Amazon Starts 'Tip Jar' System
BeFiend writes "Looks like Amazon is trying to develop a "micro-payment" tip jar system for Web sites. They're calling it the Amazon Honor System and looks like you can give as little as a buck, while that's not really a micropayment it is a step in the right direction. I've only seen a couple of sites BBspot and SatireWire with the pay box already, but I'm sure we'll see them popping up all over the place with banner ad revenue plummeting." Amazon says says they don't track you on sites that use this system, even though since the payment box is served from their servers, they easily could (indeed, Amazon's regular No-Privacy Policy directly conflicts with the above page - which one controls?). And Amazon takes a hefty chunk of each payment in processing fees. But perhaps this model could be useful for sites which need cash but don't want to serve advertising.
Checks require a fair bit of overhead on their end. I would rather receive one lump payment a month from Amazon (even losing 15%), than to have to process a few thousand (hopefully) checks a month.
The 15% overhead protects me from bounced checks, and lots of work on my end. It's a good deal.
That implies an upfront fee. Both because there are no karma points to begin with and because people have to develop their ability to properly communicate their ideas. I'm for lowering the entry level to getting more people online and not raising the bar.
At what price learning? At what cost wisdom? The price is a man's peace of mind, and the cost is his life.
I disagree. It'd limit stupid posts to the people with extra cash to throw around while also limiting useful posts from those who don't have the extra cash. Tip jars are just the newest stupid money making gimmick on the Net and even worse than advertising banners. If Slashdot or any other site I use starts using these Tip Jars I for one would stop using the sites. However if they put a 'donations' link in an obvious place I might donate to keep them running from time to time. If the sites I like start adding to many lame features then I can always open my own similar site w/out said lame features and let the users decide which they like better. I think most users will gravitate to free as long as the quality isn't shit and we've all seen that most the really good sites on the Net are free I'm sure. How many of us bother with sites that even ask for online registration to view articles?
At what price learning? At what cost wisdom? The price is a man's peace of mind, and the cost is his life.
"This"--Amazon's tip jar, the system described in the article--is a purely voluntary payment mechanism. The only people who would pay for it are people who already "care" about Slashdot. They wouldn't care because they were paying, they would pay because they care. The trolls and the goatsex would continue, because they wouldn't be forced to "tip".
As it happens, I don't think Slashdot should force subscriptions either--Slashdot is what it is because of the chaos it allows, and its moderation system is a fascinating experiment in balancing free speech with the desire to separate wheat from chaff. But if you did want that, you couldn't get it from the system under discussion.
No offense lad, but
a) the html is a bit too garish for my tastes and
b) it's truly sad that this is the #1 ranked guy on your site.
It's possible that your site just isn't a good test case for this idea. Satirewire on the other hand...
--Shoeboy
Well, you're wrong. I'm pulling in a fair number of page views (300k a month) and pushing a good amount of bandwidth (over 2 gigs a day now, and that doesn't count the pictures), and still no one donates.
As for moderation, I'm at the cap, so I don't need your moderation points to begin with.
The fact of the matter is it's still too hard to donate. Not everyone has a Paypal account, and to them it's too much hassle to go through the sign up process just to give someone a quarter. People are lazy, and they are cheap. With those two traits characterizing most all web surfers out there, I don't think donation systems will work unless they get a LOT easier.
BilldaCat
I totally agree. I play hockey, and I got started way too late in life to ever hope to do it for a job. I love it, I play constantly, it costs money, etc.
My point is that eventually, the monetary drain of running a website with no income is gonna shut sites down. SomethingAwful nearly closed, and seems to be on a month by month death watch now.
"When the dot com scam dies off".. it's amazing how people forget what got them here. Competition among corporations has led to lower access rates to the internet, lower bandwidth/hosting costs, etc. You want things to go back to being MORE expensive, and lessening even more the number of personal creative web sites out there?
BilldaCat
So how many slashdot users use them and care that they are being sold as stats?
I bought one book from amazon about 3 years ago, but after seeing the directions they were going in, have sworn off them ever since. This is for various reasons, including:
Do I still use amazon? Sure, they're a great source of book reviews, which I frequently consult before heading down to the local used book store or independently owned bookshop. As always, I browse with Junkbuster so my machine remains amazon-cookie-free.
