Would You Pay A Penny Per Page?
nebby writes "How Stuff Works is running an article regarding the "penny per page" model for web site compensation. It sounds like a very viable solution, being simple to understand, transparent to use, and fair to the webmasters and users involved. The only downside to it is that it would require a massive effort on the part of web sites, standards bodies, and/or ISPs to switch over. I know that methods of online payment have been brought up before, but in searching on Google I found no information about any groups or companies looking seriously into moving to this model. I was wondering if any such groups or initiatives have been put together, and if not, why not? :) It doesn't take much to imagine the possibilities of what the web could become if this were put in place ..." Penny-per-page actually sounds like one of the better micropayment ideas I've heard, but is just as vaporous as any of the others so far.
Have to pay a penny everytime we get into one of those damned porn sponsored click-fests of opening windows?!
Aggghhh... my credit card bill's high enough already!
;^)
'Life is like a spoonful of Drain-O, it feels good on the way down but leaves you feeling hollow inside'
With dynamic server-side page generation, how do you determine exactly what a "page" is?
So, the website gets 1 penny from the mirror operator? That's what I call Return on Investment!!
I can just see newspapers with a paragraph per page, or web forums (*cough*) with a comment per page and no option to collapse them.
Pay per view already works quite nicely in some niche markets - specifically, where users don't have any other way of getting access to that specific information.
For any other kind of site, forget it. As long as any sites can still make money with a "free" service, who is going to use one that charges? The only way "penny per page" would become viable would be if everybody did it, and that's not going to happen.
Think about this: If I am an average "one-or-two sites" surfer, penny a page will be a money losing proposition for the site operators. Why?
Credit card transactions cost money. Unless the surfer is being billed quarterly, you're talking about a three or four dollar charge each month. Ask any merchant that takes credit cards and they'll tell you it's not even worth their effort to take the cards for transactions less than $20. If it's more than four or five bucks a month, that's way too much. I mean, I'm already paying $45/month for my cable modem, add on twenty more bucks and I'm over my budget for the month...
Who did what now?
Calling this scheme "penny-per-page" makes it sound simple, but the basic problem of defining what it is that the user pays for doesn't go away that easily. What about simple page reloads because of browser hiccups? What about sites like Slashdot, where new content slowly encroaches upon old? What about archives? What about Akamai?
Those aren't new questions, they're the same basic things you encounter as soon as pay-per-anything is considered. I think that complexity makes the subscription model (Salon) more appealing from a management and marketing standpoint, because it's easy to describe and appreciate the value proposition.
I'm not down with web servers and ISP's but I would think it would be good for an ISP to cache common url's that people goto (i.e. msn.com for people that don't know how to change their default start page). So if my ISP is caching msn.com and I go to msn.com but never use msn's web servers then who gets the money? My ISP or msn? MSN made the page but my ISP is "hosting" the page.
©2001 Google - Searching 1,610,476,000 web pages .01 = $16,104,760 .. for EACH refresh of their current database.
*
Hell no on that idea!
I fpages are cached how do they get payed?
http://Lenny.com
4 great justice!
Call me a pessimist, but my belief is that businesses are incapable of handling this kind of thing responsibly. The moment we go to penny-per-page, we'll start to see things artificially segmented across a dozen pages, and all kind of fluff and noise between the front page and any useful pages.
Make it a penny/nickel/dime a day for access to a whole domain, depending on the quantity and nature of the content within, and I might be interested.
What about if you refresh, are you charged again? Is it per-visit, per-day, etc.? I don't think there is any way this would work. Some articles are already (unnecessarily) split into far too many pages, mostly so they can have more banner ads. Google caches.. who gets paid there?
It would be too costly for Google and friends to index a site which demanded a penny for each page read.
It's also not going to add up to very much per month. People who log on to check stock prices, look up the weather, read the top news stories and so on might look at 25 or 50 pages a day. They would pay something between $5 and $15 per month for Web content. But let's also take the worst case scenario. Let's say that you sat in front of your computer 8 hours a day and looked at a new page every two minutes without interruption 20 days per month. That would cost $48 for the month. That is the worst case scenario, and it is unlikely anyone is going to do that. The cost will be minimal for just about everyone
I just popped through 6 pages in about a minute and a half reading/skimming this article. One page every two minutes? Do people actually read that slowly?
If I'm looking for something, I tend to have two or three browsers open... usually one on Deja that does near constant Usenet searches. Their estimation is about 240 page views per day. Heck, I can almost kill that just on Slashdot within the course of a day.
'Life is like a spoonful of Drain-O, it feels good on the way down but leaves you feeling hollow inside'
In the internet medium, what happens if the routing decides to go south while that page was being delivered, requiring me to reload? What happens if I click a link on that page that took me to some place off site to read more about something, then when going back, the browser was forced to re-request the site again? What if I want to use that page as a reference, bookmarking, but being charged a penny ever time I accessed it?
(Yes, there's ways to bookkeep around all these problems, but I doubt that most sites would figure out all the right nuances).
