|
As more and more programs feel the pinch of shorter rebills, higher content production costs, and significantly poorer conversions, they will look in every corner for ways to make money or save costs on the bottom line. The easiest way to do this is to pass expenses on to the affiliates.
Realitically, a check in the mail costs about $1.00 (postage, envelope, check costs) upwards to $2.00 if you include the manpower required to get the checks in the envelope, etc. If your staff is really expensive or if you are trying to sink other costs into the check operations, it can cost you more.
It is all about turning a cost center into a revenue neutral or even a minor profit center. Instead of losing maybe $1000 a week mailing checks (assume 500 checks at $2 each) you could instead turn a $1500 profit ($2500 in fees less the $1000 costs). On a weekly program, this could push an extra 80k a year to the bottom line.
|