For those, like me, who choose not to do business with amazon in any form, it appears that one can add 's1.amazon.com' to one's Junkbuster blockfile, and it'll replace the whole 'tip jar' banner with a broken link and an ALT tag reading "amazon honor system". Much less obstrusive, and it still lets you browse amazon.com normally, as far as I can tell.
I have mixed feelings about micropayment systems, but one thing you CAN do to encourage and reward people's efforts is to take a minute to send fan mail to sites/artists/musicians that you really like. Personally, a few meaningful comments about my work give me a lot more encouragement than the few bucks a month a micropayment system might result in.
The folks at Modern Humorist are going to use the money collected to buy a Weber grill for Jeff Bezos, under the assumption that he'll then invite them over for a barbeque. I gave a buck...
We also get slammed with charges from banks to use atms. That part makes no sense to me.
No. The scary part is when you see people lined up outside the bank in order to pay to use the ATM, while there are idle tellers inside. If you are a banker it makes very good cents to charge $1.50 to give someone $20 of their own money. I'll never figure out why the people do it, though.
NOTE: WAY TO SAVE $1.50:
Go to the grocery store and buy a pack of gum with your ATM card and get $20 back. You still spent $.50, but at least your breath don't stink anymore 8*)
Aah, change is good. -- Rafiki
Yeah, but it ain't easy. -- Simba
I know, I know, why is AOL.com still up, go figure
Possibly because they do have redeeming quality? Such as ease of use? Those of us who are technically literate don't use them, because we don't need/want out hands held. But AOL comes closer to passing the "mom" test than any other site out there.
Best Slashdot Co
Do you want a mortgage officer to be able to see that you "micropaid" for a pornography site three years ago, or that someone visiting your home did so, and you had 'auto-micropay' turned on, and now it looks like you did it? Say you are a firearms owner who visits gun-related sites. When your next employer demands to see your micropay list, and refuses to hire you because you are a "gun nut", how will you feel about micropayment then?
Make it anonymous, secure, and throw the records out every six months, and I'll do it... but nobody will be willing to meet those conditions.
Carefree highway, let me slip away on you.
This isn't spam,but Chank a very interesting and good font creator is using the system too. I won't be sending him any money due to how I feel on the amazon patent bit, but I thought I'd point it out.
In Soviet Russia...michael would be rotting in Siberia!
In a way yes, but in reality that's how most everyone trying to make money in the open source world is doing it. You give away your code and charge for a service that goes with it. RedHat et. al. give away their code (and even binaries) but charge you for services such as putting it in a box with a CD and manual or for telephone support. /. provides a service (collecting technical news and discussions) that people may or may not consider worth paying for. Being that there are so many people here who insist that they could do a better job (spelling, editing, choosing stories, picking color schemes, generating html, etc.) than Taco and co. it probably wouldn't be too long before a good portion of the /. audience moved on. But, I'm sure that there are some people here who do really value what they get from /. and would be willing to contribute toward the cause.
_____________
I don't want free as in beer. I just want free beer.
I guess the point here is twofold. It takes time for the donations to ramp up. And you're not going to make a million, but it might be worth your while.
If you're interested in sponsorpool, drop Tom Swiss a mail and ask him about it. It's kind of a cool project.
All your dangifiknow are belong to us.
Mr. Pink: I don't tip...
