This expands on and updates a brief introductory article in Harvard Business Review (2013). Marco Bertini was my co-author on both.
This new paper more fully presents the core ideas behind FairPay, and how they fit into a flexible architecture for better pricing that moves the exchange between seller and buyer from the transactional to the relational.
As commerce continues to shift to the digital domain, organizations respond by improving and evolving their approach to creating value for customers. When the time comes to convert digital anything into cash they can bank, however, the same organizations seem stuck in time. The purpose of the article is to highlight this inconsistency and, importantly, propose a solution. First, we leverage the literature on freemium and participative pricing mechanisms to lay the foundations for a revenue architecture fit for the digital economy. We argue in favour of three building blocks: empowerment, dialog, and reputation. Second, we describe FairPay as a promising configuration of these factors.We hope you will read it, and find it helpful -- and will let us know what you think.
Marco is associate professor and department head of the marketing subject area at ESADE (a world-class business school in Barcelona, Spain). He is a prolific author in HBR and other leading business and academic journals, and has been working for some time on many of the strategies that FairPay builds on. He completed doctoral studies at Harvard Business School, and was previously on the faculty at the London Business School. (More background on Marco and his work.)
My background is as a practitioner in online media and e-commerce, and the technologies that drive that (bio).
My great thanks to Marco for this very rewarding collaboration (and to Dan Ariely and Ayelet Gneezy for connecting us). We found much synergy in our ideas, and the citations in this paper highlight how much of Marco's work is supportive of the strategies that FairPay draws power from.
I am very pleased that this new publication presents these ideas concisely and compellingly, and will bring awareness to more people about this new logic to power a more win-win approach to commerce.
More about FairPay
(My work on FairPay is pro-bono. I offer free consultation to those interested in evaluating and applying FairPay, and am happy to address questions.)