FairPay Book

Adaptively Win-Win
Customer Relationships

by Richard Reisman

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"Anyone responsible for monetizing digital content in consumer markets should understand this radically new perspective on pricing and how to maximize customer lifetime value. FairPay provides strategies and operational methods for creating better relationships -- to increase loyalty, market reach, and profits." - Shelly Palmer, Business Advisor, Author, Commentator

"Reisman unveils a new world of possibilities through an innovative and visionary methodology that introduces a reference platform for digital value exchange. FairPay is very versatile in its applications and compatible across industries. It is a great example of what disruption could look like in a new digital business era." - Lucila Pagnoni, News Corp Australia

"FairPay boldly explores the future of pricing from a co-creation of value perspective. Highly recommended for digital business entrepreneurs, as well as established firms working on their digital transformation." - Jim Spohrer, IBM and ISSIP.org

"A groundbreaking and definitive book on pricing strategy for the digital age. This highly innovative and practical work shows how enterprises can develop relationship-based pricing strategies leading to long-term customer relationships, based on principles of equity and fairness for both customer and supplier." - Professor Pennie Frow, University of Sydney Business School

"This compelling book explains how a radical shift in how we set prices can help enterprises become more customer focused. It promises to transform business by providing a new operational dynamic for maximizing customer lifetime value." - Professor Adrian Payne, University of New South Wales Business School


A special online companion site is provided
with links to references and other resources by chapter, 
selected newer posts, and updates; 
as well as a LinkedIn group for related dialog and networking.


Businesses everywhere are recognizing the need to be more customer focused, but struggle to see how. At the same time, our logic and business models for selling digital content and services are recognized as broken. Digital relationships enable services at low cost, but we still focus on discrete transactions in which prices and value propositions are set by sellers in ways that customers often see as exploitive.

This book explains how a revolutionary new approach to pricing can solve these problems. It proposes a new architecture for cooperative service relationships that is personalized and continuously adaptive. FairPay operationalizes a new logic for conducting ongoing business relationships that adaptively seek win-win value propositions in which price reflects value 

At a practical level, this book explains how this new relationship architecture applies to a range of industries. 
·         A variety of business use cases are described, with motivations, and guidelines for process implementation in incremental stages. 
·         These are primarily for B2C digital content and services, including journalism, music, TV/video, books, games, software apps, and information services, but also for real services. 
·         Problems with current best practices are explained -- including freemium and paywalls, all-you-can-eat subscriptions, and seller-set prices -- and how the dynamically managed participative pricing of FairPay can enable far better price discrimination. 
·         This has great promise for enterprises wishing to transform business by enhancing customer relationships, loyalty, market share, and profits.

At a conceptual level, this book suggests an “invisible handshake” in the form of participative “co-pricing” that dynamically seeks agreement on win-win value propositions. 
·         It seeks to approximate an ideal, perfectly discriminating price that is based on the actual value-in-context, as derived by individual customers during each of a series of transaction cycles -- to enable a fair sharing of the value surplus between provider and customer. 
·         It applies modern behavioral economics in choice architectures that are implemented using computer-mediated dialogs -- to enable deep relationship marketing, and lead to a bottom line accounting that tracks to holistic metrics of value.

Publication date: 9/16/16


I. The Big Picture -- A New Logic
  1. Introduction – Digital Disruption and Yesterday’s Logic
  2. Business Overview – Part 1: Basic Concepts – How and Why
  3. Business Overview – Part 2: Rethinking Prices
  4. A Brief Example: Digital Content Subscription Businesses
  5. Conceptual Perspectives
  6. A Top Management Perspective

II. Applications in Industry
  7. Making It Work – Operational Details, Tools, Continuous Learning and Adaptation
  8. Case Study: Journalism, Newspapers, Magazines, Video
  9. Variations: Music (and Games)
  10. More Variations: App Stores, Indies, E-books, Virality
  11. FairPay for Non-Digital Services
  12. FairPay for Nonprofits
  13. FairPay Reputation Management -- Databases and Platforms
  14. Learning the New Logic – Low-risk Testing, Sweet Spots, and Continuous Adaptation
  15. Increasing Sophistication and Variety
  16. Proving the Concept

III. Needs and Perspectives
  17. Practical Business Comparison To Conventional Methods
  18. Customer-Hostile Value Propositions
  19. Producer/Creator Perspectives – Sustainable Value Propositions and Compensation Through The Supply Chain

IV. Toward a New Economics
  20. Why it Works -- Behavioral Economics, Psychology and Game Theory
  21. New Dimensions of Value – Customer Contributions
  22. Societal Perspectives – Markets That Center on Human Values
  23. Competing on Vendor Lifetime Value
  24. Taking Action – Implementation of FairPay

The FairPay Manifesto


This is part of a collection curated by Jim Spohrer and Haluk Demirkan of The International Society of Service Innovation Professionals (ISSIP).
  • Business Expert Press is a leader in concise and applied learning resources, and partners with Harvard Business Publishing
  • ISSIP is an organization founded by IBM, Cisco, HP and several universities with a mission to promote Service Innovation for our interconnected world.
Collection Editors: 
  • Jim Spohrer is IBM Innovation Champion and Director of the IBM University Programs World Wide,
  • Haluk Demirkan is Professor of Service Science, Information Systems & Supply Chain Management, and the Founder & Executive Director of Center for Information Based Management at the Milgard School of Business, University of Washington (UW) -Tacoma

Richard Reisman, president of Teleshuttle Corporation, has decades of experience innovating in digital content industries, and is an accomplished inventor. He managed and consulted for corporations of all sizes, developed a variety of pioneering online services, and holds 50 patents licensed to serve billions of users.  He has been developing FairPay on a pro-bono basis, working with industry and academia on research, trials, and applications.  He has an AB in applied math from Brown University and an MS in operations research from Lehigh University (...more).

(Member discounts on the book are available through ISSIP.)