Hello,
@Dani Picas Oh yea I found the tribute part, thanks! I think it'd be great if they had a page with only tribute toward a model, would be more clear when you give the URL.
Dani Picas said:
To be honest I have answered so many peoples questions and then they don´t end up making the site. So, seeing as it´d be unpaid time for me, I´m a bit reluctant. I don´t mind helping on here though.
Ok I understand, I am totally up to pay for your time / answers though. Please let me know if you may be up for it, in that case and I'd send you a short PM with the questions I'd like asking so you can tell me your price?
@KatrinaVega This is the methodology we are using for setting up sites
http://theleanstartup.com/principles, it's a "normal business" methodology. We are also talking with lawyers, experts in payments and so forth. There are quite a few info we can only have from you, the potential users. If you would rather not spend time engaging with us, I totally understand, I am forcing no one to reply here..
Also I'm not a "net-pimp" wannabe, adult industry just appears to be an easier business in some regards: many talented people refuse to work in it due to morals / not having to tell their friends & family etc. So opportunities are more numerous.
@DeezNA first of all, I am sorry for getting a bit mad. Whatever my take was on your message, I should have not shown any aggressivity.
I like and value your feedbacks, I have learned quite a few things from you since we first chatted while I was at startup weekend. The data structure/handling which you were laying out, that we'd need to
manually gather it etc. was wrong imho, as well as your example of you easily gathering models, knocking at a PSP door and aggregating transactions with a lower cut on payment processing.
That got me a bit pissed, at it was used to prove that what we want to do is pointless whereas the arguments behind are not reflecting reality. I have to say though, that I have duly noted on our board to provide
tangible, clearly identifiable value and that "convenient payment processing" is not really part of it, arbitration is. So yes, I took the feedback.
DeezNA said:
You claim transparency and yet you can't even give us a straight answer on what percentage cut you are taking directly from us and why you are taking it.
I have replied to this actually: We would add 15 to 25% on top of your requested amount. This would result in a 80 to 87% revshare if you look at it this way. The calculations show that the default on-top percentage should be more around the 20/25%, and 15% would be the best we can offer to partners generating more transactions than average.
The cut would be taken for (in the first version of the product):
- letting you have customers pay for your contents/services directly with their credit card, from any device
- avoiding you to have to register as a merchant and pay $500 to $1000 upfront costs in order to process payments (which you have to pay if you want to process payments with Epoch for example)
- protecting you from chargebacks
- it would be really easy and convenient to use, integrate into your website etc.
- support, if you are having any trouble using the service, receiving a payout etc. - but we could not arbitrate transactions for contents that were not delivered by our site: we'd simply protect you from Chargebacks in case it arrives -
- adult-friendly: i.e. can be used on an adult site without any issue
Deezna said:
If GiftRocket can go as low as 7% per $100 and cut a profit, that tells me that the PSP they use likely takes about 5ish% (maybe less, maybe more)... even giving you the benefit of the doubt that the one they use is on the low-end and the service you choose takes... let's say 10%... you're still taking 5-15% of our commission for reasons you either can't or won't justify.
As soon as you take an adult PSP, the prices skyrocket because it's considered "high risk".
Giftrocket is likely to pay somewhere around 2-3% to a PSP from processing payments. Adult PSPs are more around the 8-10% as you mentioned (with flat fees of $0,30/0,40 per transaction).
CCBill and Epoch are starting at 15% and hardly going under 10% for example.
Also when working with percentages, please take care not to assimilate the ones "added on-top" with the ones "removed from total". Adding 25% fees on top of your requested amount, so for example billing $125 to your customer to give you $100 results in a 80% revenue share - not 75%. It makes quite a difference where there starts to be a few different percentages combining.
Here is the list costs directly related to a transaction (without the servers running, salaries etc.). For this example, I consider a model wanting to receive $10 using our service which adds 20% on-top. I leave VAT out.
- In total the customer has to pay $12.
- Chargebacks: whenever it occurs we receive a fine of $40, let's say it's about 1% chance occurring per transaction.
--> On average, chargebacks costs us $0,40 per transaction (1% * $40)
- PSP: the PSP charges us a flat fee + a variable fee. In adult, good numbers to go with are $0,40 per transaction + 10%. The variable fee is taken from the total, the fees are due even in case of chargeback.
--> The transaction would cost us $0,40 (flat fee) + $1,2 (variable fee) so $1,6 in total.
So eventually, the customer pays $12, we give $10 to the model, $0,40 goes to chargeback "insurance policy", $1,6 to the PSP. Which leaves us with $0 margin.
Now of course, if the model wanted to receive $50, the customer would have to pay $60 and we'd make a margin because of flat costs being diluted. With the numbers above, we'd get $3,2 margin which is about 5% of $60.
Once we start aggregating many transactions, the PSP would offer us a discount, and we hope for a variable fee more around 7%. Hence why we could offer up to 15% on-top processing fee.
DeezNA said:
You're not bringing us customers, you're not bringing us services we don't already have, you're telling us to do all the "hard parts" of your job that you don't really feel like doing - you just want a reason to make a profit.
To take
@Dani Picas example, she has a personal website
http://www.danipicas.com/ and there's no payment processing on it. It is the case with many personal websites of many performers. So it's not a service they already have easily accessible.
It's possible DaniPicas, and other performers having personal websites, does not want to process payments on her site. What's your take on it DaniPicas?
It's also likely that for many of them the problem is that it is not easily accessible to them because: content is adult, many payment processing companies don't work with that, engaging with a PSP takes time and it would cost $1000 to start getting payments.
All of this, we want to remove it: that's what I call convenience. You sign up to our product, upload legal documents, and you start generating payment pages: either on the fly to send an URL to a customer, or to integrate them into your website. In that case we give you the code to copy and paste, where and how to do it. And if you're having any problem, we'll help you getting it done.
The second part of this business would be content delivery indeed, so that basically, to stick to the example of DaniPicas website: let say she wants to open a video section at the top and sell them.
She would have to drag and drop to our service all the videos she wants to propose in this section. For each video, she would decide the price & put the title. She could also choose cover image, if there is a preview related to it etc.
From there we'd generate automatically a bunch of lines of code that she would simply have to copy and paste in her site in order to get a Video section running. Whenever a customer clicks on the button "Purchase" below a video, he'd be displayed our payment form and a link for download would be sent to him after completion.
If DaniPicas has a customer contacting her via message to set up an 20 min long cam show which she is up to make in case she gets $100 out of it, then she could use our service - directly from her mobile - to:
1) Enter $300
2) Enter "20 min Skype camshow"
3) Send the generated URL to her customer.
4) He clicks on it, see the payment page, $120 to be paid if we add 20% on top
5) Right after completion, we let her know, boom payment processed.
Of course, she could decide to use Giftrocket instead, and ask the customer to send her a Giftrocket to
danipicas@gmail.com for the amount of $120 (or less). He would have to be from the US, he may need to signup or extra details about how the transaction is gonna work out etc.
But if she gets it done this way, she would make $111 instead of $100. No problem, we cannot compete with that (except if we are so convenient that she'd rather use us anyway).
See value in that?