1. The Social Payment Platform for Online Content & Services in the World of “FREE”Social Bar, BerlinJune 1, 2010 Cynthia Typaldos, Founder 9/22/09 9:43pm PST

2. What will it take for Social Payments to succeed? user-centric no “mental transaction costs” tap into existing social networks financial transparency fun, entertaining, like a game These are Kachingle’s Guiding Principles!

3. Why would People Pay for FREE content? To build an online persona, achieve recognition, gain status … …. and to support a “voice”

4. What is Kachingle? Kachingle Subscriptions Micropayments Tipping

5. The Consumer Side of Kachingling Via the medallion, sign up for a Kachingle account and commit to a $5/month withdrawal from a Paypal account Whenever you encounter a Kachingle-enabled site, that you like and want to support, mouse over the Kachingle medallion and just click “Kachingle this website”, once At the end of each month, your contribution is shared among all sites that you “kachingled” during the period based on number of daily-visits to each kachingled site

6. Site Owners just add a Kachingle medallion to their site

7. The Kachingle Medallion After Before … when one decides to kachingle a site

9. Social Media Integration Push status updates through microblogging sites (e.g. Twitter and Facebook status integration) Additional Planned social media applications: Facebook app for comparing your contributions to friends and expressing your values iPhone app: Live access to statistics Compare your behavior to others

10. Vielen Dank! Thank You!

11. March 17th, 2010: Kachingle makes first “social cents” payments Carta: Now at 201.48 “My blog earned $65.08 via crowdfunding!” – Steve Outing Now at $136.03

13. At a price explicitly set by user

14. No financial limits

15. Co-exists with advertising

16. Enables viral & social behaviors

17. Decide once (for everything)

18. At a price implicitly set by user (equitably distributed)

19. Financial limits (bounded total $)

20. Co-exists with advertising

21. Enables viral & social behaviors

23. At price set by producer

24. No financial limits

25. Encourages copycat sites (e.g. music biz)

26. Creates barriers for viral & social behaviors

27. Decide once (for each subscription)

28. At price set by producer

29. No financial limits

30. Encourages copycat sites (e.g. music biz)

31. Creates barriers for viral & social behaviorsproducer difficult effortless Ease of use (reduction in “mental transaction costs”)

32. Problem to Solve For most news/content sites, advertising-based business models are not enough to pay the bills.

33. Paywalls and moving content to iPhone, Kindle or iPad are just plugging holes in the dike…

34. COMPLETE Financial Transparency Necessary Counterpart to Altruism to build Trust Every operation is recorded and can be tracked down Consumer’s Payment page shows sites that received part of the $5 contribution Sites see the same page and know how much money they are supposed to get

35. We now live in the world of “FREE”! Anything that can be digitized will be “napsterized” Newspapers Magazines Books Music Photos, Images, Art Video, TV, Movies $, €, ¥ Before FREE! Now

36. More choices sound great BUT… “Why more is less” — Barry Schwartz http://www.shirky.com/writings/fame_vs_fortune.html

37. Micropayments sound great BUT… “…the act of buying anything, even if the price is very small, creates what Nick Szabo calls mental transaction costs, the energy required to decide whether something is worth buying or not, regardless of price” — Clay Shirky http://www.shirky.com/writings/fame_vs_fortune.html

38. Users want to make their own decisions BUT… Experiment with musician in subway station — Robert Cialdini http://www.shirky.com/writings/fame_vs_fortune.html

39. Users may not trust a new service, a 3rd party in between BUT… “...if they knew for sure there money was absolutely, positively going where they want it to, that would make a difference” — Cynthia http://www.shirky.com/writings/fame_vs_fortune.html

40. Users don’t want work BUT… They want to have fun! — Bunny the K9 Kachingler