Nexicon, turning fear into cash
The business concept of Nexicon is quite exceptional. Their monitoring service tracks down IP’s of illegal content distributors on bittorent and other peer-to-peer networks. I suppose that this service towards copyright owners like movie studies and record labels can be bought with a some form of subscription. Once identified Nexicon’s system will automatically send out a settlement agreement to the ISP who has to forward it to his own client. In such a letter Nexicon threats with legal action if this distributor doesn’t choose to settle within 10 days by paying 10 dollar per illegally shared item. Nexicon will take a commission on each transaction. Although 10 dollar is far less then normally asked in settlement agreements it can generate an reasonable profit for Nexicon if they are able to track down these p2p-users in large amounts.
‘Experiences’ as we use it in our business model framework are characterized by the emotional impact on a user. Contrary to other ‘experience’ sellers Nexicons tries to offer such a negative experience (fear) that will convince a user to pay a small amount of money. An example of the opposite would be a pay-what-you-want restaurant that tries to offer such a pleasant experience in order to receive a reasonable payment from each client. In the end this shows that you as company should take control over the experience of your customer, even when this is a negative one.
More revenue model examples and inspiration:
Nick, interesting concept. Nexicon illustrates that also in the Legal industry new (disruptive) models are introduced. An internet based business with low transaction costs in contrast to the expensive lawyer/lawsuit model. Do you know other e-legal initiatives?
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