Online tipping
Dear PropellerHeads: I am developing a website for my baseball league. I am not getting paid, but tips would be nice. How can I make it easy for my visitors to leave donations for my hard work?
A: What happened to the volunteer spirit?
No worries, donations and tips are perfectly cool. The key is to let folks decide for themselves, make it easy for them, and of course, thank them for thinking of you. Just don't spend it all in one place.
For online tips, you could always set up a third-party payment system to take credit card payments. But that requires a multi-step process that may turn off many would-be contributors. Folks may not be that keen leaving their credit card information all over the Internet.
Small, single-step (one-click) payments via the Web are sometimes called micro-payment systems. The Apple iStore is an example of one in action. Some newspapers are introducing micro-payments for their content. They are also well-suited for contributions and tips.
This is becoming a hot topic. The industry is scrambling to find a safe, convenient method to accept small payments. These services make their money by taking a small cut. Lots of small cuts can equal big money, so the stakes are high.
The issue is that typical payment systems are too expensive and cumbersome for a small transaction. Micro-payment systems typically work by combining transactions using a balance account to help manage this. This is a bit tricky. It sure looks like there is a need, but apparently it's difficult to make it work, to make it easy to adopt and to make money doing it.
Amazon.com used to have a micro-payment service, called Amazon Honor System. It was used for small payments, tips and contributions, but it was discontinued in 2008. PayPal (paypal.com) has since entered this arena with their micro-payment system.
One new service you should check out is Flattr.com. Flattr is a third-party tip box. By placing a small button (or "badge") on your website, you can let folks know that a tip would be appreciated and make it easy for them to be generous and supportive.
Would-be tippers sign up for Flattr, giving their credit card or PayPal information. The generous patrons click on the Flattr button you placed on your site anytime they want to leave something a little extra for you. Papa's gettin' a new pair of shoes.
When folks click your button, a tip is placed in your virtual cookie jar (your revenue account).
Conversely, you can support other Flattr users with your loose change (called a means account) by clicking on other people's badges whenever you find an online article or blog post helpful. Flattr will take all of your clicks for the month and split them between those you have "Flattred" using a monthly budget you set.
You can place Flattr buttons on multiple places (e.g., blogs, Web pages, software downloads, how-to docs). You can also place Flattr buttons in the real world using QR codes that can be scanned (think "pressed") with your mobile phone. The Flattr website helps promote their users' works (which they call "things"). Flattr produces a monthly report showing donations received or tips you have left.
Periodically, you can use Paypal and similar services to move money in and out of Flattr. This European-based service uses Euros as their base currency, but it's easy enough for us in the colonies to deal with.
Similar services include Online-TipJar.com and ScratchBack.com. There are differences between all of these services, so you should see which one works best for you.
So, if you are not into the "better to give than receive" thing, think about adding a micro-payment system to your site. Then sit back and collect the nickels so you can finally afford that kidney for mom.
When the PropellerHeads at Data Directions aren't busy with their IT projects, they love to answer questions on business or consumer technology. Email them to questions@askthepropellerheads.com or contact us at Data Directions Inc., 8510 Bell Creek Road, Mechanicsville, VA 23116. Visit our website at www.askthepropellerheads.com.