I am prone to microoptimizing things, and I would absolutely spend an objectively excessive amount of time and mental energy trying to avoid doing another search to save three cents.
I am prone to microoptimizing things, and I would absolutely spend an objectively excessive amount of time and mental energy trying to avoid doing another search to save three cents.
One alternative that could work, is to make a subscription service, and then reimburse the unused amount.
Like make people pay 20$/month, then do your micropayment system in the background, by the end of the month, refund them to difference if they didn't exceed that monthly value.
It creates a positive feeling instead of a constant background stress with every interaction.
This is indeed the theoretical expectation I had regarding micro-payments, but I was positively surprised to find out that I didn't care at all and in the end, I'm always positively surprised by the GPT-3 bill (I got much more value out of it than they charged me).
If they have a monthly fee I'll hesitate since if I reduce my usage for a unspecified while I'll never know if I should cancel it or not. It requires being able to predict the future, which is a cognitive cost I can't overcome.
It's easy to get users if you offer a paid service for free, but much more difficult to get people to pay for it.
(They have done surveys where people have said they would pay, but this is different to actually putting their credit card in and putting their money where their mouths are!)
I just also think there will be a non-zero proportion of people who absolutely promise and intend to pay, then won't put their credit card details in.
I also think there is a non-zero proportion of people who will search differently/less when every search costs them money!
Edit: similarity, when I'm building a side project now O avoid everything with a fixed cost as much as possible. $5/month for a relational DB? nope, let's see how I can store data and only pay for storage and access.
I don’t have that many subscriptions, so I’m not getting any fatigue ;)
I used to optimise things excessively (eg. when grocery shopping, phone spending pay as you go) - then I stopped when I realised it's not worth the effort compared to what I make in a day.
Micropayments are not "pay $2 or $3 per month" (either flat-fee or average), there are plenty of successful examples of that. Micropayments are "pay $0.004 or $0.02 for reading this article or using this service now". As Shirky noted, the problem with micropayments are not the technology or transactions costs. The problem is that they require a huge amount of user time and attention, relative to the value of the item being bought. This has not changed in the past 20 years.
[1] http://mx.thirdvisit.co.uk/2002/10/04/theacaseaagainstamicro...
I'm also annoyed I can't get a cell plan in my country that just charges me a flat rate per GB of data I use. Instead I pay a flat monthly fee that includes "free" call minutes and messages that I never use.
In both cases I'm sure I'm overpaying and cross-subsidising people who consume a lot.
I also use my unlimited minutes to answer all spam calls and immediately turn my microphone off, just in case they pay by usage, but that is somewhat less critical :)
I can totally see the other side of it, though. My brain is just structured such that the money-to-mental-effort tradeoffs don't work out for me.
Personally I prefer flat rate for unlimited everything if we're talking cell phone. It's not like I'll cancel it from month to month.
But for $random_site that is linked to from HN... no way I'll pay for a subscription. But I wouldn't pay 0.25 either for one article. Give up on the whale pricing and charge 1 cent.
This use case also needs a frictionless way of paying. No way I'm making an account for each site.