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Old 02-01-2010, 12:32 PM   #1
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GFY Educational Series: Beyond Memberships In The Adult Spaceľ Selling Tangible Goods

Beyond Memberships In The Adult Space ľ Selling Tangible Goods

Written by: Mitch Farber - President, NETbilling, Inc.

Diversification

Many webmasters make a lucrative living selling memberships, driving traffic to their own pay sites as well as affiliate sites. As the adult internet has matured, pay site operators are continuously looking to increase their bottom line using up-sells, cross sells, member retention and other methods.

Being involved closely in adult and mainstream processing for over 11 years and processing for thousands of online merchants selling tangible goods and membership based sales, NETbilling has seen a large increase in products sales crossover to compliment membership sites, especially over the past few years. Whether selling DVDs containing the content they have viewed online, sex toys for penis enlargement or for their girlfriends and wives, along with herbal pills to make it grow another twelve inches, selling tangible goods is big, big business (pardon the pun).

Shanes World Studios relies on both tangible and non tangibles to generate income. Their Vice President Of Internet Operations has this to say about the topic; ôSince Shane's World started in tangible goods and then migrated into Internet at a later period in their landmark run in the adult industry, I can attest to the value and potential equity that tangible goods merit to a profitable business model. What I personally like about tangibles is that you experience a much lower return rate and credit back than you experience with online based subscriptions. Tangible goods are a breath of fresh air away from the "high risk" category that we are all grouped into. By selling tangible goods you also reduce your chargeback percentage by increasing the number of low risk transactions on your account, so from a business model mindset it actually makes sense to venture into that market for this reason alone. I would encourage any adult venture with a stake in the future of adult to develop a tangible goods line of revenue. It's a market that not all pay sites can pursue on their own, but having your own merchant and running your own empire is always the way to do it in my book.ö

Low Risk

Unlike overall membership sales, chargebacks for tangible goods are extremely low. There are several reasons for this. Ordering tangible goods of any kind is less of an impulse buy than joining a porn site. Because these products are shipped to a physical address, fraud is much less likely, especially if a signature is required upon delivery. When attempted disputed of transactions do occur, documentation of the purchase is easily produced through the payment gateway and/or shopping cart system as well as signature receipts from the delivery carrier.

Obtaining a merchant account to sell tangible goods is extremely easy. Companies such as NETbilling work with several banks who welcome tangible goods merchants, both mainstream and adult. Merchant account approval for these types of accounts typically happen the same day as the application is submitted to the bank, at rates far less than membership site processing rates (typically less than 3%). Credit cards and online checks (ACH) are the most popular methods of payments for tangibles, as with membership sites. However, since you can hold the goods to be shipped until check payments actually clear, you are protected from people stealing your content as they do when signing up for a membership site and having access while you are waiting for the check to ôclearö.

Shopping Carts

The standard delivery method to present purchasable products to customers on your web site is by using a ôshopping cartö. There are many free open source shopping cart systems on the market such as OScommerce with processor plug-ins to easily utilize your preferred payment processor such as NETbilling and other popular payment gateways. NETblling also provides a free shopping cart that is fully integrated and hosted by us, as a courtesy to our merchants.

As an alternative, other companies offer shopping cart systems with enhanced capabilities, affiliate tracking and content management such as Mansion Productions, MIVA, and X-Cart to name a few and more are compatible with NETbilling as well.


__________________________________________________ ________________________

Since 1998, NETbilling has provided processing and call center services to merchants worldwide in both adult and mainstream e-commerce industries.

Mitch Farber is the President of NETbilling and can be reached via email at: [email protected], by phone at: 888-357-8166 or on the web at: NETbilling.com.
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Old 02-01-2010, 12:36 PM   #2
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good post about tangible goods, we have tried ccbills solution for tangible goods and its been working great for us.

didnt know netbilling did it as well
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Old 02-01-2010, 01:12 PM   #3
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What a great kick off to our new GFY Educational Series! Thanks Mitch for putting together such an informative article and sharing it with everyone.

