from Hacker News

X plans to use payment, phone and ID verification to stop bots, $1/yr fee

by bamazizi on 10/18/23, 7:12 PM with 55 comments

  • by tolmasky on 10/18/23, 8:58 PM

    The monetization scheme for Twitter seemed so obvious to me — just charge to edit tweets. Something like $1 for a “5 edit bundle”. I would have easily probably ended up spending more than $8/mo with that. Beyond being just plain bad ideas, each of these new fees they’ve introduced leaves no ability for users to spend a lot of money. They're all one-time payments. And edits in particular would work great because:

    1. It’s not functionality people were already used to getting for free, so they wouldn't feel like something was being taken away.

    2. It's something people have been, quite vocally, asking for for a very long time, so you know that they, well, actually want it.

    3. It doesn't lend itself to complaints because typos feel like they're “your fault,” and so it feels more understandable to pay to "fix your mistake."

    4. And it can be billed as a pure convenience: "you can always just delete the post and repost it". Even though this misses the point that you lose your retweets, it just adds to point (3) that it feels like a hack they're allowing you to do to fix your mistake.

    5. It doesn't negatively affect any existing user dynamics. When you charge a subscription, it's natural to feel like you shouldn't see ads anymore. "What am I paying for if I still see ads?!" This feature is completely orthogonal to every other existing revenue stream.

    If they would have just done this at the beginning, I think people would have actually cheered it on, and it doesn't affect any existing user dynamics. No devaluing of blue checkmarks, no risking losing tons of users by making it a for-pay service, and again, there's no hard ceiling on how much revenue you can generate from a single user.

    And guess what... a year later, they can still also offer a subscription that gives you 20 edits a month, or 300 edits a year if you pay all year up front, or something like that. So you can still get your subscription payments. And critically, unlike previously, you know what you're paying for. The messaging is simple and you can spin it as a user-friendly move: "Oh wow, the new edits feature is so popular, we decided it made sense to give people a way to get edits cheaper. Our new subscription pricing saves you money!"

  • by happytiger on 10/18/23, 8:53 PM

    Ok this is the thing I’ve been telling people X would do from early on. The idea here is to provide enough information to turn the majority of active users from social media users to payment platform users, thereby changing the platform valuation incredibly and creating one of the most valuable companies in the world basically overnight. Note that the “bot verification” is merely a thinly veiled KYC check, which together with AML will set X up as a payment system provider and eventually the rollout of an MTL. Very smart business move if it works.

    They don’t need that many active users to transition successfully either, as long as it’s got scale.

    Just look at the monthly active users and consider what a verified payment user like square or PayPal is worth to company valuation and you’ll see why 43B was worth it. It was the largest available userbase to roll this business model out onto.

  • by O1111OOO on 10/18/23, 8:53 PM

    I think this will eventually be about the subscription model to help lessen the reliance on advertisers.

    Lots of companies are moving toward this. Microsoft (Office products, maybe even their OS), Google recently with Youtube, Meta's IG/Facebook subscription plan and certainly Apple has mastered this.

    I believe that the data analysis guys have determined that there is a large enough pool of people that are willing to pay for services.

    I'm (subjectively) seeing a trend where more companies are relying on a segment of the population to help keep them afloat, profitable and in some cases... dominant.

    Twitter may be experimenting (while curtailing bots) with getting people used to the idea of paying for their service. One dollar... sure! A year later, it's $2.99/yr or $1/month... Still not a bad deal for those who are already comfortable with $1/yr.

    Saving user's payment information also makes it easier to segue into other ventures (stores, merch, donations, etal) because the wallets are now open.

    Objectively... It's not a bad move overall for a company that has been struggling.

    I wanted to see if X/Twitter's Premium service was a success and if so... it might have helped spur this move. Unable to find any info on that. Some other useful stats below:

    https://www.businessofapps.com/data/twitter-statistics/

  • by AgentK20 on 10/18/23, 9:14 PM

    One thing that I feel is probably not being thoroughly considered is that, given that this will likely be a credit/debit card transaction, just how many fraudulent card charges will be rung through this system, and how this will likely result in Twitter/X being banned by Visa and the other payment processors.

    One of the many reasons that almost NO ONE accepts less than $2-3 on the internet for things is that if you receive a chargeback from the bank due to fraud, there is a $20-$100 FEE that is applied to your account (in addition to the transaction being reversed), and if you get too many of these (both by percentage of transaction count and dollar volume) you will be banned from the payment processor.

    With the proposed $1/yr fee, it would be trivial to pay a few hundred dollars on a shady website for stolen credit card numbers, ring up huge numbers of $1 charges, and induce tens of thousands of dollars of damage while harming X's relationship with their payment provider.

  • by ajhurliman on 10/18/23, 8:53 PM

    It worked for SomethingAwful.com there’s no reason to believe it won’t work for X
  • by userinanother on 10/18/23, 8:31 PM

    I’ll donate 10$ to nitter to run 10 bots for me to scrape.
  • by bananapub on 10/18/23, 9:17 PM

    why is anyone reporting this credulously like it's a serious attempt to solve a serious problem?

    bot activity is far far far far worse than it was before Elon bought Twitter and fired loads of people, and much of the spam and most of the abuse I see comes from people who already paid for Twitter Blue! whatever the reason for this dumb idea is, it isn't to actually reduce the amount of bot crap on the platform.

  • by sneak on 10/18/23, 8:54 PM

    Requiring ID verification for publishing is the best way to kill anything truly interesting on a publishing platform.
  • by cramjabsyn on 10/18/23, 8:50 PM

    Ah yes lets pay them to aggregate and mishandle our PII because bots.
  • by underseacables on 10/18/23, 9:26 PM

    Something interesting would be if past tweets were hidden for everyone but those who pay.
  • by jsnell on 10/18/23, 8:51 PM

  • by dexwiz on 10/18/23, 7:20 PM

    $1 hardly sounds enough to stop bots, just tax them.
  • by ChrisArchitect on 10/18/23, 10:34 PM

    [dupe]

    Lots of discussion over here:

    https://news.ycombinator.com/item?id=37922973

  • by 1970-01-01 on 10/19/23, 7:21 PM

    What caused the flagging here?
  • by ge96 on 10/18/23, 8:50 PM

    Sarah McLachlan sings

    For just $1 per year...

  • by yodsanklai on 10/18/23, 8:48 PM

    I'm curious to see how this pans out! I'll be very amused to see all the Musk haters gracefully proceed to payment because they're addicted to this utterly toxic social network.