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Old 11-20-2010, 08:01 AM  
Barefootsies
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Join Date: Feb 2005
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Quote:
Originally Posted by stocktrader23 View Post
We seem to be on two separate pages here. First, as for the billing. As mentioned previously, CCBill or similar could handle the billing exactly how they do now. It's exactly the same thing as billing for any other content you license to sell just with different price points.
Simply put champ, micropayments do not work in the 3rd party billing platform. No one would make any money selling clips for pennies.

I am going to take a wild guess that many in this thread do not have their own merchant account, nor have dealt with third party billing (i.e. running their own pay sites) and know the differences between them.

The micro payment idea system it's self is not flawed per se, however, you would need to have a merchant account for it to work realistically for the prices you are advocating. Otherwise processing alone... rolling reserves, transaction fees, not to mention bandwidth/support and the rest make it an unsustainable business model. Which does not even touch on the pipe dream of 50% affiliate pay outs.

There are many other back end factors that go into this, but as Doc mentioned, it is one of the reasons C4S and alike do it at .99ct a minute. Under that business model, they make money to cover bandwidth/staff/processing fees/reserves/support/etc. based on the volumes of business they do.

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