I look forward to the questions and responses to follow!
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Old 02-01-2010, 01:13 PM   #4
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Good read Mitch
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Old 02-01-2010, 01:35 PM   #5
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Thanks Mitch! Great article!
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Old 02-01-2010, 01:38 PM   #6
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I fucks with this...
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Old 02-01-2010, 03:13 PM   #8
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good post about tangible goods, we have tried ccbills solution for tangible goods and its been working great for us.

didnt know netbilling did it as well
Hi,

We have ben doing it for 11 years. Let me know if you are interested. You will pay about 5% or less total. Not sure what you pay now.

Thanks, Mitch
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Email / Phone: 888-357-8166 / 661-252-2456
Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!
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Old 02-01-2010, 08:44 PM   #9
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What a great kick off to our new GFY Educational Series! Thanks Mitch for putting together such an informative article and sharing it with everyone.

I look forward to the questions and responses to follow!
Thanks for the offer and the praise Jill. It is short but sweet and I am happy to answer any questions and more articles to come.
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Email / Phone: 888-357-8166 / 661-252-2456
Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!
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Old 02-02-2010, 12:42 AM   #10
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Nice article, we are already preparing a couple projects with tangible goods and we are planning on using Netbilling for the billing part
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Old 02-04-2010, 07:44 AM   #11
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ty or the info, well done
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Old 02-04-2010, 07:53 AM   #12
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Interesting. Thank You
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Old 02-04-2010, 08:06 AM   #13
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good read, should this not be moved?
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Old 02-04-2010, 09:37 AM   #14
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Nice read champ.
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Old 02-04-2010, 10:02 AM   #15
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decent read, thanks.
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Old 02-04-2010, 10:17 AM   #16
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Great read, thanks Mitch.
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Old 02-04-2010, 10:46 AM   #17
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great read
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Old 02-04-2010, 10:59 AM   #18
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Great info, going to use some of this right now.
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Old 02-05-2010, 04:44 PM   #19
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good read, should this not be moved?
After a week.
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Old 02-05-2010, 05:08 PM   #20
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Mitch - Have any interest in another voice? I primarily work in the mainstream area and have had HUUUUGE successes like taking companies from 0 sales to over $1,000,000 through the internet.

I'd like to contribute somehow - let me know.
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Old 02-05-2010, 09:53 PM   #21
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Thanks for the info.
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Old 02-05-2010, 11:14 PM   #22
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Mitch - Have any interest in another voice? I primarily work in the mainstream area and have had HUUUUGE successes like taking companies from 0 sales to over $1,000,000 through the internet.

I'd like to contribute somehow - let me know.
would like to chat, do you have an email addy i can reach u at
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Old 02-05-2010, 11:29 PM   #23
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Good stuff.
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Old 02-06-2010, 02:10 AM   #24
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The only down side is you have to run to the post office with every order so it has to more than 3 clients a week to make it work I suppose.
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Old 02-06-2010, 01:05 PM   #25
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Would you say on average a person buying a tangible good is willing to spend more on an item than the on an average paysite membership?

Are people who buy tangible goods from your store more likely to come back to you for more? So you make more in the long run than on the average paysite membership.

Anybody got information on cross promotions for a diffrent (non tangible) product? Like adding flyers to promote websites (use this code for a 25% discount type of stuff)
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Old 02-06-2010, 01:52 PM   #26
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Would you say on average a person buying a tangible good is willing to spend more on an item than the on an average paysite membership?

Are people who buy tangible goods from your store more likely to come back to you for more? So you make more in the long run than on the average paysite membership.

Anybody got information on cross promotions for a diffrent (non tangible) product? Like adding flyers to promote websites (use this code for a 25% discount type of stuff)
Some good questions ^, great article Mitch.
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Old 02-06-2010, 03:53 PM   #27
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I just don't know how to deal with the fact that GFY is actually starting to provide adult industry tutorials.....
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Old 02-06-2010, 04:08 PM   #28
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Hi. Can you provide a link to a demo site of the shopping cart you offer?
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Old 02-06-2010, 06:53 PM   #29
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Old 02-06-2010, 07:20 PM   #30
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I have been selling tangible goods the entire time I have been in this business and it is a good earner. DVD's still sell.
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Old 02-06-2010, 08:22 PM   #31
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Quote:
Originally Posted by NetBilling View Post
Beyond Memberships In The Adult Space ľ Selling Tangible Goods

Written by: Mitch Farber - President, NETbilling, Inc.

Diversification

Many webmasters make a lucrative living selling memberships, driving traffic to their own pay sites as well as affiliate sites. As the adult internet has matured, pay site operators are continuously looking to increase their bottom line using up-sells, cross sells, member retention and other methods.

Being involved closely in adult and mainstream processing for over 11 years and processing for thousands of online merchants selling tangible goods and membership based sales, NETbilling has seen a large increase in products sales crossover to compliment membership sites, especially over the past few years. Whether selling DVDs containing the content they have viewed online, sex toys for penis enlargement or for their girlfriends and wives, along with herbal pills to make it grow another twelve inches, selling tangible goods is big, big business (pardon the pun).

Shanes World Studios relies on both tangible and non tangibles to generate income. Their Vice President Of Internet Operations has this to say about the topic; ôSince Shane's World started in tangible goods and then migrated into Internet at a later period in their landmark run in the adult industry, I can attest to the value and potential equity that tangible goods merit to a profitable business model. What I personally like about tangibles is that you experience a much lower return rate and credit back than you experience with online based subscriptions. Tangible goods are a breath of fresh air away from the "high risk" category that we are all grouped into. By selling tangible goods you also reduce your chargeback percentage by increasing the number of low risk transactions on your account, so from a business model mindset it actually makes sense to venture into that market for this reason alone. I would encourage any adult venture with a stake in the future of adult to develop a tangible goods line of revenue. It's a market that not all pay sites can pursue on their own, but having your own merchant and running your own empire is always the way to do it in my book.ö

Low Risk

Unlike overall membership sales, chargebacks for tangible goods are extremely low. There are several reasons for this. Ordering tangible goods of any kind is less of an impulse buy than joining a porn site. Because these products are shipped to a physical address, fraud is much less likely, especially if a signature is required upon delivery. When attempted disputed of transactions do occur, documentation of the purchase is easily produced through the payment gateway and/or shopping cart system as well as signature receipts from the delivery carrier.

Obtaining a merchant account to sell tangible goods is extremely easy. Companies such as NETbilling work with several banks who welcome tangible goods merchants, both mainstream and adult. Merchant account approval for these types of accounts typically happen the same day as the application is submitted to the bank, at rates far less than membership site processing rates (typically less than 3%). Credit cards and online checks (ACH) are the most popular methods of payments for tangibles, as with membership sites. However, since you can hold the goods to be shipped until check payments actually clear, you are protected from people stealing your content as they do when signing up for a membership site and having access while you are waiting for the check to ôclearö.

Shopping Carts

The standard delivery method to present purchasable products to customers on your web site is by using a ôshopping cartö. There are many free open source shopping cart systems on the market such as OScommerce with processor plug-ins to easily utilize your preferred payment processor such as NETbilling and other popular payment gateways. NETblling also provides a free shopping cart that is fully integrated and hosted by us, as a courtesy to our merchants.

As an alternative, other companies offer shopping cart systems with enhanced capabilities, affiliate tracking and content management such as Mansion Productions, MIVA, and X-Cart to name a few and more are compatible with NETbilling as well.


__________________________________________________ ________________________

Since 1998, NETbilling has provided processing and call center services to merchants worldwide in both adult and mainstream e-commerce industries.

Mitch Farber is the President of NETbilling and can be reached via email at: [email protected], by phone at: 888-357-8166 or on the web at: NETbilling.com.
Mitch, look for a call from me this week.
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Old 02-07-2010, 04:43 AM   #32
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Very good primer, but will there be part 2 "How to Sell....."

