VISA new chargeback/credit ratios

[cj]

Originally posted by Marc De@Jul 2 2003, 08:26 AM
I find one very exciting possibility in all of this. This just may FORCE our model to change (something that has needed to happen for the last year). We need to find a different mouse trap. Selling masses of micro trials and doing everything legally possible to get those to convert so you can recover the huge $40 loss up front just isn't the way to do it anymore. And its the huge $39.99 price tag that hasn't helped the c/b issue in the first place.

We've been in a wicked spin downward for quite sometime and Visa with one simple little rule may be the one to force the correction of that spin and pull us back up!

So in the same sentence I say thank you Visa and kiss my ass haha

hahahhaha
i dare you to write that on your ass Marc LOL

I totally agree with you ... this is the beginning of this business becoming legitimate and more professional ... all those idiots from the dot com days who invested capital in porn companies in the last 2 years should have waited until now.

I am more excited about the industry now than I have ever been - there is so much that can be done now that we are all being forced to abide by a set of rules.

My concern is this - anyone doing substantial volume has a HELLUVA time keeping their c/b's below 1% and if you aren't doing substantial volume its much easier to stay below 1%.

this is why I don't believe being one of the 'big boys' is going to be enough this time ... imho the big companies are the biggest targets for these rules, and while smaller companies can hover under radars, its the big companies who get the attention.

however, 1 big company equals 20 medium companies, 50 small companies etc ... the effect on webmasters if small programs topple is very little, but if a major sponsor goes, the payout model will start to drop and the payout offers of the medium and smaller guys will start to look more attractive

i've made this point here before in more detail - 1% of a really high number is still a really high number - visa's % point is just pulled out of their ass - at the end of the day, if the NUMBER (not %) of chargebacks you are doing exceeds a certain amount you are gone.

With that said, if the 'big guys' fall then who do you think will get their volume? The smaller programs still under 1% ? Can those smaller programs pick up the tab for a huge influx in new sign ups? Can they increase their volume rapidly and then keep their c/b's below 1% down the road?

I think this has been happening since early to mid last year ... i think we are going back to the beginning of the cycle to do it properly LOL not enough people went out of business, time to do another round of weeding!!

This is such an important point that you have made, and i don't think many of the 'medium' companies realize what happens when you get 1000 more signups per day than you budgeted for ... all is fine for about 3 months, chargebacks come in and its

oh well, its been too easy up until now anyway
time for a real challenge