cost of websites

[southy]

cheap is 15 dollars a month or less.expensive is 30 dollars a month.

charge back,is that people cancelling?

one thing that annoys me is when you join these sites you should have the option for recurring membership,or one off membership.it seems wrong that its the customer that has to make all the effort to find the (sometimes hidden) way of cancelling.

As for the costs of setting up,i can imagine that they could be huge.

[MAI Productions]

Charge back is when the person signing up denies knowledge of this (i.e fraudulent use of the card number) and the merchant has to refund their customer. They take a high percentage to cover the cost of this

[southy]

okay,is the rate of chargeback higher for adult websites than other goods?i guess it must be.

[MAI Productions]

On-line card fraud is higher in general than in the high street but certainly more so with this industry as if you subscribe to a site there is no delivery address so nothing to verify. Say somebody gets your details, it's hard for them to buy stuff as it would be delivered to your address. But if they sign up to a pay site, nothing to deliver. the first you know of it is when you get your bill so the card companies build this into their charges

[tas]

at todays exchange rate $30 per month is only about 50 pence per day which is pretty cheap if you think about it, Especially if you join a site with all exclusive content. The costs of setting up such a site and to keep producing the exclusive content costs a lot of money, so if you get to see it all for around 50 pence per day I would think that is pretty good value.

[southy]

how many members do these sites have?

[Smiths Media]

QUOTE "The reason CC processors charge a high % is because the adult industry has a very high charge back rate and not many merchants will accept companies for this reason "

This is not the case - this is the assumtion people beleive that accounts are hard to source though in the truth is that banks do not want to be linked to porn for branding issues.

The reason you pay higher rates for card processing with companies such as CCBil etc is that you get a total solution, affilate scheme and also they support your end users who have billing issues.

This type of billing model is called '3rd Party Processing' if you were to have your own merchant account you still need to get a gateway into the bank and then manage your own user issues.

As the internet revolves around affiliates you would also have to look to make your own affiliate system or buy one in - again these can vary from a 2/3K $ upto 10/20K$ depending on what you need. You then have to cut all the chq's for your affiliates and send them out on time.

Total all this up then compare then compare the rates and you will not see a great deal in the difference in price. To use buying a car as an example -

A novice driver would not go out and buy a 5L car they would get a 1L then as they become more confident will upgrade to 2L 3L etc.

Its the same with processing

Key Benefits of 3rd Party

- Affiliate Scheme
- Total Managed Managed Solution
- You get instant trust, WM's know they will be paid

[southy]

Thanks for that.interseting.