This story appears in the
December 2002 issue of
Entrepreneur.
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It seems most Internet users are strongly resisting the
inevitable move from free to paid content. A recent study by
research firm Jupiter Media Metrix found that 70 percent of adults
online "cannot understand why anyone would pay for content
online." Of course, nothing is quite that simple. That leaves
a healthy 30 percent of the large Web populace willing to open
their wallets for the right incentives. Since you can't hang
your Net hat on advertising revenue anymore, paid content is a
reasonable avenue for some online entrepreneurs to explore.
Popular technology news portal and community Slashdot.org is
taking a successful dangling-carrot approach by offering ad-free
subscriptions to the site at the rate of $5 per 1,000 ad-free
pages. This low-cost program rewards dedicated users with an
improved surfing experience while bringing in needed revenue. News
site Salon.com
falls under a more familiar subscription-based pay-for-content
model. "Garnish" articles are free, but the meat of the
site is only available by subscription. Salon Premium also lures
customers with extras like ad-free viewing and e-books. The site
reached mid-2002 with nearly 40,000 paying readers.
What might work for your growing business Web site depends on
the level of content you provide and the value proposition
you're able to offer customers. Premium services and multimedia
also draw in users. Experiment with ad-free offers, bonuses and
flexible pricing options until you hit the sweet spot of what
customers are willing to pay for.
A study by the Online Publishers Association and ComScore
Networks shows U.S. consumers paid $300 million for online content
in quarter one of 2002, up 155 percent from 2001. However, a small
number of sites like Yahoo! and ConsumerReports.org account for most of that.
Getting in on this trend requires savvy and sensitivity to customer
wants.
