Quote:
Originally Posted by RawAlex
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.
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No, it's not a winner. Of course you've explained the reason why they would do it (and well), but it's not like that isn't obvious already.
The point about the whole thing is that it reveals so much about how Mayors Money treats their webmasters. Not only is it poor business practice, but it is absolutely laughable that they think it's acceptable to charge the webmasters for their own business expenses.
It is evidence of a sinking ship, poor business fundamentals, and if I was pushing them I would be immediately looking elsewhere.
In a 9-5 job would you accept if your boss deducted $5 from your wage every month for 'wage payment expenses'?
This is utterly unforgivable.