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« Fork in the Road: Photos from the Set | Micropayments and "The Right Number" | Discipline of Disciplines »


Micropayments and "The Right Number"
August 24, 2003

(Selected republication of old entries from the pre-Movable Type journal...)

An earlier version of this entry appeared in my last AW Studio News Newsletter.

The Right Number Scott McCloud--author of Understanding Comics and Reinventing Comics two seminal nonfiction books in comic format about the history, form, potential, and future of comic books as a legitimate form of both literature and art--has released an online comic called "The Right Number." The significance here is the price: just 25 cents.

Scott wrote about micropayments in Reinventing Comics in 2000 (though he wasn't the first). The argument is that it would be easier and more fair to get a thousand people to pay up 25 cents for a piece of online content than it would be to get a hundred people to pay $2.50, especially if the online content is "worth" less than $2.50 to the reader. The biggest obstacle has been transaction costs, which, when the price is so low, can decrease the margins for a 25 cent online comic to lower than you might get when selling a $2.50 print comic (after printing costs, distribution, etc.).

But I believe micropayments truly have the power to revolutionize the relationship between content creator and his or her audience. It's only when independents like myself can price content at their actual worth that they can compete with the big guys and be adequately rewarded for their work.


I took a similar approach with my software program AudioBookMaker, using Amazon.com Honor System Payments rather than a more commonly used software registration/payment system like Kagi. While Amazon.com was more limited, I could sell AudioBookMaker 1.0 for $1.35 and Amazon.com only took 35 cents of that (15 cents plus 15% of the whole transaction) and a dollar of every registration could go towards development costs. To get that same dollar from Kagi (which, compared to its competitors, is very fairly priced), I'd have to charge $1.37 (with Kagi taking $1.25 plus 5%) In fact, my margins are better using the Amazon.com Honor System until I start charging over $11 for a piece of software. This is why you have so many shareware applications costing $5-$20, even when they're clearly worth so much less.

That said, the audience ultimately decides what the maximum amount is that creators can charge for their content, because if we price something too high and nobody buys, the product will fail. But the real barrier remains the minimum amount we can charge. Amazon.com has a minimum charge of $1 (for a margin of 60 cents) and Kagi has a minimum of about $1.27 (for a margin of about a penny). That's where a service like BitPass comes in, with minimum payments as low as 1 penny. Having this option gives independent creatives the freedom to charge what something is worth, and the opportunity to treat their customers (and more customers!) with respect.

Signing up for BitPass took less than a minute. I created an "online card" with the $3 minimum balance. I had the option of choosing to pay via Paypal or via credit card. I opted for credit card, since I figure PayPal will take a cut in addition to what Visa charges. So I might as well save BitPass some money. After all, I want this to succeed. I was brought immediately back to "The Right Number where $.25 was deducted from my new account. And then I got to enjoy McCloud's new comic--which, interestingly enough, is the first work of comic fiction I've ever read by him.

So check it out at scottmccloud.com. I get no kickback for recommending it. By all means, let Scott know what you think when you've read it, and please let me know about your experiences with BitPass. And maybe you'll get lucky and I'll charge a nickel for my next project instead of an even twenty bucks. And that's a good example of... The Right Number! (Thank you, thank you. Don't get up. Please.)

In the meantime, here are some other BitPass-using sites if your leftover $2.75 is burning a hole in your keyboard.

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Alex Wilson Writer

Alex Wilson writes fiction and comics in Carrboro, NC. His work has appeared/will appear in Asimov's Science Fiction, The Rambler, LCRW, Weird Tales, The Florida Review, Futurismic, ChiZine, Pif, and Dragon. Locus Magazine has called him a "promising new writer," and Publishers Weekly also has nice things to say.

Alex runs the audiobook project/podcast Telltale Weekly and the writer wiki Guidevines. He publishes the minicomic/zine Inconsequential Art. He is a 2006 Clarion graduate.



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