The Struggle to Monetize Free Content
There’s a debate at the Yahoo Videoblogging Group today asking people to think outside the box to envision new ways of making videoblogs pay. One person claimed that setting up a donations system doesn’t work, but I believe that it does work for some.
When I started Kitkast I expected nothing in return and I still expect nothing. However, it’s difficult to have a full time job during the day and a full time job making a videoblog at night. In fact, last night I went to bed around 3:30am and at 4am Zod and I were woken up with a fire alarm blaring in our ears. After lying in bed for 2 minutes contemplating whether this is for real or not, Zod got up and got ready to go outside and bear the cold and I started getting dressed too. Let me tell you, the last thing you want to do with 30 minutes sleep is get out of bed and go outside into a Montreal winter. Zod later decided to go out and see whether there is a fire or not. Half an hour later he returned to the apartment saying that it was a false alarm.
Tonight I will be up very late. Not only will I be editing until the wee hours of tomorrow morning, but I will also be doing an erotic dance demonstration and interview for CTV. The interview should take about an hour and I’m doing it because I just can’t refuse the media… I may badmouth the mainstream, but the truth is that I envy them for their ready-made audience and a system that has stood the test of time for many decades. A system which is now threatened by us, the videobloggers.
Many vloggers are worried about the mainstream. Partly because mainstream media is catching onto their niche. Once videoblogging and online media is saturated with the mainstream, the world we know will have changed. The question again is: how will we monetize it?
In the past month, I have tried to make a few efforts to monetize Kitkast. The model I worked from was suggested to me by my geektastic boyfriend, who told me all about how a web comic started monetizing their site. It seems that they were once in my situation; working a full time job and making free content on the side. When some fans started moaning and groaning about them not putting out enough regular content, the web comic guys asked them to put their money where their mouths are and they set up a donation button. One day and many dollars later, the web comic guys said they would be willing to quit their jobs if their fans would promise to keep paying them. Since then, they have reportedly become a mini merchandising empire.
With this in mind, I set up my own donation button and made a 12-month wall calendar with photo editing done voluntarily by a professional photographer, one of my Kitkast viewers. I’m also in the process of designing t-shirts and other accessories to sell online. What I didn’t expect, however, was that my donation account would be shut down after receiving my first donation and accused of selling ’sexual services’.
If you’re a regular mskitka.com reader or a regular Kitkast viewer, you have obviously realized by now that there is never any nudity or actual porn on my sites/show. What I do have is news about the industry and about its censorship. Why, then, did the company I set the donation account up with shut down my account for this reason and send me the following e-mail? (Please note that I have replaced the company’s name with “[Company]” and have omitted the company’s URLs and e-mails by placing text explanations in square brackets).
Dear Client,
The [Company] User Agreement states that [Company], at its sole discretion, reserves the right to close an account for any violation of the User Agreement, including the Acceptable Use Policy. Under the Acceptable Use Policy, [Company] may not be used to send or receive payments or donations for obscene or sexually oriented goods or services. The complete Acceptable Use Policy addressing Mature Audiences can be found at the following URL:
[URL Omitted]
We are hereby notifying you that, after a recent review of your account activity, it has been determined that you are in violation of [Company]’s Acceptable Use Policy. Therefore, your account has been closed.
If you have a remaining balance, you may withdraw the funds to your bank account. Information on how to withdraw funds from your [Company] Account can be found at our Help Center.
You will need to remove all references to [Company] from your website(s) and/or auction(s). This includes not only removing [Company] as a payment option, but also the [Company] logo and/or shopping cart.
We thank you in advance for your cooperation. If you have any questions, please contact the [Company] Acceptable Use Policy Department at [E-mail address omitted].
Sincerely,
[Company] Acceptable Use Policy Department
So, as you can see, I’m not at liberty to blog using [Company]’s name in this post (i.e. “You will need to remove all references to [Company] from your website(s) and/or auction(s)“). This is why it has taken me so long to formulate this entry. As the e-mail message said, they are basically accusing me of sending or receiving “payments or donations for obscene or sexually oriented goods or services“. Well, they are sadly mistaken and I plan on appealing their decision to shut down my account… unfortunately, as I said before, I don’t have a lot of time outside of my full time job and making Kitkast to do so. Wish me luck ( < sarcasm > and buy a calendar… < /sarcasm > ).
