Pay-the-Buyer Phone Service

Game changing phone service.

Paybuyer's phone service is the first system that lets businesses of all kinds pay buyers to call. The mechanics and economics of this service are explained in our White Paper.

This service can supplant toll-free on sales lines because, all other things being equal, buyers choose services that offer "tie-breaking" payments.

Take frequent flier miles. All other things being equal, people choose an airline that gives them miles. This tie-breaking behavior forced all the big airlines to rapidly copy American Airlines, which was the first to offer miles.

Miles have become one of the most successful business ideas not just of the last quarter-century but in the modern history of capitalism...the 14 trillion unredeemed miles that travelers hold are more valuable than all of the United States currency in circulation... David Leonhardt, New York Times, 4/20/2006

Rewards cards' share.

Take reward credit cards. Introduced in 1986 by Discover to compete with basic no-reward cards, they now account for over 75% of credit card spending. According to the New York Times, "Consumers with cash reward cards stop using other cards." A small payment breaks the tie.

Finally, take toll-free phone service. People receive around a 5-cents-a-minute subsidy when they call a toll-free number. Because buyers strongly prefer this small freebie to paying per minute, toll-free has largely replaced toll on national consumer sales lines. A small payment breaks the tie.

What will happen when sellers can pay imminent buyers a lot more than 5-cents-a-minute for calling? Won't pay-the-buyer replace toll-free on sales lines?

What will happen when sellers can pay .25% to 2% of a sale amount per call? With Paybuyer sellers will be able to offer EV payments that large.* An auto insurer, say, could pay $20.00 EV (a 1 in 10 chance to win $200) to a caller who's about to buy car insurance.

By enabling payments of this size to go to hot prospect callers, pay-the-buyer phone service should sooner or later supplant toll-free service on sales lines. Similarly, online "directories that pay callers" should supplant search engines that pay nothing.

* Not counting transaction costs, the formula for the maximum amount an advertiser can pay a new prospect for exposure to a sales message is:

max payment =
(probability that message leads to sale) x (lifetime value of customer)