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Testing an Ad-Free Microtransaction Utopia

MrAndrews writes "After reading a Slashdot story about adblocking and the lively discussion that followed, I got to wondering how else sites can support themselves, if paywalls and ads are both non-starters. Microtransactions have been floated for years, but never seem to take off, possibly because they come off as arbitrary taxation or cumbersome walled-garden novelties. Still, it seems like the idea of microtransactions is still appealing, it's just the wrapping that's always been flawed. I wanted to know how viable the concept really was, so I've created a little experiment to gather some data, to put some real numbers to it. It's a purely voluntary system, where you click 1, 2 or 3-cent links in your bookmark bar, depending on how much you value the page you're visiting. No actual money is involved, it's just theoretical. There's a summary page that tells you how much you would have spent, and I'll be releasing anonymized analyses of the data in the coming weeks. If you're game, please check out the experiment page for more information, and give it a go. Even if you only use it once and forget about it, that says something about the concept right there."

32 of 248 comments (clear)

  1. No actual money is involved by Anonymous Coward · · Score: 5, Insightful

    Might skew the results a bit.

    1. Re:No actual money is involved by MrAndrews · · Score: 4, Interesting

      True, but that in itself could be part of the experiment, for each individual person. For instance, today I'd already have spent $0.25. At the moment, I can't tell if I'm happy with that result or not, but I bet by the end of a month, I'll know if my "whee!" approach to dropping pennies is a Very Bad Idea.

    2. Re:No actual money is involved by dreamchaser · · Score: 3, Insightful

      It is not a valid experiment exactly because it is artificial and no real money is involved. The results will tell us nothing of value about the question.

    3. Re:No actual money is involved by girlintraining · · Score: 5, Insightful

      It is not a valid experiment exactly because it is artificial and no real money is involved. The results will tell us nothing of value about the question.

      Yes, in exactly the same way the Stanford Prison Experiment didn't teach us anything about human behavior because it wasn't a real prison...

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    4. Re:No actual money is involved by AK+Marc · · Score: 4, Insightful

      The Stanford Prison Experiment wasn't about prison - that was just a plot device for the roll play. The web pay is about money directly. So substituting something else does, necessarily, change the results.

    5. Re:No actual money is involved by GigaplexNZ · · Score: 3, Interesting

      I'm still not sure how this is representative of real world usage. Is this site allowing full access where the user chooses after viewing it how much they think it's worth as a way of determining how much to charge for access in real world usage where you'd have to pay before viewing it? For me at the very least, pay before and pay after decisions will heavily skew how much I'm willing to pay.

    6. Re:No actual money is involved by girlintraining · · Score: 4, Insightful

      The web pay is about money directly. So substituting something else does, necessarily, change the results.

      The original poster stated that this test would yield no experimentally useful data because the environment was simulated instead of actual. That argument is bogus: Simulations can and usually do yield useful results. I said nothing about role play, substitution, etc., that's all you. All I have said is this simulation will yield experimentally useful data. It may not yield the kind and quality of data you want, but it is still scientifically useful.

      The first step in any scientific endeavor is the collection of data with an eye towards testing a hypothesis. I do not see the problem with the author's test. does it matter if 1%, 10%, or 99% of the people who go to the website would do the same if "real" money was involved? Not necessarily. If a data plot shows the same relationships, but on a different scale, then this large-scale test without money could be very useful in a small-scale test with money. It could be used to validate certain models of human behavior, or rule out others.

      Of course, inductive reasoning ability amongst slashdotters has been falling like a rock for some time, so I suppose I shouldn't be surprised to see such a poorly-reasoned reply getting moderated up... -_-

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    7. Re:No actual money is involved by AK+Marc · · Score: 4, Insightful
      It is not experimentally valid. You can't swing that argument, so you are going the other way and indicating that it is "useful" even if not "valid" (which, if that is your argument now, indicates your first response was a non sequitur, and you agree with the original post you disagreed with).

