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| Advantages for Media Houses |
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Ask money from your audience without seeing 98% of them leave
Traditional online pay-per-view offers are all suffering from a huge drop in visitors between the free front page and the valuable content.
Recent studies show that up to 25% of people are interested in paying for content in the general mass market. For specialized markets, this number is even higher, plus the study has not taken into account the changes in customer perception a solution like Ipaya can cause. One asks why only 1% - 5% are currently paying for content if 25% are ready to do so? We believe the reason is that substantial problems exist in current offers / payment systems that are making users unhappy:
| | Not enough value for the money |
| | If buyers are rare, it's often because prices are too high or the goods don't look attractive enough. |
| Long, uncomfortable decision-making |
| | Standing on the front door of your content, the visitor is burdened with the difficult task of finding out if the content he is about to pay for is worth the money - before actually seeing the content. |
| Even less comfort for short articles and small prices |
| | Small payments in the 2 cents range could potentially open a whole new mass market. But for small payments, the decision-making is even more difficult, because the user can't compare the price with other goods. |
| Anxiety of a big bill of small payments |
| | Small payments have another inherent problem, because the user can't track them easily. He starts to fear that the big number of small payments he did would sum up to a uncomfortable big bill. |
| Entering payment data takes too long |
| | For shorter articles, the time spent on this step is often bigger than the time spent for actually reading your content. |
| People dislike creating logins and passwords |
| | You need to create them so that people can revisit your site. But it takes up even more time. And people hate to memorize passwords. They often forget them and lose access to your site. |
| Big time overhead on the wrong party |
| | Your customers are the ones with the money. Shouldn't the work actually be on the publisher's side? |
Ipaya solves all these problems in one go, increasing both buyer percentages and potentially the bottom line of the content owners. Here is the basic idea: People pay a fixed monthly fee to access as much content as they like on a huge, worldwide network. At the end of the month, the money of each user is distributed evenly to all pages he visited. Now let's revisit the problems we brought up:
| | Not enough value for the money |
| | While the perceived value for the money increases drastically - after all, huge masses of information are free for access! - the actual value is more limited, because the user doesn't have the time to access all the information. After a short period of euphoria, he will go back to using the service for accessing few regular sites. In short: he is much more likely to sign up, though rather because of the possibilities than hard benefits. |
| Long, uncomfortable decision-making |
| | There is just one decision to make: determining whether one should buy a subscription. After that point, no decision-making is necessary anymore, since one can just access everything. Imagine a user that has signed up to Ipaya because of a different site and now visits your site: The only decision he has to make is to click your link, and you instantly earn money! |
| Even less comfort for short articles and small prices |
| | Of course, short articles are simple to access as well. This also offers equal possibilities for small publishers that don't create lots of content. Now even they can be accessed and get paid. |
| Anxiety of a big bill of small payments |
| | Since the fee is fixed, the user doesn't have to worry about too big bills. |
| Entering payment data takes too long |
| | With Ipaya, this step is needed only once to access countless sites. |
| People dislike creating logins and passwords |
| | People create a single Ipaya login that allows them to access all information on any server. Less to memorize, and less to forget |
| Big time overhead on the wrong party |
| | To access single pages, there is no time overhead for the user anymore. The publisher has to drop a few program pieces in place, but even this step can be done in less than two hours for small sites. |
Because of all these advantages and improvements over traditional online payment offers, Ipaya can increase the number of paying visitor to your site towards the full current potential of people interested in signing up at your site to pay for content, 25%.
In addition to people signing up for Ipaya at your site, there are people that have already signed up at another site. These visitors are even more attractive for your site:
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| | • | They don't need to think whether your site is worth its money, since they have already paid. |
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| | • | They have no anxiety that their visit will exceed their spending limit - it's a flat fee after all. |
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| | • | They don't have to go to a credit card form. With one single click, they both visit your page and pay you at the same time. |
With a growing number of sites using Ipaya, a growing number of people already have an Ipaya subscription before they even visit your site. We believe that since the internet is so big, the percentage of visitors who already have a subscription will grow steadily and reach 90%, when these people are combined with the people that sign up at your site. This means that 90% of all users visiting your site will have a valid Ipaya subscription, and will thus be able to access your content and pay you money for every page they visit. |
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Revenue calculation example
Publication X has 5,000,000 monthly visitors, of which 100,000 currently pay $30 per year / $2.50 per month to access a large "subscribers only" area on the site containing valuable additional articles and resources. The publication considers using Ipaya in the future. For the sake of this comparison, we have to define a few variables: We expect that 20% of all visitors have a Ipaya subscription - a very low guess, working against Ipaya. We also expect that Ipaya subscribers accessing publication X will typically spend 80 page views here, and that every visited page results in a average payout of 1¢.
| | One-site subscription | Ipaya |
| Number of visitors total | 5,000,000 | 5,000,000 |
| Percentage of subscribers | 2% | 20% |
| Number of subscribers | 100,000 | 1,000,000 |
| Sum every subscriber is paying / month | $2.50 | $0.80 |
| Total revenues / month | $250,000 | $800,000 |
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For a detailed look at subscription costs and money available for distribution with Ipaya, during introductory months and after, please refer to the section Rates.
Lower costs
Traditional Pay-to-see systems require a substantial programming effort to implement: Not only a payment interface has to be created, but also account management systems because people would like to revisit the content they paid for, and they need an account at your site for this purpose. With Ipaya, implementation is much simpler, since all these things are done by us.
An Alternative to shrinking ad revenues
With ever diminishing payouts coming out of banner ads, Ipaya could emerge as an interesting alternative revenue model. Since other payment systems let up to 98% of your visitors turn away, they don't work well with mass-market publications, potentially shrinking and completely changing your audience.
Ipaya will also make your audience smaller, but not to the point where you don't recognize it anymore: You can still be a mass market publication. And you gain solid revenues from every reader. Along these lines of thought, please don't forget that a simple change from "free" to "pay" will most likely infuriate your customers. If you plan to go this route, we emphatically suggest that you improve your product for your paying visitors in the process, e.g. removing bugging ads, improving content and streamlining page design.
Integrate your different media branches virtually, at low expenses
If you've got different publications already going strong, you might think about integrating them all and creating a flat subscription system to access them. As good as this idea sounds, it takes long to implement and adds significant expenses in your engineering departments and customer care. By deploying Ipaya as a virtually integrating subscription among all your publications, it's turn-key nature will help you achieve nearly the same thing while keeping costs low and let you concentrate on your core strengths.
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