Quote:
Originally Posted by lagcam
Interesting (self promoting) theread, but there is more to consider when evaluating this than straight "payout amounts"......
For example, how do you compare to the processors A, B and C in terms of
[a] WHEN you payout?
[b] Whether there is any chargeback or non collection possibility?
[c] The position with regard to VAT on those payouts?
It also would make your examples more transparent if you used a common currency in what the site receives and what the customer pays. In the example you gave, I calculate the customer is paying almost double what the site is receiving. (based on $1.6 to £ approx)
Nothing wrong with that, but clarity helps understanding.
|
Hi legcam,
Indeed, allow me to elaborate, starting with the points you raise:
[a] Payout terms vary from weekly (processor C) to 30 days end of month (processor A). We pay bi weekly, on the 1st and 16th each month.
[b] Since people tend to pay their phone bills in full, chargebacks are generally low which is why we factor payment and pay our partners before we get paid by the telcos
[c] In our case, since commissions are paid from a non-EC country is EC.VAT free.
The common currency all processors use is the US Dollar. When a surfer from say Iraq makes a regular IDD (International Direct Dial) to gain access to websites, there is no real way of knowing what he pays (it depends on carrier/priceplan etc) which is why we quote ?IDD rates apply? in the call-to-action.
With premium rate phone billing, there are two primary billing methods:
- Pay per Access (PPA) ? here, the ordering process creates the revenue, payouts are fixed, access time variable
- Pay per Minute (PPM) ? access is granted for time that the surfers are connected to a premium number
Historically, we have only offered PPA - whereas Processor A has only offered PPM.
Now, like with processors B & C, we offer both (but they offer PSMS also)
But most webmasters, understandably, still associate us with PPA and to this end we are launching an ?eight minute call? campaign to highlight the fact that we now offer PPM (with better rates) so that a like-for-like comparison is both easier and fairer:
