Re: Will They Pay? was RE: Salon.com and taller ads

From: John Gaskill <gm_at_info-central-usa.com>
Date: Thu 17 May 2001 14:30:15 -0500

JOHN GASKILL <gm_at_info-central-usa.com> WROTE:

>The fact that people don't want to pay is nothing new.
>People around the world would prefer to get things
>free if they could.

>The reality is that people ARE paying for content on
>the web delivered through web sites. The WSJ Interactive
>version is only one example. You hit the nail on the
>head in your own self-conflicted statements, first alleging
>that people will not pay, then conceding that they will
>and admitting that you do. You pay for the NYT by
>giving them your name and e-mail address.

TO WHICH MICHAEL MARTINEZ <michael_at_xenite.org> REPLIED:

>Actually, the reality is that MOST people currently
>refuse to pay, according to the latest research.
<small snip>

>http://www.onlinepublishingnews.com/htm/n20010212.053895.htm

>The same study, by Forrester Research, indicates only
>10% of Americans are willing to pay for content (all
>types combined), whereas only 4% are willing to pay
>for news. <small snip>

That MOST people are unwilling to pay for content
is no different than most people not paying for content
in the offline world. If a news provider could attract 4%
of U.S. web surfers to a paid subscription model the
result would be 2,600,000 x $ X.XX (assuming a
U.S. adult web surfing population of 65,000,000).

Now I don't know about you, but I would consider
a 2.6 million paid subscriber base all right. And, if
I could get $10.00 a pop for those subscriptions
each year that would be $26,000,000 in revenue.

Now I also realize that if frogs had wings they
wouldn't bump their butts when they jump, but the
average site operator does not have to convert
4% of 65,000,000 free subscribers.

The monetary equation is about the total number
of eyeballs if you adopt the "free use model" and
your content is not exclusive.

The monetary equation changes if you have a
"paid subscription model" and are less concerned
with the number of eyeballs than with finding
eyeballs who pay. This changes your marketing
and advertising approach completely. It also makes
your site and brand more valuable to potential
advertisers and sponsors.

I agree with you Michael that MOST internet users
don't pay and don't want to pay.

I also agree that many site operators who try to
charge for content will have a rough go of it.

But I disagree that the reason they would have a
rough go is because people are unwilling to pay.
If people are unwilling to pay it is because the
content the site offers is not compelling enough
to attract a paid audience, not because they
are unwilling to pay.

Regards all,

John

John Gaskill
jg_at_info-central-usa.com
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Received on Thu May 17 2001 - 14:30:15 CDT