Quote:
Originally Posted by Robbie
I'm one of many who believe they are dying because they took people's money from Zombaio and invested it into opening RedPass.
When they opened Redpass that was the exact time that they suddenly raised their rates, starting holding money back in "reserves" and started the first bit of not paying on time.
If they had stuck to being a billing processor, their rates were fine.
Get your own merchant account and you won't even pay that much.
But taking money that wasn't really theirs to invest in a new business was the downfall. Not lower rates.
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Perhaps - but can you imagine being in adult processing over the last 5 or 6 years.
Zombaio opened their business just as vast swathes of the adult market started to discover free porn. So a low margin business model that relies on big volumes to maintain itself was always going to be very difficult in a shrinking market.
However after the demise of Epass, and the continued need for alternative wallets to fund online activities, Redpass seems like a very reasonable way to increase the companies margins and viability. Making 1% on membership sites is an unsustainable model, adding extra revenues sources in a complimentary business is a necessary move.
To say that they took peoples money to invest in Redpass might be true, but I dont imagine we are talking about a lot of money. They were probably already in a considerable hole. The poor execution of Redpass showed how little time and resource had actually gone in, it was repeatedly late for launch, then full of bugs.
All too little too late.
