The secret is that you mail the notebooks back to them and they digitize the contents for you.
I avoid writing stuff in my notebook that I know I need to find in the future. I put into in an email and search it via Google search. Drawings and sketches are different categories. I would scan then and attached it to an email. The message of the email would provide context.
I think what Mod is providing is only half of the solution. At the moment, it is the same as "only to forget them forever when I leave it in a dusty box somewhere", only digitally. For me at least.
I personally don't really have a use for the service. A document scanner allows me to use whatever paper I want and scan whatever I want.
It is an interesting idea though if there is a market for this type of service.
I was trying to think of a way to embed a scanner into the front cover of a notebook (with replaceable pages) but it just didn't seem practical, a flatbed or feed scanner works about as good as you're going to get.
Plus, these days you can just take a picture with your phone and be done with it. I do that for whiteboards for content I want to save before erasing them.
PS: Please make your images smaller - I only saw the first 50% of your images by the time I was done reading
One word: Convenience.
It is easy to believe that people will pay for it, just look at the history of the last one hundred or more years. Convenience has trumped almost all other considerations (including enjoyment in a lot of cases).
So the only question that needs to be asked is: is this more convenient than the alternatives (e.g. tablets) or is the lower convenience worth the lower cost relatively speaking? I don't know, but that is the question to be asking.
On top of that, Mod uploads it to a nice app which I'd actually used (as opposed to just images on my computer, which I probably wouldn't). I could see them eventually adding OCR and making everything searchable, and cool features like that.
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Blocking out the web-site and not allowing me to do anything on it (until presumably I give them an email address). In order to view the site at all I had to set display: none from the development bar on div class="modal-background--light js-exitintent-modal-background is-top is-shown" which isn't the best user experience ever.
Not sure why you'd do that? Fortunately it doesn't appear when I visit the site on mobile (or emulated mobile) just PC.
Even hitting the "join" button just opens a new tab without closing it.
Also as the binds have to be cut off to scan, third party books with things like metal ring and plastic binds might be a pain to disassemble.