,464 1,611% using Kachingle1, 5 2.0% 4.0% 5.0% 6.0% 7.0% 8.0%contentsite.com Kachinglers (000s) 20 44 61 80 102 129Average Monthly Contribution $5 $10 $15 $20 $25 $25% share to contentsite.com2 30.0% 25.0% 20.0% 20.0% 20.0% 20.0%contentsite.com Monthly Share per Kachingler5 $1.50 $2.50 $3.00 $4.00 $5.00 $5.00Monthly Revenue ($000s)3 $24 $88 $145 $256 $410 $515

Annual Revenue ($000s) $288 $1,056 $1,742 $3,067 $4,919 $6,184

Annual growth rate of uniques:4 10.0%

NOTES:

1) "% 'Kachingling'" shows rapid growth first two years from early adoptors within XAOB users

2) "% share to contentsitecom" falls first three years due to increasing pool of Kachingle content providers

3) Revenue after taking 20% transaction fee for Kachingle. Formula is (contentsite.com Kachinglers) * (contentsite.com monthly share) * .80

4) 10% annual growth in uniques in part due to viral growth of Kachingle use across all internet traffic (rising tide raises all boats) 5) Avery large complex site with a variety of sections and voices and numerous blogs will likely have multiple Kachingle Medallions

Kachingle Site Presentation 1.18.10

Technology

Transcript of Kachingle Site Presentation 1.18.10