Amazon jumping into this space is clearly a direct attack on paypal's dominance in "what-passes-for-micropayments-nowadays", which is in turn a validation of what paypal is doing. The two biggest problems with the first generation of micropayment systems was
- ease of use (not)
- proprietary and patented "standards"
Among on-line payment systems, paypal has done the best job so far of making it easy to send and recieve money - which isn't saying much. As for standards - who knows what patent horrors await us? Presumably one or another of these titans will begin some massive strategic litigation and try to clear, or at least clog up, the field. But while dinosaurs fight, there's some mammals somewhere eating their eggs.The open source community and the independant music scene needs to join forces. Here's a quote from a recent post to the Pho list:
So what is the nature of this schism? It seems to be related to the fact that the captains of the entertainment industry have emphatically and to a man (I'm betting they're all men) declared an undying jihad against "wholesale copyright infringement", and are willing to, in John Gilmore's words, "... destroy the future of free expression and technological development, so they could sit in easy chairs at the top of the smoking ruins and light their cigars off 'em." Why is it that the media industry has such power that they can appear to dictate the very laws of nature if it is necessary to protect their interests? Do they really stand to lose so much money from file-sharing? (There's not much evidence of this yet...) And why is it that the tail of entertainment is wagging the dog of commerce?Because it's not about money, it's about control. Culture is the most important commodity because it's the one that sells all the others, not only overtly through advertising, but implicitly, by establishing "social norms", subtle biases, and hidden assumptions. As the content and ads, news and entertainment blend and become one, the public is immersed in a bland and shallow "reality" in which they pretty much go along with anything.
The internet gives independant culture a chance, however slim, to reach a large audience without having to go through the mediation of "the industry" - and this is the greatest terror of partisans of the neo-feudal "new world order". For similar reasons, 'anonymous cash' micropayment systems have been "fumbled" by those who should have been developing and promoting standards - ie. governments and banks - because they see it - quite rightly - as potentially sewing the seeds of their own demise.
An open-source micropayment system could provide a way for fans to pay artists directly, with no middle man. Such a system would have to be established on a "web of trust" model, to avoid any possibility of control by dubious central "authorities". It would require the cooperation of many people, all over the world, to overcome the obvious chicken-and-egg problem, but the history of the net suggests that this may not be as unlikely as it appears. We propose to call this system a potlatch network, after the gift festivals of the northwest coast. Napster et al. is providing one half of a gift economy - we need to complete the circuit by providing a way for fans to support their favorite artists. The implicit contract is an informal version of Kelsey and Shneier's Street Performer Protocol, in which payments are effectively for future works - the carrot rather than the stick: "give us money and we'll release more art." Steven King's experiment was reported as a failure by the New York Times - but he made $600,000 dollars with virtually no expences. (read King's reply to the NYT.)
This not only can work, it is working. What Amazon's doing is an attempt to insinuate themselves into a central position as experiments in voluntary payments (micro- or otherwise) begin to mature. And we all know how much we can trust Amazon, right? We're interested in any insight or assistance in specing out this proposed network, comments welcome - jim at potlatch dot net or visit the url atop this msg for more info.
Answer your question and you might keep on doing it. If the answer is for money, oh well, see you later!
Let's not get confused ala RIAA. Creativity is not dependent on ability to earn money. I love to skate board and it's too bad that I can't earn enough money doing it to quit my engineering job. I could really develop it into the performance art it deserves to be. BZZZT, I'm gonna do it anyway.
Oh yeah, soon I'll be putting more time into my own server on the DSL line I'm getting (No Freaking cable style TOS off! Yes! Good bye ATT@home, you suck, suck, suck.). What will I put on it? Some of my thesis work, other projects, and who knows. I don't care if anyone pays me one cent.
We should be concerned about access to publishing and the web becoming some kind of neutered corporate lap dog. Somehow I think that's less likely when this dot com scam dies off. No money here, boss, move on.
Friends don't help friends install M$ junk.
done.
Paul
Plus, they obviously get usage statistics - another big plus (while the policy said they don't gather personalized tracking info, they never said they wouldn't gather statistics across users, which would also be very useful, especially since they CAN cross-match that statistics with their own database of items bought from your account.
I'm not sure if i'd be hesitant to use such system or not, but i'm sure i'd MUCH rater prefer a similar system from a company that doesn't also sell things.
-Daniel
"The right to figure things out for yourself is the only true freedom everyone shares. Go use it"-R.A.Heinlein
Linus Torvalds has received money from them too!
I noticed Icebox (www.icebox.com) is already using this system!
Almost everyone at Icebox is from the TV world and, as we've seen, ideas from the "old economy" does not always port well to the Internet. What's interesting about this company is that they have alot of expertise in creating content but not making money off of it.
I believe they were part of a talk at Digital Hollywood on how to make $ from content on the web - but they didn't have a clue! Too bad, they have some really good shows!
