What is the Cutcaster Pricing Algorithm?
Cutcaster’s proprietary pricing algorithm maximizes your content’s revenue by changing its price to match the demand in the marketplace. The more your image is in demand, the more you should be paid for it. The algorithm is based on metadata and search variables surrounding your content and also how your files stack up against similar content in the Cutcaster marketplace so we can understand better what the buyers are willing to pay.
How does it add value?
Just like how the price of a companies stock price on an exchange is set through the interaction of buyers and sellers, we wanted to create a similar change in pricing for a piece of digital content. If you set the price too high and nobody buys or views your content, well, the price will come down. If there is a high level of demand for your content, you as the seller should be able to charge a higher price for it, so the price will move up. What the algorithm accomplishes for you is automation of this process across your entire inventory of content, so with very little effort you can feel confident that your work is being sold at the right price. If the price is set to high, well that is where the buyer can bid on content and show you what price they are willing to pay. At Cutcaster, we want our content contributors to spend their energy being creative.
How does it work?
It’s actually pretty simple. You have the option to set your own start price and let the algorithm work its magic from that price or you can use the algorithm default starting price which will look at the image, the keywords, the description, similar content in our marketplace and other pertinent information to get a fair start price. From there, the file is released into the Cutcaster marketplace where the price will fluctuate depending on the demand for that type of content. The formula is flexible and will/can be modified. Feel free to let us know if you think there’s room for improvement or other variables we should consider when evaluating your prices.