Subject: Re: Slate, Business Aspects.... From: "S. Finer" Date: Thu, 27 Jun 1996 13:06:39 -0400 (EDT)
How the Web Was Won
Subject: Re: Slate, Business Aspects.... From: "S. Finer" Date: Thu, 27 Jun 1996 13:06:39 -0400 (EDT)

Another few words about microcharges vs subscriptions

I feel microcharges are an adjunct revenue generation method, that would
be offered in addition to a subscription model, not in most cases as an
exclusive alternative.  If you enjoy many articles in a pub, then
subscribe, if you only seek occasional articles, pay ala carte as you go.
This method, giving the reader a choice, WILL capture a larger part of the
consumer surplus within any market.  

Some folks favor a more aggressive model in which authors offer their work
to the general market directly, without affiliation with a branded pub or
site.  This could work for well known authors, and might involve both
subscription or microcharges. 

On Thu, 27 Jun 1996, diane haugen wrote:

> 
> >Add to this, the future of microcharges (a term I prefer to Pay per Use)...
> 
> 
> What I really don't like about Pay per Use is not knowing exactly how much
> my clicking is going to cost me.  Nobody likes black holes.  A few cents
> here and a few cents there add up, often substantially if researching a
> topic.

Why assume you do not know?  Supplying such info is not tough.

> With subscriptions, I can freely click through the good and the bad. 

Sure, but if researching (you're example above) how many pubs will you
subscribe to?
 I may
> want to see what the bad says, but I certainly don't want to have to pay
> additional fees to do so.  With Pay per Use, I will definitely not click on
> anything I don't think I'm absolutely going to need.

Not necessarily.  Depends on the price and the presence of a short summary
tickler about the article.

  Readers need to
> evaluate the schlock along with the gems.  Pay per Use discourages this
> necessary step in gathering information.

Not necessarily. It depends on the price and the availability of a good
index.

> I don't read all the posts on this list, but I would read far fewer of them
> if I had to Pay per Use for each one.  I suspect others might well react
> the same way, greatly distorting the readership.

About a month ago, I ran numbers by people here about microcharges on this
list.  A message would go for about .25 cents each...or a dime for 40.
This works out to about $20 annually at current traffic rates.  I feel the
list and everyone associated with it would profit by ALL 3 revenue methods
being offered to the readers' choice.  PPU, subscription,
advertising....with the latter being the default.  

  In the long run, I
> believe this would significantly reduce the quality of the posts, and in
> effect, gut the list.
> 
> A subtle, but very damaging result of Pay per Use.

Cannot agree with your conclusions.  

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