Better Revenue Models: Pay What You Want – Not Crazy After All These Years? - Business Model Innovation Hub2024-03-28T16:35:50Zhttp://businessmodelhub.com/forum/topics/better-revenue-models-pay?xg_source=activity&feed=yes&xn_auth=noI should have added one more…tag:businessmodelhub.com,2011-08-11:2478825:Comment:590722011-08-11T17:46:41.660ZRichard Reismanhttp://businessmodelhub.com/profile/RichardReisman
I should have added one more blog link as being directly on this range of impacts: <a href="http://www.fairpayzone.com/2010/09/business-model-generation-with-new-spin.html">http://www.fairpayzone.com/2010/09/business-model-generation-with-new-spin.html</a>
I should have added one more blog link as being directly on this range of impacts: <a href="http://www.fairpayzone.com/2010/09/business-model-generation-with-new-spin.html">http://www.fairpayzone.com/2010/09/business-model-generation-with-new-spin.html</a> Antony,
Thanks for picking up…tag:businessmodelhub.com,2011-07-22:2478825:Comment:548642011-07-22T21:43:37.905ZRichard Reismanhttp://businessmodelhub.com/profile/RichardReisman
<p>Antony,</p>
<p>Thanks for picking up on my suggestion that "It seems PWYW and FairPay are patterns, in that they deeply alter many other building blocks of the canvas, especially on the customer-facing right side." <br></br><br></br>I see FP as an architectural pattern much like "The Long Tail" and "FREE as a business model," both in general, and with important similarities to key aspects of each:</p>
<p>FP exploits a different long tail, one that I have described as a Long Tail of Price…</p>
<p>Antony,</p>
<p>Thanks for picking up on my suggestion that "It seems PWYW and FairPay are patterns, in that they deeply alter many other building blocks of the canvas, especially on the customer-facing right side." <br/><br/>I see FP as an architectural pattern much like "The Long Tail" and "FREE as a business model," both in general, and with important similarities to key aspects of each:</p>
<p>FP exploits a different long tail, one that I have described as a Long Tail of Price sensitivity, to sell to buyers across the full range of value levels and price sensitivities. See: <br/><a href="http://www.fairpayzone.com/2011/03/cutting-gordian-knot-of-price-setting.html">http://www.fairpayzone.com/2011/03/cutting-gordian-knot-of-price-setting.html<br/></a><a href="http://www.fairpayzone.com/2010/06/long-tail-of-prices-uncoil-it-with.html">http://www.fairpayzone.com/2010/06/long-tail-of-prices-uncoil-it-with.html</a><br/><br/>FP also has a close relationship to free and freemium models, in that it benefits from tiers, much like freemium, and that it captures high revenue from high-margin buyers while also generating scale revenue and economies from low-margin buyers. See:<br/><a href="http://www.fairpayzone.com/2011/03/reinventing-subscription-platforms-with.html">http://www.fairpayzone.com/2011/03/reinventing-subscription-platforms-with.html</a><br/><a href="http://www.fairpayzone.com/2010/06/fairpay-for-hulu-or-youtube-or-better.html">http://www.fairpayzone.com/2010/06/fairpay-for-hulu-or-youtube-or-better.html<br/><br/></a>FP has deep ramifications on the right side:</p>
<ul>
<li><div>Customer Relationships (acquisition, retention, upselling, and learning in an ongoing relationship dialog),</div>
</li>
<li><div>Segments (dynamic tuning to segments of one),</div>
</li>
<li><div>Value Propositions (unlimited factors), and</div>
</li>
<li><div>Revenue Streams (various kinds, recurring/subscription/usage)</div>
</li>
</ul>
<p>Much of the FairPay site, and the related blog, addresses these pattern aspects (even if not clearly labelled as such).<br/><a href="http://teleshuttle.com/FairPay/default.htm">http://teleshuttle.com/FairPay/default.htm<br/></a><a href="http://www.fairpayzone.com/">http://www.fairpayzone.com/</a></p>
<p> </p> Richard,
You said at the en…tag:businessmodelhub.com,2011-07-21:2478825:Comment:539932011-07-21T22:27:57.269ZAntony Upwardhttp://businessmodelhub.com/profile/AntonyUpward
<p>Richard,</p>
<p> </p>
<p>You said at the end of your post "It seems PWYW and FairPay are patterns, in that they deeply alter many other building blocks of the canvas, especially on the customer-facing right side."</p>
<p> </p>
<p>I've been thinking about this too...</p>
<p> </p>
<p>Care to share what you had in mind?</p>
<p> </p>
<p>Antony</p>
<p>Richard,</p>
<p> </p>
<p>You said at the end of your post "It seems PWYW and FairPay are patterns, in that they deeply alter many other building blocks of the canvas, especially on the customer-facing right side."</p>
<p> </p>
<p>I've been thinking about this too...</p>
<p> </p>
<p>Care to share what you had in mind?</p>
<p> </p>
<p>Antony</p> An example of sustainable PWY…tag:businessmodelhub.com,2011-02-17:2478825:Comment:386202011-02-17T17:15:28.130ZScott J. Woodhttp://businessmodelhub.com/profile/ScottJWood
<p>An example of sustainable PWYW.</p>
<p> </p>
<p>I see a correlation here in the Milwaukee, WI (USA) area with a food coop that has three locations (<a href="http://www.outpost.coop/">Outpost Natural Foods</a>). </p>
<p> </p>
<p>This coop provides organic food and other organic consumer goods that incur premium pricing that is in effect PWYW. One could opt for the less expensive alternatives to organics and therein lays the PWYW. The choice is to pay a bit more for organics or less for the…</p>
<p>An example of sustainable PWYW.</p>
<p> </p>
<p>I see a correlation here in the Milwaukee, WI (USA) area with a food coop that has three locations (<a href="http://www.outpost.coop/">Outpost Natural Foods</a>). </p>
<p> </p>
<p>This coop provides organic food and other organic consumer goods that incur premium pricing that is in effect PWYW. One could opt for the less expensive alternatives to organics and therein lays the PWYW. The choice is to pay a bit more for organics or less for the alternatives.</p>
<p> </p>
<p>The question then becomes: Pay me now or pay me later?</p>
<p> </p>
<p>Organics = pay me now, and the alternative is pay me later (health and environmental concerns).</p>
<p> </p>
<p>The long-term benefits to human health and the environment regarding organic food and organic consumer goods are known by the buyer who will pay this premium price (now). </p>
<p> </p>
<p>The coop is sustained by its membership. The membership is sustained by the coop.</p> Salvador, thanks -- I would b…tag:businessmodelhub.com,2011-01-24:2478825:Comment:367842011-01-24T22:27:02.738ZRichard Reismanhttp://businessmodelhub.com/profile/RichardReisman
Salvador, thanks -- I would be happy to hear about any plans relating to FairPay pricing, and possibly offer suggestions. Can be reached at fairpay at teleshuttle dot com.
