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Sunday, October 22, 2017

Abstracting the payment intermediary

Years ago realized there was one payment model lacking on the web, which is pay after, like many people in US experience at a fine restaurant. On the web pay models are focused on pay before. And subscriptions even focus on trying to get people to pay before even created.

If we abstract from information producer to information consumer the web solves the distribution problem, but does not necessarily handle the business trust problem.

One might imagine an intermediary there, where with pay before models that can be VERY complex, and has issues of returns as well as heavy litigation potential, while with pay after both should be minimized.

But then the problem is, how do you expect people to pay at all after they gain information product?

Because I say, most people will pay for value received, once they make a buying decision, if payment is possible.

An abstracted business intermediary could potentially then, work to make sure information producer was verified, like as to owning information product and having a good business record. And provide a portal for information consumers who could learn to trust the intermediary, and be trusted to pay when they made a buying decision for a particular information product.

For example, have given idea before that a person could use software, until decided to pay for it, or did not actually need or want it, and be trusted to simply delete off system on their own. Though also noted if they DID cheat at least in that scenario, you could catch if came back later for an upgrade, if one was put forward.

Yeah but like with news organizations they could simply let people pay for an article after reading, if they so chose. Have read articles if had the money, might pay say 99 cents, if felt was really good. Of course, is my idea. Now they either give away for free, relying on advertising, or push people to subscribe, for things not even created yet. Though yes archives are there but I don't think people are into bingeing on news archives.

Still that is the big hurdle. In a restaurant? Hard to dine and dash is the phrase. With information? People need to feel value there and need to pay if that has been established. But would they?

Yeah daunting. Could that be crowdfunded though? I have no idea. Will put here and edit this post as usual as debate with myself.

The pay first model dominates the web, but does NOT dominate ANY other business systems around the globe--which is a bold claim.

People pay contractors after work is done. Pay at fine restaurants after food is consumed. Pay for clothes after tried on. Pay for cars after test drives.

Movies pay before, of course and other entertainment products. But also is why have trailers and various other promotional to try and help people figure out--is quality there? And also, novelty is key there. Novelty is an entertainment thing, but also not over all. Like with music? People prefer to hear a song, maybe even quite a bit, before are sure really like it. I know I do.

Yes, still need novelty with music, but unlike with movies, will NOT accept that as a reason to be forced to pay upfront, am thinking for most people. Definitely would not accept myself. Need to hear that entire song, and more than once, to figure out if I like it.

Restaurant business includes fast food where you pay before, which is a part but not all. Is it dominant? I don't think so. Television industry is HUGE in entertainment, without a pay first. With cable is more like pay for what exists, but subscriptions definitely add in a wrinkle. Otherwise television is relying on advertising. Interesting. Seems like entertainment industry gives me more fits with that assertion than elsewhere, which intrigues me.

Reality is, people like to determine quality, first.

Like have heard of people going to stores to try and get a feel for things or try them out before buying off web at best price.

Totality of the web pay upfront model is about distrust of the consumer, in my opinion.

Have seen cases where executives have ranted about piracy and other varieties of information theft. I think we simply have been limited by business people who think most humans are naturally thieves or there might be SOME cases of the pay after model around by now on web. If there are any, please let me know!!!

As one addendum to earlier ideas, have noted that with subscription models that DO work, people have a lot of content already available. Like sign up for video streaming service and binge watch? You can get your money's worth in a day or two.

Oh, with this model just thinking here, information producer would get 95% of revenue, with payment intermediary company relying on maximum of 5% with probably less if actually worked well.

People who produce should get most of the revenue. Intermediary would just be facilitating business transactions by limiting risk to information producer and information consumer.


James Harris

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