Microrefunds

This Crowdfunding proposal by Brad Templeton, stipulates that every usage of creative content would trigger an automatic micropayment, but with a clear don't pay function that users could use to repudiate the payment claim, therefore making paying the default option.

Description

Brad Templeton [1]:

"My proposal to merge the "everything is free" model that Napster temporarily promoted with a system that rewards creators, but doesn't need a flat-fee subscription and thus can be used universally.

Shareware (effectively an optional "Pay" button) makes getting something free the default, while paying for it requires special action. I suggest reversing things, so that paying for something is the default, and not paying requires special action. As long as payments are small and predictable, or clear and manageable, they could just be made automatically as media are downloaded or played.

However, those who don't want to pay, for any reason, could select within 60 days to get a refund -- a microrefund back to their account. They might be poor. They might find the price too high. They might not like the product. They might have found out something later that suggested the creator was trying some trick, or overcharging. It doesn't matter a lot, as long as most people just take the default action and don't feel too bothered by it. And that's the way it is with default actions -- most people take them.

One could imagine putting a "don't pay" button on applications to replace the "pay" button of micropayments. However, my real goal with these repudiable micropayments is to not have any button at all to think about.

A more workable approach might be to present the user with no questions at all, but the simple ability to review all charges at a later time, such as once at the end of the month. A person reviewing their charges could negate any charge they didn't like, getting a microrefund. By doing this in "batch" mode, the "thought cost" becomes much more tolerable. In addition, the system could be devised so that only the most unusual (higher than normal) charges are at the top of the list for review, so that users don't have to review or think about minor charges at all.

Another way to think about this would be to imagine that all content under such a system comes with an implicit "money back guarantee" so you no longer have to worry about what you purchase." (http://www.templetons.com/brad/dontpay.html)