      Of course, inductive reasoning ability amongst slashdotters has been falling like a rock for some time, so I suppose I shouldn't be surprised to see such a poorly-reasoned reply getting moderated up

      Then you drop into an ad hominem, where you can't fault the logic directly, so you imply it's faulty.

      It seems you meant to say "I can't disagree with your statement that it's not valid, but even invalid experiments can yield useful data." Which if you had said directly, rather than an obscure analogy (no, I didn't have to look it up, but I'm quite certain that 99% of the general population wouldn't know what it is, even if 10 out of 10 slashdotters would claim to know eveything, even if only because they Google it first), it may have been more clear. Unfortunately, I know the study you referenced quite well, so I immediately recognized the flawed analogy you were trying to pull off. If I were dumber, then maybe nobody else would have noticed. Perhaps it is you and your inductive reasoning that's substandard.

    8. Re:No actual money is involved by noh8rz10 · · Score: 3, Insightful

      i think what you're doing is awesome! A potential approach / solution: first, have a service (I'll call it PayMe) where I can set up an account and automatically deposit $10 per month, or whatever number. Next, my browser has a plug in or whatever so when I visit a site the website knows that I'm a PayMe member and here's my account.

      here's the cool part: upon detecting I'm a PayMe member, it kicks me into a premium version of the site, say without advertisements or some other feature. Or perhaps it shows me an article that would otherwise have been paywalled. At the end of the month, my $10 is split amongst all the websites that gave me this preferential treatment.

      Websites would presumably jump at this program, because they could make some real money compared to the ad impression rate. And it would be transparent to the user, because things would automatically increment when he/she surfs. Lastly, it would create demand for some sort of "premium" web page experience for those willing to pay.

      ho, snap. I'm getting excited about this!

    9. Re:No actual money is involved by AK+Marc · · Score: 4, Informative

      You missed my point. The prison wasn't real, but the scenario was. The question wasn't about "what happens in prison" but "what happens in our minds". Whether there is a prison or not is irrelevant to whether our minds are there.

      Whether money does or doesn't exist is materially linked to the value of that money. That's the difference. I read, you did not. You disagreed with my point, then made up shit to justify your opinion. You never addressed my original point. The same one girlintraining missed. The prison didn't need to be real because it was unrelated to what was being studied. The money must be real to get valid results regarding spending habits..

    10. Re:No actual money is involved by MrAndrews · · Score: 3, Insightful

      Ideally, you'd pretend it was real money, if only for calibration purposes, and act accordingly. This experiment is gathering information broadly, but also for you, specifically. So you can see what you'd spend, if you were spending.

    11. Re:No actual money is involved by icebike · · Score: 3, Insightful

      It seems you meant to say "I can't disagree with your statement that it's not valid, but even invalid experiments can yield useful data."

      That's exactly how I read it as well.

      The theory seems to be:
      Nobody is plunking down pennies, but if we all pretend we were, we will see how such a payment system might work.

      Unless or until there is an actual monetary collection mechanism the experiment is a bogus mind game. You would learn much more by putting a primate in a cage with three buttons which invoked a tiny, medium, and large swat with a newspaper when pressed. Even the dumbest monkey would press even the lightest swat inducing button more than one or two times. Even is the buttons induced nothing worse than an annoyingly bright light they would not push the buttons. If the buttons did nothing at all they would learn not to waste any effort pushing them.

      So unless there is a penalty, newspaper or monetary, no amount of pretend button pushing will teach us anything.

      --
      Sig Battery depleted. Reverting to safe mode.
  2. Or by GeneralTurgidson · · Score: 5, Insightful

    Go back to when people had web sites as a hobby and not this SEO, per click revenue blog spam shithole we have today.

    1. Re:Or by AmiMoJo · · Score: 5, Interesting

      Books and libraries are still relevant because reviewed and edited content is valuable. I was looking for info on making model train layouts and there are loads of forums and hobbyist witted that look like they were built in 1998, but nothing with a complete illustrated tutorial using materials available in my country.

