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cj · 11-17-2002

Big boys can suffer through quite a large number of chargebacks, or even buy additional traffic out of pocket to compensate. The smaller webmaster who is making a decent salary off their paysites has no recourse.
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huh?!??!?!
because a company is larger it can afford chargebacks?!??! The bigger the income, the bigger the bill ... and the more chargebacks, the more paperwork, the more paperwork, the less visa want your biz.

I'm going to do some math .... this is based on 100% of surfers converting to a full month membership (yeah that's likely!!)

LARGE BUSINESS:
EARNINGS: 1000 signups per day x $39.95 = $39, 950 per day x 30 days = $1, 198, 500 per month.
WEBMASTER PAYOUTS: 1000 per day @ $40 = $40 000 per day x 30 days =$1, 200, 000
CHARGEBACKS: 2% chargebacks = 20 chargebacks per day = $799 per day x 30 days = 600 chargebacks = $23 970

Earnings = $1, 198, 500
Payouts = $1, 200, 000
Chargebacks = $23, 970
Total Chargebacks = 600
Total Forms = 1200+ (1 form for merchant, 1 for customer + god knows how much other paperwork involved behind the scenes)

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THE REALISTIC VERSION

LARGE BUSINESS:
EARNINGS: 1000 signups per day, 50% cancellation off trial = 500 signups per day $19, 975 x 30 = $599, 250
WEBMASTER PAYOUTS: 1000 per day @ $40 = $40 000 per day x 30 days =$1, 200, 000
CHARGEBACKS: 2% chargebacks = 20 chargebacks per day = $799 per day x 30 days = 600 chargebacks = $23 970

Earnings = $599, 250
Payouts = $1, 200, 000
Chargebacks = $23, 970
Total Chargebacks = 600
Total Forms = 1200+ (1 form for merchant, 1 for customer + god knows how much other paperwork involved behind the scenes)

The bottom line for visa = 1200+ forms per month per company who generates 1000+ joins per day.

>>>The smaller webmaster who is making a decent salary off their paysites has no recourse.

Visa isn't after the smaller webmaster - all that has been asked of them is $750 and proof that you are a legitimate business and that your chargebacks stay below 2%. The 2% rule doesn't apply when 2% = 1200+ forms per month. In my opinion, the business' which are in the BEST position right now are the small to medium guys ...

11-17-2002	#32
cj Members Want to see your own Advertising Here! Join Date: Oct 2002 Location: Down Under Posts: 5,202	Big boys can suffer through quite a large number of chargebacks, or even buy additional traffic out of pocket to compensate. The smaller webmaster who is making a decent salary off their paysites has no recourse. ----- huh?!??!?! because a company is larger it can afford chargebacks?!??! The bigger the income, the bigger the bill ... and the more chargebacks, the more paperwork, the more paperwork, the less visa want your biz. I'm going to do some math .... this is based on 100% of surfers converting to a full month membership (yeah that's likely!!) LARGE BUSINESS: EARNINGS: 1000 signups per day x $39.95 = $39, 950 per day x 30 days = $1, 198, 500 per month. WEBMASTER PAYOUTS: 1000 per day @ $40 = $40 000 per day x 30 days =$1, 200, 000 CHARGEBACKS: 2% chargebacks = 20 chargebacks per day = $799 per day x 30 days = 600 chargebacks = $23 970 Earnings = $1, 198, 500 Payouts = $1, 200, 000 Chargebacks = $23, 970 Total Chargebacks = 600 Total Forms = 1200+ (1 form for merchant, 1 for customer + god knows how much other paperwork involved behind the scenes) ------- THE REALISTIC VERSION LARGE BUSINESS: EARNINGS: 1000 signups per day, 50% cancellation off trial = 500 signups per day $19, 975 x 30 = $599, 250 WEBMASTER PAYOUTS: 1000 per day @ $40 = $40 000 per day x 30 days =$1, 200, 000 CHARGEBACKS: 2% chargebacks = 20 chargebacks per day = $799 per day x 30 days = 600 chargebacks = $23 970 Earnings = $599, 250 Payouts = $1, 200, 000 Chargebacks = $23, 970 Total Chargebacks = 600 Total Forms = 1200+ (1 form for merchant, 1 for customer + god knows how much other paperwork involved behind the scenes) The bottom line for visa = 1200+ forms per month per company who generates 1000+ joins per day. >>>The smaller webmaster who is making a decent salary off their paysites has no recourse. Visa isn't after the smaller webmaster - all that has been asked of them is $750 and proof that you are a legitimate business and that your chargebacks stay below 2%. The 2% rule doesn't apply when 2% = 1200+ forms per month. In my opinion, the business' which are in the BEST position right now are the small to medium guys ...