Salvador, thanks -- I would be happy to hear about any plans relating to FairPay pricing, and possibly offer suggestions. Can be reached at fairpay at teleshuttle dot com. Nice proposal!!! I am thinkin…tag:businessmodelhub.com,2011-01-24:2478825:Comment:367822011-01-24T22:05:46.283ZSalvador Pérez Semperehttp://businessmodelhub.com/profile/SalvadorPerezSempere
<p>Nice proposal!!! I am thinking how to use this schema of prices for an ecommerce solution we are developing, just looking to include something different.</p>
<p> </p>
<p>Nice proposal!!! I am thinking how to use this schema of prices for an ecommerce solution we are developing, just looking to include something different.</p>
<p> </p> Hi,
At Panera’s restaurants…tag:businessmodelhub.com,2011-01-20:2478825:Comment:366682011-01-20T19:51:14.597ZSami Dobhttp://businessmodelhub.com/profile/SamiDob
<p>Hi,</p>
<p> </p>
<p>At Panera’s restaurants in ST Louis, 65% have paid the recommended price! not bad at all!</p>
<p>And it's close to breaking even, wouw!</p>
<p>Human nature is in fact what we want her to be...</p>
<p>Hi,</p>
<p> </p>
<p>At Panera’s restaurants in ST Louis, 65% have paid the recommended price! not bad at all!</p>
<p>And it's close to breaking even, wouw!</p>
<p>Human nature is in fact what we want her to be...</p> I know of a restaurant in Sin…tag:businessmodelhub.com,2011-01-20:2478825:Comment:363352011-01-20T04:47:50.550ZR Subramaniam Iyerhttp://businessmodelhub.com/profile/RSubramaniamIyer
I know of a restaurant in Singapore that has this model. The hook, however, is religion. The restaurant is run by a Hindu group associated with an ascetic who is known in the Indian community. So it would be fear or respect that makes people pay, and some pay more and others less based on ability. But what is interesting is that even non-Hindus frequent that place for the quality of food, so much so that it is crowded at lunch times.
I know of a restaurant in Singapore that has this model. The hook, however, is religion. The restaurant is run by a Hindu group associated with an ascetic who is known in the Indian community. So it would be fear or respect that makes people pay, and some pay more and others less based on ability. But what is interesting is that even non-Hindus frequent that place for the quality of food, so much so that it is crowded at lunch times. See a related article in the…tag:businessmodelhub.com,2010-10-16:2478825:Comment:271162010-10-16T04:51:27.645ZErwin Fielthttp://businessmodelhub.com/profile/ErwinFielt
See a related article in the Economist: Panera’s restaurants are thriving in the downturn <a href="http://www.economist.com/node/17209665" target="_blank">http://www.economist.com/node/17209665</a>
See a related article in the Economist: Panera’s restaurants are thriving in the downturn <a href="http://www.economist.com/node/17209665" target="_blank">http://www.economist.com/node/17209665</a> Yes there are some close appr…tag:businessmodelhub.com,2010-10-11:2478825:Comment:269742010-10-11T19:30:10.441ZRichard Reismanhttp://businessmodelhub.com/profile/RichardReisman
Yes there are some close approximations to that, and they work across a network of sites/publications -- katchingle .com and flattr.com.<br />
<br />
Interesting idea, and seems promising, with some apparent success.<br />
<br />
What FairPay adds to such PWYW variations is the idea of tracking feedback on how individuals pay, and selective/gated control of who gets such offers (based on that payment history), so only those who pay fairly continue to benefit. That can motivate prices that are much more fair to the…
Yes there are some close approximations to that, and they work across a network of sites/publications -- katchingle .com and flattr.com.<br />
<br />
Interesting idea, and seems promising, with some apparent success.<br />
<br />
What FairPay adds to such PWYW variations is the idea of tracking feedback on how individuals pay, and selective/gated control of who gets such offers (based on that payment history), so only those who pay fairly continue to benefit. That can motivate prices that are much more fair to the seller (and still acceptably fair to the buyer). That makes FairPay much more suited to broad commercial use by serious media businesses that need a fair profit, not just token contributions.