January 6th, 2006 at 4:13 pm
“You will need to remove all references to [Company] from your website(s) and/or auction(s). This includes not only removing [Company] as a payment option, but also the [Company] logo and/or shopping cart.” — [Company]
Took me all of two seconds to confirm my first guess after reading that line. It is certainly the word ‘auction’ that gives it away. Then again you upheld your end of the bargain and removed any reference to their name.
I have to admit that its a bit legally convenient to use the phrasing they choose. “[S]exually oriented goods or services” is by interpretation accurate. You report on the sex industry and thus your “goods and/or services” are technically sexually oriented. Granted there is nothing more explicit or offensive than if the evening news were to cover similar stories but technically are you in violation of their terms and services.
It disappoints me that so many companies are held hostage by the “PG-13 Police” into being so scared to promote that _might_ be interpreted as remotely offensive. It is a shame that [Company] feels nervous about _you_ promoting them.
Although I agree that readership donations and merchandising can be a good source of income [especially the merchandising] I have always wondered why websites don’t offer more $$$ entry contests. A weekly/monthly/annual virtual raffle I think could be a way to encourage donations while showing appreciate to your readership. Offer [for say $1.00] the opportunity to win $20.00 worth of Kitka[st] stuff. Whether it be ‘free’ merchandise from the Kitkast store, a special Kitkast, or something else. This will encourage donations and offer the opportunity for readers to become more involved interactively with the site. [Which will increase user loyalty and probably future donations.]
Imagine [for example] having a $20.00 entry fee to sign up for a “day” with Kitka, where one lucky fan could meet you and Zod, do an interview of Kitka or whatever. If only 50 people enter that’s still $1,000.00. 250 entries lands you with $5000.00. I don’t know what your readership really is, though I imagine its much larger, so you can do the math and really figure out what kind of money you could be making.
Maybe its a terrible idea, but I think its a decent one. Then again I’m not business man and my website is so small money isn’t an issue.
January 6th, 2006 at 4:28 pm
I still don’t believe I am in violation of their terms and conditions. I am not selling anything and all the news I write about it stuff available on other news sites… I just happen to compile them all here in a sort of sex column.
I actually had a plan for the whole donation thing… I was going to say that the first three people who make donations over $20 will receive a complimentary signed KITKAlendar. Unfortunately, however, my donation account was shut down three days after it was put up.
In any event, I plan on discussing the matter with [Company] and if I can’t get my account back, I will create a donations account with someone else. It has been suggested by some that it is possible that an individual logged a complaint with [Company] and that this sparked their move to remove my privileges.
Whatever the reason, it’s quite upsetting because I’m trying to raise money to purchase a digital video camera to improve the show and reduce the amount of time it takes me to make it. (One can only use a digital camera for so long without flinging it against a wall.) The situation really bummed me out because I had some great plans and now I need a new one.
The new plan is developing… don’t you worry.
Kitka
January 7th, 2006 at 12:16 am
They’re notorious for doing that. Even designers who accept payment through [Company], whose clientele includes adult sites, get their accounts shut down. I’m sorry this happened to you- and I’m buying a calender for my office.
January 7th, 2006 at 10:25 am
I’m sorry [ComPany] got to you, Kitka — did they freeze your funds, as well? I had that happen a few moons ago. It’s bogus that there’s no way to redress the situation with them, as far as I know. They just don’t respond.
There’s a few alternatives out there for accepting micropayment donations online w/o having to setup a merchant account. StormPay, GreenZap, etc. though I have heard scam rumors about all of them. W/ [ComPany]’s stranglehold on the market, it’s hard to get anyone to trust.
One camgirl I knew of was able to sell access to her site by making a CafePress shop and selling magnets that netted her the equivalent to the cost of one month’s membership. With the calendars, maybe that’s an option?
Rooting for you & KitKast’s future!
January 7th, 2006 at 7:35 pm
Katie- Yeah, I remember when Cruising For Sex was having problems with [Company]. Thanks so much for your support… my boyfriend is also getting a calendar for his office!
Melissa- Thanks for your comment, fortunately they didn’t freeze my account completely. They did give me access to the one donation I had received and informed me that they would not allow any other transactions to go through. I’ll start looking into alternatives really soon, but at the moment I’m too busy trying to get back to ‘normal’ life. Thanks for the tips!
The story about the camgirl selling magnets is very interesting, but as I said above I’m going to try the whole merchandizing thing… I have some really clever slogans that I think people would actually like to wear. I have a long list of ideas in my mind that I plan on trying out… I just wish I didn’t have to work 9-5 or selling my soul to get them done!
Thanks for your support, Melissa, I’m rooting for you and Sexerati too!