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Old 04-19-2009, 11:28 PM  
commonsense
So Fucking Banned
 
Join Date: Feb 2007
Posts: 1,790
Quote:
Originally Posted by SwirlsGirl View Post
Nothing personal, I respect you guys starting a company and trying to generate your own revenue while simultaneously offering my surfers an extra join option but consider this....

Try looking at it from the perspective of running a restaraunt to really see how warped this concept is...

Lets say I am running a restaraunt, and the average dinner plate is $29.95
Our policy is to accept cash or credit card. But soon we say we want to offer more patrons a chance to dine here.

So lets allow patrons to pay for their meal with their telephone bill. In order to do this we need a phone billing company to do the billing...

Now if the partons are from the usa and they eat in my restaraunt.... a typical meal of $29.95 is now priced at $39.95 remember the credit card patrons will only pay $29.95 for the same meal!

Now the cook has preped the food.... the waitress has served it... the bus boy has cleared the table, you get the point, so after the patron has left my restaraunt of the $39.95 he paid to eat in my restaraunt I as the restaraunt owner am only entitled to a whopping $8.00 of the $39.95

Now the insanity comes in to play when I have to take a portion of that $8.00 and pay rent on the restaraunt,pay my staff,pay for restaraunt supplies,pay for restaraunt related services,etc

When normally a $29.95 meal I can spend half of that on operating expenses...15.00 and may profit the other $14.95

I don't think a restaraunt will stay in business very long if all of the operating expenses have to come from the $8.00 you recieved and not from the $39.95 that the customer paid.

So offering this option actually costs me more in the long run, because of the increased use of ingredients...(more surfers using more bandwidth,etc

I am sorry it took me 4 months to really see how unprofitable the pass by phone experience would be.
That's like saying affiliates are unprofitable since you make less. Were you also splitting the pbp sales with affiliates? Most programs just keep that as extra money.


$29.95 - (processing 14%) = $25.75
50% standard split = $12.88
pbp = $8.00

Then you have all the operating costs associated with running a site/program. Whatever profit is left over can be reinvested or saved.


None of this makes a difference until you generate enough revenue to pass your nut. Do yourself a favor and get a list of countries that your current credit card processor DOES NOT process for. You might be surprised how many countries are on the list. Not defending pbp at all, if you're unhappy try Gxbill or one of the other phone billers.
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