Joseph Javier Perla

I have already written about my distaste for advertising.

Sometimes, however, these newspapers and blogs manage to make something of value. A particularly hard-hitting expose in a newspaper, or a particularly helpful guide in a blog, offers to people real value. Nobody can create this kind of content every day, or probably even every week or month. A subscription subsidizing the page-filling fodder misallocates wealth. I want to pay for the value more directly, not indirectly through ads.

Or, more commonly, a blog post provides for me a little bit of value. Not $50/month in value, but perhaps 50 cents/month. No payment system can pass around payments like that easily for the user, especially without ridiculously large credit card fees. How can I tell Michael Arrington of TechCrunch that his site I find useful sometimes? Combined with the millions of others who find his site just a little bit useful, he can make some money directly from us.

Fortunately, I think TipJoy solves many of these problems. The site only launched a few months ago, so it has to grow quite a bit before it reaches a tipping point. Nevertheless, TipJoy designed their product beautifully.

Registration

First, for new users, creating an account takes a few seconds. Just click on the TipJoy button, write in your email, quickly create a password, and finish up. No credit cards required. A new user signs up by tipping, integrating the first-use with registration. Ingenious.

They follow a model that bar’s use where you can set up a tab and pay later. Readers get drunk tipping blogs here and there all around, running up a huge tab. Users only pay once the tab gets large enough to justify the credit card fees. Their model differs from the bar, of course: just like the tips themselves, paying the tab is optional. Nevertheless, through this system, TipJoy encourages people to sign up easily, and only over time pay off their tabs.

Tipping

Second, once signed in, tipping takes just one click. No annoying confirmation steps required. No complicated questions about how much you tip. You get one choice: 10 cents. Of course, you can tip more if you want. This encourages readers to tip generously around many sites across the web. The tab builds up invisibly behind the scenes.

When I first read about TipJoy, I knew that it, or a model very similar to it, would take over the web. I think it will take time. However, I will support this service by putting it up on my blog. Maybe, one day, I will write a post that many people find just a little bit useful, and I can finally monetize this blog :).