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For an example of a commercial Web Server go to:
http://www.infohouse.com

The real key to making money is that a mechanism for collecting 
subscription fees and paying them out as royalties must be adopted.  
Netscape has provisions for user authentication and encryption.  
Infohouse uses "magic cookies" which are confirmed by the user.  
SecureCard and Digicash also provide payment by mail capability.

The point is, why should I call you during business hours to give you my 
credit card number so that I can talk to you 24 hours later when I could 
just push the "subscribe" button and specify payment via a merchant with 
whom I already have an on-line account.

The economics to the HTTP server are complex as well.  The "High dollar" 
server involves getting a Netscape HTTP3.0 server for $25,000, paying
$5000 for the Merchant account for Visa, and having something handle the
accounting and billing plus a 2% and 50 cent/transaction fee.  The "Low
Dollar" solution involves downloading the NCSA HTTP server, adding the
First Virtual Patch, and paying about $10 for an account + 2% and a 25
cent/transaction charge.  Most electronic banks will wire payments 
directly into your checking account.  CheckFree should be available
on the internet within a few weeks, their fees are about $0.50/transaction.

Pricing structures are important too.  Selling in bulk seems to be easier 
to deal with than a pay per document arrangement, partly because of all 
the per-transaction fees involved.  Charge $1-5/month and you might even 
have me as a customer.

	Rex Ballard


From rballard@cnj.digex.net Mon Apr 10 18:13:16 1995
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