Yeah. Fortunately, they let the webmaster use a text link instead. No way for Amazon to track (except the folks who click through), no doesn't-match-my-color-scheme graphic, no annoying "Hello YourName" stuff.
If I use this, I'm definitely going the text link route.
Slashdot's token middle-aged housewife
but the little box knew me (and took me straight to a Hello, page). Cookies = tracking, so what's the difference?
Here's a quick comparison between Amazon and Fairtunes.
We also have a Winamp Plugin so *you* (not us) can track your music preferences and then quickly and easily send money to an artist, or you can use the integration in FreeAmp.
Fairtunes isn't just for musicians! I.e. Look at Linus Torvalds who has received $175 from Slashdot readers.
The power of Fairtunes is that you can send money to anyone. Even if they don't ask for it!
Matt.
The free beer coupon good at any store 'Tip Jar'
Paypal!
The problem with capped Karma is it only goes down...
SIG: HUP
the Amazon Honor System lets you use Amazon.com payment technology to make payments to Web sites as small as $1.00.
isn't micr payment more like 0.10 $ ?
If amazon.com is hurting for money so much, you'd think they'd come up with a better ploy for making revenue. This sounds like a glorified version of the salami technique where they slice off fractions of a penny from back transactions.
Apparently, they aren't making as much money off of their patent fiasco as they thought they would.
I'd still keep a backup option before relying on this as my method of cash generation.
From the satirewire tipbox:
"Shoeboy, you CAN save a dotcom. This is one."
That's truly annoying. Any time I see my nick, I look. Even my parents call me shoeboy. It's more recognizable to me than my real name.
If this thing takes off, I'm going to have to delete my amazon cookies. The last thing I want is to have my attention drawn to advertisements.
God, imagine if they applied this tech to banner adds.
--Shoeboy
First, your site is called Bangable, rate chicks and stuff... your clientel might not be into donating money. Second, your site is a ripoff of so many other sites... (there's event a rate the Rating Sites site out there!). Third, why would I donate to you? What do you offer me exactly? I could easily take my $1 and give it to something more charitable, or at the very least, a site that interests me on a daily basis and keeps me informed/smiling/whatever. Rating sites just plain don't do it.
Places like blogger.com have been having paypal funding drives where they asked people interested in helping out to send money by paypal, and as far as I know these have been pretty successful.
I guess this may not be sufficient prior art for the USPTO though...
Ñ'
...I thought it said, "Amazon Starts 'Jar Jar' System". I was about to have a heart attack... I mean just imagine, that idiot Gungan keeping track of your purchases...
"Destroy science and religion. Science would re-emerge exactly the same; but not religion." - Penn Jillette, paraphrased
In a world where you can't stop people from copying your work (unless you never release it), I think artists and authors will find that they make the most money by letting their work spread into as many hands as possible and make it as easy as possible for people to tip the artist, no matter where they get the work from.
The Grateful Dead pioneered this model by giving away their live performances. Phish showed that anyone could become successful this way, it was not something unique to the Grateful Dead. Now there are a bazillion Jam Bands that allow recording and trading of their concerts. Pretty soon they will be able to actually get income directly from tape trading as well!
Burris
So they come up with a slightly slicker version of Paypal's Web Accept program. (One of Amazon's innovations is a personalized greeting on the payment button -- a feature that may backfire given the privacy issues.) But everyone's going to ask, Doesn't Paypal already do this? And why should an emerchant use Amazon -- a competing emerchant?
So they don't market the thing as a micropayment system. They call it a "tip jar" system, which makes it sound like something new, and gives them a foothold in small sites that are noncommercial or don't compete with Amazon. That creates "brand awareness" (a holy concept with this company) and a chance to get a foothold in a market dominated by Paypal.
I think the whole thing's gonna be a big bust. Paypal has done a good job of designing a simple, usable payment system and building a loyal customer base. The Amazon payment systemis one of those half-assed initiatives that works better as a Powerpoint presentation than in the real world.
