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I'm getting a ton of positive response from smaller merchants who appreciate having another way to bill... they're excited that there aren't any annual dues, as would be the case with other billing methods.
Remember, most people are already paying around 25% on checks and 15% on CC's plus a 5-10% reserve. My experience with merchants has been that they are more comfortable getting a simplified guaranteed payout. If we took a poll of most merchants I think there would be an overwhelming amount of them who have low confidence that they'll ever see the money they have in reserves... moreover, that a 6 or 12 month rolling reserve is too far out for them to place much value on it.
Our industry is growing up and changing in ways that many of us would have never expected. Giving merchants one more way to monitize on their traffic is viewed by pretty much everybody to be exciting news.
My original business model a few years back when I first conceived of this was that payouts would be based on collections. After much consideration through the development process, I changed to a guaranteed payout. You are free to disagree, but it is my belief that a simple guaranteed payout is the most mature form that this business model can take. The reality is that the average merchant needs something solid where they know their numbers so they can build a business model on top of it. Much of our collections comes 60-90-120 days down the road and even longer on some accounts.
My goal has been to make the process simple and take the guesswork out for merchants. I believe that when we focus on doing our job which is billing and collecting that the merchant can stay focused on his core competancy which is generating sales. At the end of the day, that's what we all want is more sales right?
Cheers.
Brad
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President at MojoHost | brad at mojohost dot com | Skype MojoHostBrad
71 industry awards for hosting and professional excellence since 1999
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