      --
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      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    2. Re:Or by poetmatt · · Score: 4, Informative

      how about non-shitty websites?

      I'd settle for that. sites like techreport that will ban people for daring to mention adblock need to go fuck themselves. They say they can't live without ads. That's how lazy they are. Are they unique? No, escapist did the same thing.

      Even if it's been debunked before, people still trot out the "how do we live without ads"? phrase as if it's a question.

      http://www.techdirt.com/articles/20100306/1649198451.shtml = answer.

  3. this isn't really testing the hard part by Trepidity · · Score: 3, Interesting

    The hard part is getting people onto some kind of platform that works and where friction and transaction costs don't eat all the money. If, theoretically, one existed, then maybe it'd be interesting when people click 1 cent or 3 cents; but a bigger issue is putting them in a position where they can easily click at all.

    The only micropayment-for-writing platform I've seen with significant uptake was Readability's now-discontinued experiment, and it worked (to the extent it did, though it's been canned, so perhaps not that well) because lots of people used Readability for other reasons. So it was more of a revenue-share that Readability was offering to any webmaster who wanted to sign up. I think you need something like that, a platform that people are already on for some other reason.

    1. Re:this isn't really testing the hard part by MrAndrews · · Score: 3, Interesting

      I had a great discussion today about what "next steps" would be for this, pretty much encompassing your point above. The somewhat-decided gist is that there's some single place or service that handles the actual money. So for instance, you create an account there and drop $10 into it, and then just go browsing the web as usual, clicking the 1, 2 or 3-penny buttons built into your browser. At the end of each month (or thereabouts), the central organization pays each of the sites you supported, thereby dodging the "micro" aspect of the microtransaction. Sites themselves wouldn't have to sign up or support it, they'd just have to claim the money using some kind of verification process (that would be a nightmare in and of itself).

      Entirely voluntary on all fronts... which means it's basically impossible to implement, because there isn't a good profit margin in it :)

    2. Re:this isn't really testing the hard part by Trepidity · · Score: 4, Informative

      Are you familiar with Flattr? It's structurally quite similar to what you're discussing, so might be worth a look. One difference is that you don't pick how much you want to pay each site. Instead, you decide how much you want to spend per month total, and then you just flag sites with "pay this guy". Your monthly payment is divided equally among all flagged sites. So e.g. if you pay $1/month and click the button on 20 sites, they each get $0.05.

      Some pros/cons to that model, but one aspect that I think is a good idea in that approach is that it consolidates the "hump" of laying out expenditures to one decision, that of signing up for Flattr to begin with. Clicking on sites during the month doesn't cost you more, but just redistributes the money you already paid, so there may be less mental resistance to doing so. On the other hand, it also means there's no real way to signal that you liked both Things A and B, but A a lot more.

  4. The data is meaningless without real money by johnkoer · · Score: 4, Interesting

    The data being collected has very little impact on real world results. If there is no cost, then people will simply click the 3 cent link when they remember to do so. Since it has no impact on their finances they won't think twice about it.

    Think about gaming sites that give you free unlimited chips to play poker with. People bet the max every hand no matter if they have 2-7 off suit or pair of aces. This completely destroys any comparisons to a real money game.

    1. Re:The data is meaningless without real money by MrAndrews · · Score: 3, Interesting

      I agree, but another aspect of it is: if you are playing along with absolutely no regard for what these buttons really represent, how will you feel at the end of a month, looking at what you've potentially spent? It could be "holy crap, I can't afford this," or it could be "that wasn't as bad as I thought." That's extremely interesting to me, all by itself. Then add in the "how much would this pay my favourite sites", and you've got a really interesting conundrum and/or solution.

      It's almost like "try before you buy", in a way. But purely for personal curiosity.

  5. Re:Has to be real money by Trepidity · · Score: 5, Interesting

    Most of the proposals are based on aggregating the "give this person 3 cents" indicators through some kind of intermediary platform, not processing them all on the spot. For example, with Flattr you pay Flattr once per month, and then you indicate how you want the money distributed by clicking on various things. The money isn't sent immediately then either, but accumulates in the recipient's acocunt, and is paid out when they reach a threshold. So on both the pay-in and pay-out sides the transactions are fewer and bigger.

    The trick is getting enough people to sign up for such a thing for it to be at all viable.

  6. Mod Points by Master+Moose · · Score: 5, Interesting

    I usually spend my mod points when /. award them to me.

    I have no issue with this. If I had to pay for Mods, there is no way I would have ever spent 1.

    --
    . . .gone when the morning comes
  7. you realize you are asking on an ad supported site by decora · · Score: 3, Interesting

    that has been going strong for more than ten years?

    you are confusing slashdot commenters with slashdot users. commenters are, in general, a bunch of angry cranks who get a buzz out of spewing bile and hatred through their keyboard. slashdot users generally read the article (or the first sentence or two) and then do something productive with their life.

    paywalls do work for some content, otherwise places like the WSJ, slate, etc etc etc, wouldn't use them.

    and ebooks are doing a pretty good business on the kindle, nook, etc. even the Kobo survived the demise of Borders.

    and microtransactions work perfectly well (too well) in games - theres probably someone in publishing who has noticed this and has implemented/worked on integrating that into a website.

  8. Won't work because ... by CuteSteveJobs · · Score: 4, Insightful

    ... no one can be bothered to click 2c or 3c every time they stumble on a useful page. It's extra mental processing that distracts from what they're really doing, and the fact a page is useful might not be apparent until much later, long after they have left it. What happens if you make a payment and the advice on the page later turns out to be crap? Then there is the question of who the micropayments are going too: Some struggling blogger or hobbyist (worth supporting), a tenured academic (who is already taken care of financially) or a big company who needs my 2c much less than I do. You will also have issues like hosted content: are the payments going to the author, or the webhost.

    Some sort of payment scheme is a good idea, but not like this. Often you'll find someone throw themselves into a freeware project and get disillusioned and abandon it when issues like paying the rent take precedence. I think the old 'Donate $5 with Paypal' is a good idea, if you can get rid of the Paypal, Visa, Mastercard or any other intermediary who might block payments. http://www.pcworld.com/article/242470/wikileaks_suspends_publication_because_of_financial_boycott.html

    1. Re:Won't work because ... by MrAndrews · · Score: 4, Insightful

      EXACTLY this, actually. I mean, it'd be great if everyone clicked those buttons 15 times a day, but already today I've closed a tab and gone "doh! that was good! I forgot to click!"... and I set the bloody thing up. So yeah, there is friction in the model that is potentially unescapable and/or fatal.

      Also, I don't know that this is necessarily a business model anyone wants to depend on. It really requires you to be creating content that is not only good, but has enough reach that lots of people can see it, and like it enough to support it. It scales absolutely horribly, actually, for smaller acts. But then again, if you suddenly become popular, you could actually capitalize on your popularity, rather than just watching the views come and go.

    2. Re:Won't work because ... by Anonymous Coward · · Score: 3, Interesting

      This is what I'd like to see (all open source of course):

      1. One or more non-profit tip distributors run by associations of websites. They take money from people and distribute them participating websites on request.

      2. Websites indicate their participation in the program with a special HTML tag in the head section (includes a unique ID/cheksum of the website).

      3. Plugins for all the popular browsers that:

      - Record visit history of participating websites locally.
      - Add a button to the browser that lets the user "like" the (participating) website they're looking at.
      - Whenever people have the time, they bring up their visit history which tells them how many times they visited each website since their last "tip review" and if they "liked" it.
      - Still using the plugin, people chose which websites they'd like to tip and how much...
      - The tipping instructions are sent to the tip distributor who adds the tips to each website's account.
      - The visit history is cleared and restarted until the next "tip review."

