05-25-2004, 11:11 AM
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Confirmed User
Join Date: Mar 2002
Location: Infidelville
Posts: 1,902
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Quote:
Originally posted by SinEmpire
Hi Everyone,
Looks like there's a few new things here for me to address, so here goes.
1) The $249 setup is waived for merchants that are currently transacting business. So, if you're a NewB that's not doing any business you're going to pay a setup - if you're an established business you will not. The note about waiving setup was in a press release but is not currently reflected on the web site. Our goal, to attract qualified merchants who recognize the opportunity - not to make money on setup.
2) 123Bill is an option that is available to all US residents that are 18 years of age and older, regardless of credit history or worthiness. There are no interest or fees charged to the consumer and they are given 30 days from the date of purchase to remit their payment... the physical bill gets mailed the same or next business day after purchase.
3) Of course you can check out a signup form, you can go here: http://sinbucks.com/mpa2/signup/14/j...eferrer=&prg=0 This is one of our SinBucks pay sites so if you actually go through the process, please contact me directly to void the transaction. Click on the button near the top which says "Get Instant Access, Mail Me the Bill".
4) From the outside a 35% fee sure does seem high. However, realize that this is a guaranteed net payout for merchants which is not subject to chargebacks, reserves or uncollectables. The bulk of this "fee" is ultimately to accomodate for funds that go uncollected for whatever reason. The only exception to this rule would be affiliate or merchant fraud.
If you're comparing this to a traditional merchant account then you're misunderstanding the opportunity. Here I'm telling you that you can sell a recurring full price membership, free and cheap trials... in lieu of sending this same traffic to a dialer or 900 number where your net collections would be much lower than our 65% on gross and you would not have the opportunity for rebilling.
To further put all of this into perspective... The average new account with a 3rd party billing company is paying 15% with upwards of a 10% reserve for 6 to 12 months. That's still 25% that you're giving up right away to a company that is getting settlement on their merchant account (guaranteed funds) within days. We give the consumer a net 30, you simply can't compare the risk but I would think most see this as I do after thinking about it... a 10%+- premium over 3rd party billing for a guaranteed payout on discreet pay-later billing ain't bad. 3rd party CC billing companies are passing along chargeback fees now, etc. That will certainly eat into reserves, at the least.
I'm not prepared to be quoted on check return and processing figures but I believe that if a gallop poll was taken we would all see that returns and the total cost of accepting checks can be as high or even higher than 25% on original gross billings after return check fees are levied, etc.
I see many friends in the thread posting kind comments, thank you for your support 
Cheers,
Brad
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excellent, brad. 
people, read this. understand it - from all angles. it's a win-win. |
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