Hi
I am promoting NUTRA offers for last 12 month with good success,
however i am looking to make my own offers as i am tired of BS i see&get told all the time.
My traffic source is not 65 % rebill rate as many asks ( even avarege per industry is 64.3 % ),
sometimes 60-50-45 % , ofcourse, for each rebill rate different payout so that everyone is satisfied.
I have steady traffic source and i would see the realitty myself and i would not need even 50 or 60 % to make it work,
that why i want to make my own offers, but I understand there wil be many things i will get to know only when i will start doing.
At the moment main problem i i am looking to find solution is merchant accounts.
I live in EU.
If there is someone who have experience with this, please let me know.
Thanks!
Best,
Tomass
In for the read
I'll take the bait. Work it out in your head all the various expenses associated with running your own offers, then ask yourself what rebill rate would you need to be profitable.
You will find that your major cost driver is traffic, so the minimum rebill rate required is a function of the cost of traffic to some degree, following that you will probably find the following major cost factors: refunds, chargebacks, processing, fulfilment and support in approximately that oder, though it all depends on your ability to negotiate.
If your own traffic is billing at 60% it can still come with a high refund and cb rate and then its bad, if its 60% but no refund and cb issues (you will always have it but not excessive is what I mean) and your media cost is low then you can still have some fun. Consider that you need a certain scale to get good prices and to make it worth your time.
in my experience the product creation and fulfillment side is pretty straight forward. dealing with customer service can be painful and it can take a while to hire the right people or service to manage it. there are services to manage the chargebacks and it can become costly with scale
i have been involved with a few different trial diet offers and we were constantly consumed by managing chargeback ratios. there is an art/science to managing the chargeback ratios and it is crucial to do so because mids can be shut down with no warning. they will hold deposits and reserves for quite some time so cash flow can become an issue. most banks are also very restrictive now and will lock accounts if you try to run rebills from other mids
there is a lot of additional overhead involved with keeping the ratios down and some of the processes can be legally questionable depending on where you operate. as with everything else, it too can become expensive as you scale
also, when mids are shut down the signer associated with them will effectively be blacklisted from obtaining more accounts within the industry. this can quickly evolve into having to hunt down signers to create a new company and apply for mids. they need to have decent credit and you typically have to pay them for the use of the mids since it is all in their name
the reality is it will take a lot of outsourcing and finding people you can trust to help operate the business. it also requires more capital to float because you no longer have the benefit of net 3 and net 7 terms
not trying to scare you off of the idea. just sharing my experience to help you prepare for these obstacles
ATM everyone in europe says - NO to trials..
I will keep looking.
I have partners where i send traffic and based on rebills i have payouts, which is good for me,
but if someone have ideas about MIDs in europe, i will be happy to hear.
Thanks to everyone for the input.
There is always a bank out there looking to board people, I am sure some guys will write you here to provide you merchant accounts. Few things to keep in mind regarding this as you have the disadvantage of not having any proven history in running a complete offer. For EU processing:
- Do not give large sums upfront, if there are setup fees try to have them deducted from the initial processing batch
- Make sure to be aware of visa/mc chargeback and fraud regulations and bring them up in conversation, this will reaffirm that you know what you have to do
- If someone tells you it will be a 10% discount rate and 45+ USD for chargebacks they are setting you up to fail and not make money
I noticed that in another thread you mentioned that you only have US traffic, in this case EU processing may not be the best option for you as approval rates are generally lower.