There's just too many technical problems that can happen that a pay-per-page scheme can work. Instead, if those sites that cannot continue to fund themselves on banner ads should either look into 1) getting a better targetted banner ad provider, just as how /. has done, which will have a much better click-thru rate for your site, or 2) adopt a pay-per-term such as Salon has done for premium content. In the latter case, if your content is that good, you'll thrive (as I understand it, Salon's Premium is doing well, given their good content to start with), but otherwise, you'll flounder (and maybe for good reason).
And in the end, while I don't do it know, a web site with content and delivery like Salon would be worth about the same price as a magazine subscription for a year (eg $30-$40/yr) as long as it's unlimited access to the site.
"Pinky, you've left the lens cap of your mind on again." - P&TB
"I can see my house from here!" - ST:
most days you couldnt pay me to visit slashdot.
Take me for example. All thse numbers are being extremely conservative for me.
I'll say I surf an average of 2 hours per day. Thats 120 minutes per day, or 7200 minutes. Now, assume I spend around 30 seconds ona web page before clicking a link to view another (This is a VERY high estimate for me). Thats around 240 page views per day, or $2.40 by this "penny per page" scheme. Thats 72 dollars per month, in addition to my 45 dollars per month for my DSL connection.
And this is being conervative! I can easily name days where I spent upwards of 8 hours online, roughly half of which was viewing web pages. This is much too expensive, I'd never go for it. Maybe 0.25 cents per page is more reasonable.
Correct me if I'm wrong, but isn't one of the great things about the web the way that information can get all around the globe quickly? Paying a penny a page would be irritating for most of us in the western world, but it could effectively close off huge sections of the web to citizens of developing countries. Say you "normally" view 5 pages a day on each of 4 or 5 sites - if you're living on $5 a day, are you really going to pay 5% of your income to view US news sites, UK informations sites, etc?
Trev - used to be interesting. Honest.
From the Article
Google.com gets about 100 million page impressions per day right now. With a penny per page, Google would make $1 million a day, or something like $350 million per year.
Issue #1
If google adopted the "penny per page" model you would see the numbers get cut in half because there will always be a competitor who will offer free service. That's what's so great about the Internet, your not forced to stick with one supplier. Isn't google profitable anyway?
Issue #2
What happens when I search for something on google using the "penny per page" model and I don't find what I'm looking for? The problem with this model is that it doesn't determine the value of the page for the customer. You will be paying a penny for a steak and a penny for Ramen noodles.
90% of the article is basically gushing about how cool it would be if somehow a penny-per-page was somehow magically implemented. Details of how this should be implemented and why this hasn't come to pass yet if it is such a good idea are simply ignored. Halfway through reading it I saw so many errors with the logic but kept reading hoping that the answers would show up later in the article but was sorely dissappointed.
Here's my list of questions that weren't answered in the article:
This article was simply a pile of wishful thinking that didn't get past the "ask my friends if this is a good idea" stage before getting posted to the web, what is sad is that it actually made it's way to Slashdot which unfortunately now gives it some credibility. I wonder if any VCs going to end up flushing a few millions down the drain after this idea simply because it ended up on Slashdot.
Today, there are very few good business models that work on the Web, and this deficit has a significant effect. The Web is becoming somewhat like a desert. There are some survivors -- Ebay, Yahoo, Amazon and so on -- but nothing new is germinating in any significant way.
First, "Marshall Brain" seems to tacitly assume that all the WWW should do is make money for corporations. Second, Mr Brain assumes that only corporate sites are worth visiting. Aren't both of these rather flawed? For a single counterexample to both of these flawed assumptions, what about e-prints of scientific papers? The authors of the papers are more interested in getting the papers out there and read than in getting paid when the paper's content gets read. Advancement of Science and all that. Also, the occasional paper has way more interesting content than the usual slick, marketeer-approved corporate collateral web site.
Brain gets other things wrong, too: When you go to the book store, you never see free books. Walk by a locally-owned used book store. I guarantee that you'll find a "Free! Take one!" rack full of books in front. Walk around any heavy-foot-traffic downtown in the USA and you'll be able to collect a large number of (free!) tracts, flyers and even funny newspapers, like the Onion. Try it, Marshall.
Marshall Brain's underlying assumptions are totally wrong. His penny-a-page scheme won't work.
Ever since Scott McCloud (of Zot! and Understanding Comics fame) started touting the idea of web-based micropayments, I've been seeing these schemes crop up more and more often. The one thing I've noticed is that they all seem to be performing the most horrible contortions to twist the web into something its not...all for a buck.
And, I can't help wondering: what if the WWW just isn't a good medium for most methods of making money? What if, after all this, its just able to do what it was originally designed to do (i.e.: serve up information-based sites, mostly educational and techinical)?
Pr0n notwithstanding, I don't know why nobody seems ready to consider that the web may be just good for a few commercial storefronts (in select markets), distributing some basic corporate information (acting as an informational "web presence" to companies who care to do so), and leaving the majority of traffic for personal and educational/technical sites.
