Strategic significance

FairPay is a pricing discovery and management process that provides
•  More effective pricing -- based on value
•  The ultimate in market research:
         transaction-level value perception and behavior detail
              for every transaction by every buyer
•  Fine-grained buyer self-segmentation
to create a new framework for win-win value exchange.

FairPay tracking processes build a Fairness Reputation Database on customers (much like a credit rating database) that becomes a valuable asset. When applied in a cross-vendor platform service, this database offers an added first-mover advantage.

FairPay works through a very simple balancing dynamic:

1. Selectively offer to let the buyer set any price the buyer considers fair -- after the sale (Fair Pay What You Want, post-sale).

2. Track that price and determine whether the seller agrees that is fair, and use that information to let the seller decide whether to make further offers of that kind to that buyer in the future.  (Unfair buyers are downgraded to lesser offers or fixed-price.)

This gives buyers a strong incentive to price fairly -- and enables sellers to limit their future exposure to those who do not.

...more on How FairPay works

Customers  -- Pay only what seems fair to you:

• Pay what you want for products or services -- after you try them

• Make every purchase on a trial basis--so you can always be sure to get fair value for your money

• Agree to set your price fairly--in your judgment--and explain why you think it is fair

• Do that as long as you can convince the seller that you are being fair

Businesses  -- Get the most revenue from the most customers by continuously learning what each one values:

• Engage in real dialog with each of your customers on the value they get from your products or services

• Make a trial offer to every potential customer who sees potential value and is fair-minded

• Let your customers self-select into segments (based on usage, value perception, willingness and ability to pay, ...)

• Limit your risk from those trial offers by tracking the results for each buyer, and limiting future offers if you judge that buyer to not pay fairly

• Continue to make every offer a trial...
  ...as long as each buyer continues paying fairly--in your judgment

Radical, but practical and prudent

FairPay is radical in offering a high degree of participation of buyers in price setting, but balances that with mechanisms for sellers to manage risk and predictability.  FairPay is also prudent in being designed to work in harmony with conventional pricing schemes (pay walls, freemium, etc.), as a complement, and generally not a complete replacement.