I am not a big fan of micropayments. So when I saw this article, Micropayments and Subscriptions: How Business Models for Startups are Shifting at ReadWriteStart, I thought: maybe someone has figured it out.
Instead, what I see is a reference to a site called ZooLoo and this:
In January, ZooLoo fundamentally changed their business model by creating a storefront through which customers could pick and choose features on a micropayment level. Now if a user wants to purchase their own domain name, but doesn’t want to pay for ZooLoo’s SEO services, they can do that instead of being forced into picking from a tiered package.
(I added the bold text).
I went over to the ZooLoo site, and unless I am missing something, what they seem to have done is offer month subscription servers from $1.99 a month on. According to wikipedia, that is technically a micropayment, but really, if that all it is, then what’s the big deal about that. Given that’s a micropayment, then the local dollar store is a micropayment cornucopia! Either that, or the concept of a micropayment is a tired one that should take a rest.
It does sound cool, though. I think that’s why techies like it.
Smart People I Know 
You’re right on with how we’re using micropayments and subscriptions – what I don’t understand is why you’re calling this a misuse?
As you referenced, our system is a micropayment, and as RWW said, we’re already starting to see results from this model.
If you noticed, what’s key to our micropayment model is that we only charge for services people understand have some cost associated with them – domains, SEO, advanced privacy controls for your web site, the removal of ads, etc.
We don’t charge for this people can get for free else where and instead offer those services as a part of our “freemium” package – like our Graffiti Blog, Social Integration and dashboards.
There’s nothing wrong with subscription services or your service at all. It sounds like it is a good fit for you and your client. The only reason your company came up was in the context of the article.
What I object to is the idea of micropayments generally and the overuse of micropayments as a concept in particular. I don’t appreciate the micro- part of micropayments, unless they are unusually small. Otherwise, to me, it simply a fee. If I pay a subscritpion fee to a magazine, I don’t call it a micropayment. Long distance charges on my phone bill are just that: charges.
Maybe micropayments sound better to people, just like some people prefer the terms levee or usage fee instead of tax. I just think the term and the concept is overhyped and poorly understood.