I'm not a Luddite who longs for the "good old days" of the web (although I have been known to go back to using lynx in pinch), but it just seems that most models of revenue-generation on the web DON'T WORK. Hundreds of companies have gone out of business ignoring this. Sure, maybe there's a way to circumvent the web's limitations, but why doesn't any industry consider that the web WILL NOT make most of them money? It seems to me that the web is not the tool that they're looking for, and they're trying to force it to do things it wasn't meant to do...like trying to use a screwdriver to pound nails -- sure, you can do it, but it would make more sense to look for something like a hammer.
A hypothetical article from the future on the downfall of the web:
In the beginning it was a penny per page, theoretically to just recover the cost of serving the page. Then a few sites decided their content is worth more, so they charged a few more pennies. Soon pages costed a dollar or more.
Meanwhile thousands of people had already been copying the content to their local disk to view again in the future, or perhaps share with a friend.
Since web sites were finally making a little money, large contect companies began buying them all up. In the end only a handful of companies owned a majority of the contant on the net. Prices rose and rose.. The actual authors were of course being paid only small fractions of a penny.
All of a sudden the price/page hits a certain sweet-spot where the cost is higher than the value, and people start file-swapping pages. The WWWAA (World Wide Web Association of America) was formed to 'protect web page author's rights'. Lobbyists were deployed, campains were launched, laws were passed, and copyright protection mechanisms were put in place and made illegal to circumvent.
F that.
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2B1ASK1
I live in Eastern Europe. My income is about $400 per month which is above average in this country. I have a university degree and am not stupid or lazy. I just live in a poor part of world. I cannot afford to buy any western books or subscribe to any magazines. Web is the only source of information that I have. Web completely changed my world because giving me information freely. I am extremely afraid that someday such scheme will be adopted.
First, "Marshall Brain" seems to tacitly assume that all the WWW should do is make money for corporations.
The web is all about money, like it or not. All the servers, bandwidth, telecom infrastructure, it isn't free. This is one of the reasons that $40 a month cable modem access has been failing. Network access is so expensive that $40 barely covers expenses. Ever look at the monthly price of a T1 (hint: it is over $1000)? There's a reason the cost is so high.
What happens right now is that some guy or girl somewhere puts up an interesting web page about a hobby or other interest. It costs $100 a year to run. Then it gets Slashdotted, so to speak, by a mention in a magazine, and they get hit with a $500 bandwidth charge. They close down the site and have no incentive to ever try it again. For a while during the dot-com boom the site may have been picked up by a company--which is what happened to Slashdot--but that doesn't happen any more.
What is needed is a way to *balance* the web so that you don't need to be a corporation in order to run a popular site.
No Google would probably go bust.
Why? Okay, don't forget we will be paying 1p per page, but so would Google to index the sites. People only go to Google because it's fast (it'll be even faster with more income), it's comprehensive and it's up to date - if it's going to cost google 1p per page to index sites - I can't see them really jumping to be the biggest search engine at the cost.
The entire premise of this is absurd. Imagine the annoyance of going to google and searching for the phrase "to be or not to be" and receiving the following reply for your penny:
The word "or" was ignored in your query -- for search results including one term or another, use capitalized "OR" between words.
The following words are very common and were not included in your search: to be to be.
For my penny, I would have a list of "about 236,000,000" web sites that include the word "not." (Doubt me? Try it yourself.)
This is why this idea will fail. When a search goes bad, a web page turns out to be mirroring something seen elsewhere, or a the information is outdated or incorrect, we just move on. But when every one of these extracts a penny from us, we will get rightly angered by it.
Should I pay a penny for each X10 video camera ad that pops up? That would make the owner of that site richer than Bill Gates.
Nobody said that the web had to be profitable -- and no one is forcing site owners to leave unprofitable sites running. I know that I won't pay a penny a page for what is, more often than not, useless material and I think others will share my opinion. Make a site with valuable content and people will subscribe, but don't expect random visitors to just open their coin purse to you on blind faith that you will provide useful content.
For people who hit the cap, the billing model would simply divide the $20 paid by the customer by the number of pages viewed and pay the sites whatever amount that turned out to be per page.
So, if I know I'm going to hit the cap during a month (say on the 29th), I could just visit my own server the same number of times and get half of the money back?
For example:
Normal Page views by the 29th = 4000
With their formula, each server should get $0.005 per page. If I add 4000 views to my own server, that's 8000 total views.
$20 / 8000 = $0.0025 for each page.
4000 * $0.0025 = $10.
That's $10 for THEM and $10 for ME. The more I view my own server the more of my $20 I get back.
You will be paying a penny for a steak and a penny for Ramen noodles.
Issue #3
How do you know the content is any good before you pay? Not only are you paying the same price for the steak as for the noodles, but you don't know which it is until you get it.
One of the wonderful things about the net is that you can often wander into new places. For instance, I was looking for a driver the other day, wandered into sites about building drivers, and then into sites about efficient low-level C coding. The problem with the PaP scheme is that I would have been much less likely to explore a new area (which might have been worthless) had I been forced to pay for each access. This is the major problem with the scheme, as it changes the web from a medium of exploration to a medium of delivery.
That is all.