Death to Paywalls, Long Live Micropayments
Tuesday, June 8, 2021 (a month ago)
~1 minute read
Paywalls are a form of gambling because it is based on the customer's preconceived notion of what they will receive in return.
Flat-price subscription models are a form of mass marketing because it's easy to understand but not tailored to your needs.
These pricing models are outdated in many applications because of 1) the gap between the time of purchase and the time of consumption, and 2) the difference between the customer's expectation and reality. Ideally, there would be perfect knowledge on both sides. Sellers would know how much each buyer is willing to pay, and each buyer would know how much the product is worth to them.
With the rise of micropayments, these gaps will shrink dramatically. It's only a matter of time before streaming services like Netflix and Spotify allow users to pay by the minute (or even the second). Extrapolate to all types of businesses.
Clappy Button enables a "pay-what-you-want" model with micropayments as little as $0.01. "Pay-what-you-want" is obviously not suitable for all situations, but it's a great way to monetize content that you would otherwise release for free for maximum distribution. Simply add the Clappy Button widget to your web page and people can send you claps at the click of a button.