Joshua Gans thinks that the problem with online ‘tip jars’ is not that people don’t want to make tips, but that the relative cost of giving a tip, in terms of time and effort, is too high compared to not giving a tip. He suggests making not tipping more costly by requiring people to enter their payment details whether or not they tip will result in more tipping overall. It does sound like a sensible strategy if your objective is to raise money from tips. If you just want to be popular, or get your revenue from advertising, then making not tipping more costly will just reduce overall demand for your content, which you probably don’t want to do.

However, if people are really willing to give tips when it isn’t too annoying to do so, why hasn’t a norm emerged of regularly clicking one of the ads on a blog, for example, to show appreciation for the content? Websites get paid per click, so clicking is effectively the same thing as giving a tip, with the bonus that it doesn’t cost the clicker anything except a little time; certainly no more time than it would take to fill in the payment details for a tip. Has such a norm emerged and I’m just out of the loop? Or are people really not that generous?

On a related note, I did some searching about online tip jars, and I came across tipjar.com. Check it out, it’s truly bizarre! Is it a joke?

by aaron. Permalink. Comments RSS.