Gov/en/Portal:R&D/Innovations:Subscription: Difference between revisions
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{{KidsIntro|A subscription means | {{KidsIntro|A subscription means paying a small amount every month to use the platform, instead of a big fee each time, like a monthly pass. The price only covers what the platform really costs: nobody makes a profit.}} | ||
{{ExpertIntro|Initial hypothesis for | {{ExpertIntro|Initial hypothesis for WikiDeal's revenue engine: a CHF 1/month subscription billed at transaction time, intended to run the platform at real cost with no third-party profit. Subscribers would also be members with voting rights and a path to co-ownership. Revenue would first cover Rewards, operating costs and open-call awards. Subscriptions could also be offered.}} | ||
{{ArticleSummary| | |||
* [[#governance-costs|Governance costs, no profit]] | |||
* [[#at-a-glance|Subscription model at a glance]] | |||
* [[#benefits-and-commitments|What you gain and our commitments]] | |||
* [[#pricing|Pricing structure]] | |||
* [[#offered-subscriptions|Offered subscriptions]] | |||
* [[#access-rules|Access rules and billing at transaction time]] | |||
* [[#where-the-money-goes|Where the money goes]] | |||
* [[#scalability|Scalability (illustrative, non-binding)]] | |||
* [[#revenue-and-supporters|Subscription revenue and supporters]] | |||
* [[#naming|Why "subscription" and not "membership"]] | |||
* [[#see-also|See also]] | |||
* [[#state-of-the-art|State of the art]] | |||
}} | |||
__NOTOC__ | |||
= The Subscription Model = | = The Subscription Model = | ||
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''Wiki Core · Concept. This page presents an initial hypothesis, proposed as a basis for discussion.'' | ''Wiki Core · Concept. This page presents an initial hypothesis, proposed as a basis for discussion.'' | ||
<span id=" | <span id="governance-costs"></span> | ||
== | == Governance costs, no profit == | ||
The first argument for the paid subscription is simple: it aims at guaranteeing that the platform runs | The first argument for the paid subscription is simple: it aims at guaranteeing that the platform runs without profit for a third-party company. Rather than an absolute "real cost" which is difficult to define globally, the subscription funds a policy of priority management for good governance: keeping the community stimulated, paying resource persons, answering fundamental questions, supporting whistleblowers, and improving the model. | ||
This is intended to be the exact opposite of the model of large speculative platforms, whose business logic is sometimes compared to offering the first dose for free, then overcharging users once a dependence has been created. Here, users would pay a small, transparent price from the start, the price would stay aligned with real | This is intended to be the exact opposite of the model of large speculative platforms, whose business logic is sometimes compared to offering the first dose for free, then overcharging users once a dependence has been created. Here, users would pay a small, transparent price from the start, the price would stay aligned with real governance needs, and users would never be the product. | ||
<span id="at-a-glance"></span> | <span id="at-a-glance"></span> | ||
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|- | |- | ||
| Annual increase | | Annual increase | ||
| Under | | Under discussion, up to 5%/year (initial working hypothesis, draft [[Gov/en/Portal:R&D/Open-Calls:Progressive-Subscription-Increase|Open Call]]) | ||
|- | |- | ||
| Billing method | | Billing method | ||
| Line 35: | Line 49: | ||
| Inactive months | | Inactive months | ||
| Retroactive billing | | Retroactive billing | ||
|- | |- | ||
| NOT in | | NOT in | ||
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CHF 1/month is not intended as a price for a service: it would work as a subscription to a community-governed commons. Every franc is intended to go back to the community. | CHF 1/month is not intended as a price for a service: it would work as a subscription to a community-governed commons. Every franc is intended to go back to the community. | ||
<span id=" | <span id="benefits-and-commitments"></span> | ||
== | == What you gain and our commitments == | ||
To put it from the user's perspective, the subscription is designed around concrete benefits and systemic commitments. These arguments would be presented clearly to users when they create an account and subscribe. | |||
=== Your direct benefits === | |||
* '''The AI Assistant (Chatbot):''' The subscription is intended to include, as soon as possible, access to an AI assistant (text and audio). It would take users by the hand, help them formulate their needs, find the right contracts, and navigate the platform safely, saving precious time. | |||
* '''Voting rights and governance participation:''' Subscribing is intended to guarantee the possibility of becoming a co-owner of the platform, with a voice in its decisions. | |||
* '''Marketplaces at cost price:''' Use of every marketplace would be charged based on the principle of real cost. While the exact definition of "real cost" depends on each [[Gov/en/Portal:R&D/Innovations:User Groups|User Group's]] policy (what is paid in CHF, what is exchanged in [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]], what relies on volunteering), the platform guarantees the principle: no extractive profit. | |||
* '''Fair access to dispute management:''' Every subscriber would have equitable access to dispute resolution and to the developments of the platform. | |||
