how to monetize your website with tibdit micropayments
TRANSCRIPT
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
pocket change for the internet
tib™ /tɪb/ pl. tibs, v.tr. tibbed s.a. tibber, tibbee
noun A small online payment, typically around 15p (25¢), sent by a tibber to a tibbee, either as payment for access to content or a service, or as a gratuity.
verb A request to tibdit to transfer a micro-payment, with a value previously specified by the tibber, to the tibbee.
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
in brief
Our platform allows anyone to send tiny payments and
donations to publishers of online content or services.
Websites and creators can collect revenue from these
tiny payments quickly and simply. They can be used
either as access fees, or simply as tokens of appreciation.
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
problem
There is more content online than ever, but revenue and
quality are dropping even as consumption is increasing.
There is no simple way for users to tangibly express
appreciation for online content they value.
Publishers and creators are forced to choose between
giving their work away for free, smothering it in
advertising, or forcing customers to subscribe.
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
need“ My hope [is] that ... readers begin paying for the
journalism they want. That way, journalists will again be
beholden mainly to their readers, rather than catering
increasingly to advertisers or other agendas. ”
― Walter Issacson, President and CEO of the Aspen Institute
former Managing Editor of TIME Magazineformer Chairman and CEO at CNN
author of the Authorised Biography of Steve Jobs.
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
solutionWe provide a simple way for websites to receive payment for content or services without the need for a bank or merchant account.
Bitcoin provides a universal and inclusive means to transfer payments to publishers cheaply and quickly.
Users set a personal micropayment amount in their own currency and pay with their usual credit or debit card.
A payment or donation can be sent to any site hosting a tibdit button or link with just two clicks.
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
examplesShow appreciation to a blogger
Read trustworthy product reviews
Browse a website ad-free
Reward a web forum post or Q+A site answer
Support a volunteer run niche-interest site
View more profiles or send more messages
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
the teamJustin — Founder and CEO, business analyst and solution architect. He is always frustrated by things that could and should have been built more intelligently.
Pauline — Co-founder and COO, Justin met Pauline when he was consulting in 2005-2007. She brings decades of operations management experience.
Iain — Iain founded the worlds biggest bitcoin meetup, and has nine years of experience in customer acquisition.
Jan — Mentor and bootstrap investor with twenty-five years of experience in the payments industry. Jan’s enthusiasm for the concept ‘lit the fuse’ for Justin.
Adam — A qualified solicitor and well known regulatory and compliance consultant, Adam is often seen on stage presenting at London fintech events.
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
marketThe European micropayments market is currently worth €6bn [2011], and is set
to grow to over €15bn by 2015, 15% compounded annual growth rate
― Value Partners (digital media & management consultancy) (2011)
“The micropayments space is the Holy Grail of the internet entrepreneur”
― Andrew Hilton, Director, CSFI, London (2011)
Newspaper publisher revenue is decreasing by billions of dollars every year:
― Source: Newspaper Association of America via Pew Research Centre
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
competitorsFlattr
Fixed monthly spend, distributed equally between recipients
Focused on microdonations for social good
tibdit: is all-purpose, commercially focused; doesn’t plunder earlier tips to pay for later ones
Blendle Each article has its own price
Success likely mostly due to Netherlands / Dutch walled-garden
Incorporates the content delivery platform
tibdit: is not just for articles; is global; users define their own micropayment amount
ChangeTip 750ᴋ VC funding despite minimal traction and a model similar to earlier failed attempts
Focused exclusively on microdonations/tipping, and requires tippers to have bitcoin
tibdit: original, simpler, patentable business model; tibbers can use VISA or MasterCard
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
revenueWe collect 1.5 pence for each tib that is spent.
Card processing fees and other scaled costs such as
hosting account for less than half of that.
As a single-simple-product company, staff costs will
benefit from significant economies-of-scale.
Spending tibs online will eventually become as
automatic as switching on the lights when it gets dark.
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
marketing
directly approach UK print
and online publishers
engage with journalists and
blogger networks
will work with a leading
WordPress plugin developer
Our product has a powerful intrinsic viral loop. To initiate it we are:
Iain, tibdit’s Business Development Manager, has almost a decade of
experience with customer acquisition, and is a rare cold calling talent.
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
funding£140ᴋ seed capital:
Fund business development activities
Pay all staff a minimal income
Operate live for up to twelve months
Growth capital: £500ᴋ to £1ᴍ required after 10 - 12 months operation
Break-even at about 2.5 years – 1ᴍ users, tibbing 15p twice per week
After five years: 8 million users, tibbing 2-3 times per week, average 15p tib
After tax profit in financial year five projected at over £6m
u.s. patent application no. 61/938,980 © 2014 tibdit limited. all rights reserved
exitWe have a solution for a large segment of The Micropayments
Problem, and can look forward to a significant company valuation.
Visa paid $190ᴍ in 2011 for five year old PlaySpan, an
in-game micropayment platform with est $7ᴍ annual
revenue. 3ᴍ customers tibbing weekly would match this.
PayPal paid $800ᴍ in 2013 for six year old Braintree.
Braintree was processing $12ʙ/year. 100ᴍ customers
spending one tib per day would give similar volume.