__________________
If we each sent a few dollars to a particular charity, the cost of processing the individual checks would easily exceed 15%. Think about all the people needed to do the simple stuff like opening envelopes, writing all the check numbers down, writing the deposit slips, making sure there are no errors, bringing them to the bank, reprocessing the bounced checks..I think you get my idea. The non-profit would easily send spend 15%. One example, the company I worked for donated 100k in matching funds to the earthquake victims in India through UNICEF's web site. Fortunately, UNICEF is large enough to process their own transactions to cut out the middlemen, but it would still be worth it. Imagine the amount of individual donations and time to process 100k worth of donations. The Indian earthquake victims need the food now, not later.100k was collected in less than 48 hours from my company's employees. Electronic is the way to go.
"It's technical in a psychometric kind a way" -- C. Parish
I once bought many a things from amazon, but no more. Why would anyone want to buy from them? I can name off many places that have the same products at a cheaper price. Most of all the part they seem to love to sell is the private data of users, thats way too much to pay for a service like that. So how many slashdot users use them and care that they are being sold as stats? And how many of you just buy natalie portman dolls only to send them back and throw off their demographics?
Fight censors!
"Not my manner of thinking but the manner of thinking of others has been the source of my unhappiness." - M
Great, now when anybody puts up some lame site like 'Newz about My Cat Mittens', not only will they go to great lengths to irritate the public at large, but they'll also expect to get paid for their efforts...
I find it very strange that banks in the US are so backwards as to necessitate things like PayPal. In the UK (and I think the rest of Europe) as long as you know someone's account number and their branch sort code, you can make an instantaneous transfer into their account, either by telephoning your bank, or through Internet banking -- for free, and without the need to hold a "buffer" of money in a service such as PayPal.
Frankly it beggars belief that this protocol does not extend worldwide. Why can't I pay eBay sellers in the US in this way? I'd even pay a small surcharge, but not the £25 or so that an international banker's draft costs.
Um, this is sort of irrelevant to micropayments (although it points us in the direction of how things *should* be done) but since PayPal got mentioned so often here I thought it was worth dropping into the mix.
--
I've been using paypal for a while now, just for transactions between myself and friends and the occasional auction. And you don't even have to have a credit card to use it. I've got it patched into my bank account.
All transactions on the personal level are free, but they go to $.30 for all purchases under $15 and 2.2% (for credit card) or 1.6% (for non-credit card) plus $.30 for all purchases over $15 if you're using the premier or business account.
I haven't checked the amazon rates, but these seem fairly reasonable to me for any normal transaction. It gets a little tricky when you're just doing micropayments, but you can stick with a personal account if you don't plan to be raking in lots of cash.
I also expect that the average intelligence of the posts would increase, as only those who were reasonably intelligent would have the foresight and drive to actually register. I expect that /. could increase its revenues by doing this too, which would give them more money to invest in the site and improve slash (and perhaps employ someone to proofread articles for typos and read Taco's mailbox).
In addition, it need not cost much. I expect a couple of dollars a week automatically paid by credit card would do the trick.
Just imagine the improvement in the quality of discussion and commitment to the site and community that would occur! It would be a vast improvement from all the goatsex, I am sure.
I am also sure that many of these arguments could be applied to other sites.
They fuck you up, your mum and dad.
--Anticipation of a New Lover's Arrival, The
I tried doing the whole PayPal donation thing, which is very similar. Had it up for about a week now on my site (the one in my sig).
I've received a grand total of 20 cents.
If I get another nickel, I can buy that gumball I always wanted.
It's very depressing, actually. It makes me question why I'm doing this, if it's obvious people don't appreciate it that much. There's next to no money to be made in banners, and the cost of the server will soon become too prohibitive to handle by myself, so I'll likely be forced to shut it down. Kinda blows, but I guess that's survival of the fittest for you.
BilldaCat
When you see one of those cans in a store, or see some donation place, it's often run by someone else who takes most of the money for themselves. Amazon has set up an interesting paralell. While %15 is not much by first look, it really does add up when you have a few million in donations cross their wires. I think it would be better for them to send a check in to the people, despite the convience of this type system. That way you are sure all the money goes to the group it belongs to. And I wouldn't trust their privacy policy as far as I could throw it. It would be rather easy to slip a web bug into an image for the "donation system."
Don't call my crazy, that's what they called me back in the home!
Imagine. Now we can tip all of those live-feed strippers on adult websites.