January 16, 2006
Search Tech Opportunities- Improvement #2: Micropayment System
Following up my post on the opening of the search tech chain, this is a second improvement that I would like to see:
My last post was on opening up the APIs. While I would hope that we can start in beta or have some level of usage for free (ala Amazon’s API), I expect that at some point there will need to be a parallel effort to sort out the micropayment issues. Some thoughts:
- The current RSS feed model of the user going to the content site works fine for the content site, but it is difficult for the search engines to create a revenue stream this way.
- The Feed-plus-ad approach seems to be another approach, but the problem is that cascading value-add services will end up with a tremendous amount of ad space (unless there is some sort of coordination).
- The Amazon model of a small payment per use seems like a fair one to me (and relatively easy to execute on)
- Perhaps there is a more advanced one with respect to sharing advertising revenue or giving some real estate on the ultimate browser view for advertising to be delivered by the originating site.
Like the Blog and RSS feed approach, I would hope that some innovative companies could get this ecosystem going without the need for a payment system right away (free beta and ongoing small usage for free), but It seems to me that longer term there is a lot of innovation potential in this area!