=== Our systemic commitments === | |||
== | * '''All contract templates are free to read:''' They could be copied and pasted freely under a [[Gov/en/Portal:Legal/Free-Licensing|free license]]. Only signing a contract under the aegis of WikiDeal would require an active subscription. | ||
* '''Honest revenues only:''' People working for the platform would receive salaries at standard market rates. There would never be extreme bonuses, and no possibility of reselling the company. | |||
* '''Support for vulnerable people:''' The platform intends to provide incentives and levers for people in vulnerable or fragile situations. | |||
* '''All contract templates | |||
* '''Honest revenues only | |||
<span id="pricing"></span> | <span id="pricing"></span> | ||
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* '''Monthly:''' CHF 1.00 per month | * '''Monthly:''' CHF 1.00 per month | ||
* '''Annual:''' CHF 10.00 per year | * '''Annual:''' CHF 10.00 per year. Written in black and white: the annual rate covers 12 months at a reduced price. Paying a year in advance costs CHF 10 instead of the CHF 12 that 12 monthly payments of CHF 1 would total, a discount of CHF 2 (about 17%) for early annual payment. In practice, many scenarios could coexist: some users would cancel or suspend their subscription, some would add donations on top, some would obtain months of subscription in exchange for Karma tokens earned through contributions, and advantages for contributions are being considered. On average, the working assumption is therefore CHF 10 per user per year. New users would be encouraged from the start to take the annual subscription; the monthly option at CHF 1 is intended for cautious people who prefer to start small. | ||
* '''Annual value increase:''' a possible annual | * '''Annual value increase:''' a possible annual increase of the subscription amount, of up to 5% per year, is under discussion as an initial working hypothesis through a draft [[Gov/en/Portal:R&D/Open-Calls:Progressive-Subscription-Increase|Open Call]] (not yet launched); no percentage is decided. A related but distinct question, a possible annual percentage increase on rewards, is under study at [[Gov/en/Portal:R&D/Innovations:Annual Value Increase|Annual Value Increase]]. | ||
=== Why CHF 1/month? === | === Why CHF 1/month? === | ||
The CHF 1/month price is not arbitrary. It is intended to be: | The goal is a low price, accessible to all: CHF 1 is approximately 1 US dollar and approximately 1 euro. This equivalence is approximate; what matters is that the price remains an acceptable amount for everyone, and that it is a base rate. The CHF 1/month price is not arbitrary. It is intended to be: | ||
* '''Globally accessible''': approximately equivalent to 1 EUR and 1 USD in most markets (approximate, not exact) | * '''Globally accessible''': approximately equivalent to 1 EUR and 1 USD in most markets (approximate, not exact) | ||
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The subscription is designed so that it can also be offered, not only bought for oneself. Three options are envisaged, proposed as a base for discussion: | The subscription is designed so that it can also be offered, not only bought for oneself. Three options are envisaged, proposed as a base for discussion: | ||
# '''Solidarity gift:''' people with sufficient income could offer subscriptions to others. | # '''Solidarity gift (1+1):''' people with sufficient income could offer subscriptions to others. A user could choose to "buy one for me, and offer one to someone who needs it" (as a one-time gift or a recurring donation). | ||
# '''Supported request:''' a person could fill in a request form to benefit from an offered subscription, mentioning in their profile how they engage in the community, for example as a volunteer. | # '''Supported request:''' a person could fill in a request form to benefit from an offered subscription, mentioning in their profile how they engage in the community, for example as a volunteer. | ||
# '''Third-party payment:''' the subscription could be paid by a third party, for example an association that engages volunteers and offers them the subscription. | # '''Third-party payment:''' the subscription could be paid by a third party, for example an association that engages volunteers and offers them the subscription. | ||
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# '''Rewards for the Early Supporters''' who believed in the project by supporting it at its riskiest stage. These [[Gov/en/Portal:Economy/Rewards|Rewards]] are tied to the deliverables of the first funding round: see [[Gov/en/Portal:Meta/Prototype-1-Deliverables|Prototype 1 Deliverables]]. | # '''Rewards for the Early Supporters''' who believed in the project by supporting it at its riskiest stage. These [[Gov/en/Portal:Economy/Rewards|Rewards]] are tied to the deliverables of the first funding round: see [[Gov/en/Portal:Meta/Prototype-1-Deliverables|Prototype 1 Deliverables]]. | ||
# '''Operating costs:''' servers, the coordination team and the committee. | # '''Operating costs:''' servers, the coordination team and the committee. | ||
# '''Awards (prizes) for the [[Gov/en/Portal:R&D/Open- | # '''Awards (prizes) for the [[Gov/en/Portal:R&D/Open-Calls:Main|Open Calls]].''' A note on terminology: on WikiDeal, "rewards" designates the compensation of supporters under the funding model, while "awards" designates the prizes of the Open Calls. The two words are deliberately kept distinct. | ||
<span id="startup-transition"></span> | <span id="startup-transition"></span> | ||
