Market Curiosity: Exploring Markets And Systems

February 17, 2013

Castpoints > Use case > Making money from posting a valuable article

Filed under: Castpoints — Tags: — Jeff Fitzmyers @ 3:57 pm

How does Hania make money from her well done 9 page post about the Alice programming environment using the Castpoints system?

alice cover2

Option 1
Post to a very small blog (like her personal blog or a friends) for very little cost (say $1) with a “Max use fee” of say 20%. This means Hania gets up to 20% of income from the promotion of her post, or parts of her post.

  • Pros
    • With more valuable posts like this, Hania can attract traffic and valuable 3rd party posts, which can make her money via a small transaction fee.
    • Low cost.
  • Cons
    • In order to make money, someone has to find Hania’s post, decide it has value, and promote it. This might take a while.
    • Profit is limited.

Option 2
Post to a medium sized programing blog for, say, $10. Hania still gets up to 20% of income from the promotion of her article.

  • Pros
    • Definite exposure.
    • Others are incented to help Hania polish her post.
    • Fun to participate.
    • Low risk.
  • Cons
    • Profit is limited.
    • Medium cost to post.

Option 3
Post directly to Alice’s support or review forum for, say, $70.

  • Pros
    • Others are incented to help Hania polish her post.
    • Direct exposure.
    • Profit is unlimited since she has posted at her category’s apex.
    • Fun to participate.
  • Cons
    • Hania’s post cost is relatively high since she is competing directly at her content’s apex.
    • Higher risk. If her post is not really valuable, she will lose most of her post cost.

No matter which option Hania chose, her article will continue to generate income as long as people find it valuable. Income can come from 2 sources: people rating her post by putting their money where their mouth is, and people using parts of her post for their own endeavors. She will also have added to her reputation, and might be hired to create a similar article. Hania can also look to see if other applications have valued supporting posts like hers and if not, create them. Now that she has a proven formula for these types of posts, she can also reformat and refine another’s moderately valued post and post that by herself, and or in collaboration with the other author.

From A Promoter’s (Arbitrator’s) Point Of View
Promoters can profit when they can take something that seems undervalued and take the risk to promote it to a niche where it will be fully valued, and or repackage it to present it’s value in other ways. In option 1 and 2, the promoter could have made money by simply risking the post fee to copy and paste Hania’s post. The promoter has limited risk, and is exposed to uncapped income. Hania has no risk and is exposed to 20% of uncapped income.

The promoter could also recognize the value in how Hania organized her post and compose, and or collaborate with Hania, a post about that framework. In other words, “copyright holders” now hope their content is used as much as possible.

From A Reader’s Point Of View
Readers easily find the best posts about their area of interest by indicating that they only want to see posts with a rating of, say, 50% or better. Trolls, flamers, and agent provocateurs can go at it, even back their posts with a lot of money, but they will still be rated low, lose money, and have very low visibility.

Forum/Blog Managers Point Of View
Obviously, content managers love the fact that most of their daily hassles (dealing with trouble makers) are taken care of quickly and with no effort on their part. And via the small transaction fee, site costs can support themselves without ads. In fact, if they want to attract valuable content, managers can make the transaction fee, say, negative 10% for a while (site wide, or specific categories). This does not attract people who DON’T consistently add value because their value rating is too low to make money anyway. But it does attract people who DO consistently add value because now they can make an extra 10%. The content manager does not have to be a marketing genius, or hire one, for promotion.

+ Castpoints – How forum owners, posters, advertisers, and lurkers would benefit
+ Castpoints – Using Nature’s Economic Paradigm To Manage All Resources Resulting In Win-Win Transactions

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