Tangibles are a different animal, there is no instant gratification like the virtual sale so there is that question as to how to get a potential buyer interested enough to spend money and WAIT for that item to arrive...
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Old 02-07-2010, 07:33 AM   #33
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Good read...
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Old 02-07-2010, 08:26 AM   #34
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Nice read, thanks
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Old 02-07-2010, 05:16 PM   #36
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Well keeping many eggs in many baskets is always a safe bet.. especially in this recession.
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Old 02-07-2010, 08:27 PM   #37
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IMO, the write up sounds like an informercial. It's good for newbies, but that's about it. Don't hate me for my opinion.
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Old 02-08-2010, 12:16 AM   #38
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Mitch, look for a call from me this week.
ok - cal me anytime. I am sure I will see you at xbiz
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Mitch Farber
CEO - NETbilling, Inc.
Email / Phone: 888-357-8166 / 661-252-2456
Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!
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Old 02-08-2010, 12:18 AM   #39
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Hi. Can you provide a link to a demo site of the shopping cart you offer?
Hi,

Yes. Please call our sales department and they will hook you up.The shopping cart is quite simple intentionally. Our admin and all of our tools and APIs are quite impressive.

888-357-8166 / 661-252-2456
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2017 GFY, Ynot, Xbiz - Best Merchant Services Processor!

Mitch Farber
CEO - NETbilling, Inc.
Email / Phone: 888-357-8166 / 661-252-2456
Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!
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Old 02-08-2010, 12:20 AM   #40
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Mitch - Have any interest in another voice? I primarily work in the mainstream area and have had HUUUUGE successes like taking companies from 0 sales to over $1,000,000 through the internet.

I'd like to contribute somehow - let me know.
Hi,

You are welcome to post here and I am sure if you hit up Jill at Playboy, she will be looking for articles as well.
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2017 GFY, Ynot, Xbiz - Best Merchant Services Processor!

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CEO - NETbilling, Inc.
Email / Phone: 888-357-8166 / 661-252-2456
Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!
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Old 02-08-2010, 12:21 AM   #41
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Nice article, we are already preparing a couple projects with tangible goods and we are planning on using Netbilling for the billing part
Awesome - we will take good care of you.

Thank you
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CEO - NETbilling, Inc.
Email / Phone: 888-357-8166 / 661-252-2456
Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!
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Old 02-08-2010, 12:39 AM   #42
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IMO, the write up sounds like an informercial. It's good for newbies, but that's about it. Don't hate me for my opinion.
Correct me if I am wrong, but I thought the intent of the article was a starting point, so if anyone had questions [as you obviously do] they can ask them. There is even a special forum for it so you can ask more follow up questions.
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Old 02-08-2010, 01:00 AM   #43
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Correct me if I am wrong, but I thought the intent of the article was a starting point, so if anyone had questions [as you obviously do] they can ask them. There is even a special forum for it so you can ask more follow up questions.

I didn't know I had questions. What are they?

I gave my opinion, and in my opinion, it was an infomercial. An ad. A plug.
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Old 02-08-2010, 11:37 PM   #44
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Would you say on average a person buying a tangible good is willing to spend more on an item than the on an average paysite membership?

Are people who buy tangible goods from your store more likely to come back to you for more? So you make more in the long run than on the average paysite membership.

Anybody got information on cross promotions for a diffrent (non tangible) product? Like adding flyers to promote websites (use this code for a 25% discount type of stuff)
So it wasn't more than an informercial indeed huh.

Good to know...
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Old 02-09-2010, 01:20 AM   #45
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informative article

are there more coming? how can I post in this section? I'm assuming it's heavily moderated. where are the rules?
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Old 02-09-2010, 11:42 AM   #46
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Correct me if I am wrong, but I thought the intent of the article was a starting point, so if anyone had questions [as you obviously do] they can ask them. There is even a special forum for it so you can ask more follow up questions.
You are absolutely correct and thanks for that.
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Old 02-09-2010, 03:44 PM   #47
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So it wasn't more than an informercial indeed huh.

Good to know...
Q&A doesn't work without the A to go with the Q!
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Old 02-10-2010, 04:32 AM   #49
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Thanks for good article!
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Old 02-10-2010, 08:37 AM   #50
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