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<span id="scalability"></span> | <span id="scalability"></span> | ||
== Scalability | == Scalability (illustrative, non-binding) == | ||
{| class="wikitable" style="width:100%; border-collapse:collapse; font-size:0.88rem;" | {| class="wikitable" style="width:100%; border-collapse:collapse; font-size:0.88rem;" | ||
|- style="background:#008080; color:#fff;" | |- style="background:#008080; color:#fff;" | ||
! style="text-align: center; padding: 8px;"| Users | ! style="text-align: center; padding: 8px;"| Users | ||
! style="text-align: center; padding: 8px;"| Annual Revenue (CHF) | ! style="text-align: center; padding: 8px;"| Annual Revenue (CHF) | ||
|- | |- | ||
| style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| 10,000 | | style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| 10,000 | ||
| style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| | | style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| 100,000 | ||
|- style="background:#f8f9fa;" | |- style="background:#f8f9fa;" | ||
| style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| 100,000 | | style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| 100,000 | ||
| style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| | | style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| 1,000,000 | ||
|- | |- | ||
| style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| 1,000,000 | | style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| 1,000,000 | ||
| style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| | | style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| 10,000,000 | ||
|- style="background:#f8f9fa;" | |- style="background:#f8f9fa;" | ||
| style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| | | style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| 10,000,000 | ||
| style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| 100,000,000 | |||
| style="text-align: center; padding: 6px; border: 1px solid #b2dfdf;"| | |||
|} | |} | ||
These figures use the average working assumption of CHF 10 per user per year. They are an illustration of how revenue would scale with adoption, not a promise and not a commitment. | |||
<span id="revenue-and-supporters"></span> | <span id="revenue-and-supporters"></span> | ||
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As an initial hypothesis, the term "subscription" was preferred over "membership", while recognizing that what is proposed is, in reality, a subscription for a membership: subscribers would also be members, with voting rights. As this naming choice sits at the heart of the system, it is explained in detail at [[Gov/en/Portal:R&D/Innovations:Subscription-or-Membership|Subscription or Membership]]. | As an initial hypothesis, the term "subscription" was preferred over "membership", while recognizing that what is proposed is, in reality, a subscription for a membership: subscribers would also be members, with voting rights. As this naming choice sits at the heart of the system, it is explained in detail at [[Gov/en/Portal:R&D/Innovations:Subscription-or-Membership|Subscription or Membership]]. | ||
<span id="see-also"></span> | |||
== See also == | == See also == | ||
<span id="state-of-the-art"></span> | |||
== State of the art == | |||
Solidarity-priced membership relates to research on participative pricing, the psychology of payment and the economics of free and low-cost offers. The studies below inform the CHF 1/month hypothesis. | |||
* Ayelet Gneezy, Uri Gneezy, Leif D. Nelson and Amber Brown (2010), ''Shared Social Responsibility: A Field Experiment in Pay-What-You-Want Pricing and Charitable Giving'', Science, 329(5989): [https://doi.org/10.1126/science.1186744 doi:10.1126/science.1186744]. | |||
* Ju-Young Kim, Martin Natter and Martin Spann (2009), ''Pay What You Want: A New Participative Pricing Mechanism'', Journal of Marketing, 73(1): [https://doi.org/10.1509/jmkg.73.1.44 doi:10.1509/jmkg.73.1.44] · [https://en.wikipedia.org/wiki/Pay_what_you_want pay what you want on Wikipedia]. | |||
* Drazen Prelec and George Loewenstein (1998), ''The Red and the Black: Mental Accounting of Savings and Debt'', Marketing Science, 17(1): [https://doi.org/10.1287/mksc.17.1.4 doi:10.1287/mksc.17.1.4]. | |||
* Chris Anderson (2009), ''Free: The Future of a Radical Price'', Hyperion: [https://en.wikipedia.org/wiki/Free:_The_Future_of_a_Radical_Price book page on Wikipedia] · [https://en.wikipedia.org/wiki/Freemium freemium on Wikipedia]. | |||
* On recurring-revenue models in general: [https://en.wikipedia.org/wiki/Subscription_business_model subscription business model on Wikipedia]. | |||
'''See also:''' [[Gov/en/Portal:R&D/Innovations:Subscription-or-Membership|Subscription or Membership]] · [[Gov/en/Portal:Economy/Rewards|Rewards]] · [[Gov/en/Portal:Economy/Main|Why Fund WikiDeal]] · Fund WikiDeal · Funding Contract · [[Gov/en/Portal:R&D/Innovations:Need-Driven Funding|Need-Driven Funding]] | '''See also:''' [[Gov/en/Portal:R&D/Innovations:Subscription-or-Membership|Subscription or Membership]] · [[Gov/en/Portal:Economy/Rewards|Rewards]] · [[Gov/en/Portal:Economy/Main|Why Fund WikiDeal]] · Fund WikiDeal · Funding Contract · [[Gov/en/Portal:R&D/Innovations:Need-Driven Funding|Need-Driven Funding]] | ||
💡 '''Improve this concept:''' submit a proposal via [[Gov/en/Portal:R&D/Open- | 💡 '''Improve this concept:''' submit a proposal via [[Gov/en/Portal:R&D/Open-Calls:Main|Open Call]] | ||
[[Category: | [[Category:Innovation]] | ||
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