      The plugin is important. It defers the decision-making to whenever is most convenient for people. It keeps track of visited websites so people don't have to stress over remembering each and every one. The important part is that it must be open source and totally transparent and keeps everything local except for the final step of tipping.

      People can either create an account with the tip distributor and deposit money into it, or they can simply pay via CC, pre-paid tip card, SMS at every tip review.

  9. Nickel & Dimed to Death by pjrc · · Score: 3, Insightful

    The trouble with microtransactions is they'll create an incentive for content publishers to "nickel and dime" readers.

    Just look at phone and tablet games with "in app purchase" models. A great idea in theory. In practice, it drives the entire game design from "pay to play" to "pay to win".

    If the content industry figures out how to make microtransactions work (a pretty big if)... just watch. Content will adapt from trying to attract and genuinely appeal to readers to a "nickel and dime" them to the maximum extent possible!

    1. Re:Nickel & Dimed to Death by BradleyUffner · · Score: 5, Insightful

      The other problem is that they don't actually nickle and dime you, they $1 and $5 you. They never seem to understand the "micro" part of micro transaction.

  10. Re:you realize you are asking on an ad supported s by 93+Escort+Wagon · · Score: 5, Funny

    commenters are, in general, a bunch of angry cranks who get a buzz out of spewing bile and hatred through their keyboard.

    Shut the hell up.

    --
    #DeleteChrome
  11. Probably won't work. by sootman · · Score: 4, Interesting

    The reasoning here is sound, and the theory has been borne out over the past dozen years since this was written:

    A transaction can't be worth so much as to require a decision but worth so little that that decision is automatic. There is a certain amount of anxiety involved in any decision to buy, no matter how small, and it derives not from the interface used or the time required, but from the very act of deciding. Micropayments, like all payments, require a comparison: "Is this much of X worth that much of Y?" There is a minimum mental transaction cost created by this fact that cannot be optimized away, because the only transaction a user will be willing to approve with no thought will be one that costs them nothing, which is no transaction at all... micropayments create a double-standard. One cannot tell users that they need to place a monetary value on something while also suggesting that the fee charged is functionally zero. This creates confusion - if the message to the user is that paying a penny for something makes it effectively free, then why isn't it actually free?... users will be persistently puzzled over the conflicting messages of "This is worth so much you have to decide whether to buy it or not" and "This is worth so little that it has virtually no cost to you."

    Clay Shirky, 12/19/2000

    Read the whole piece -- it has tons of good info. (And it's an entertaining read.)

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  12. Re:ads didn't work? by sjames · · Score: 4, Insightful

    The problem is people hosting sites taking no responsibility for the ads on it. I never objected to regular old ads (and still don't), but started using ad-blocker when ads started popping up over the text I'm reading, singing, dancing around, popping up, over, and uner, popping up after I've navigated away, or running horrid javascript and flash that managed to consume most of my CPU cycles. Then there's the very much NSFW ads that pop up even when the page I'm reading is G rated. I vener had problems with the virus laden drive by ads since I use Linux, but that is a very valid reason to block ads as well.

    There's only so many times you can kick someone in the crotch before they take countermeasures.

    If sites ask nicely AND vet the ads they present, people might be willing to allow ads on those sites. It's more work, and so the ads might need to pay more, but they'll also be more likely to be actually seen by someone. That might be a tough way to go though since so many advertisers have effectively salted the earth.

  13. Re:Where is the 0-cent option by Sardak · · Score: 3, Insightful

    Are you recording the lack of a click in some way, then?

    Which of these is more meaningful?
    60% chose 1 cent
    30% chose 2 cents
    10% chose 3 cents

    Or:
    90% chose 0 cents
    6% chose 1 cent
    3% chose 2 cents
    1% chose 3 cents