"krazy" wrote:
paypal is a payment processor and they charge like 3% only not comparing both but, the infrastructure should be lesser than what owned by paypal
what i think is 30% is very very huge , there will be nothing left to the distributor especially in video content business at this rate
Ran across this today, and think it's relevant to this older conversation.
http://feefighters.com/paypal-calculatorIt really illustrates the benefit for the channel store for
very cheap channels. Paypal is easy to integrate, but they are actually more expensive than the channel store 30% when the channel is $0.99. As the price goes up, paypal becomes more attractive compared to the channel store, as long as you don't mind tracking sales/subscription data. For some online sites it's already a requirement for their normal business, so of course it makes sense to go that route. At the other end of the spectrum is integrating a merchant processor for your own online billing. This will (apparently) let you achieve the best profits, but that requires quite a bit more up-front effort to do
correctly (as I can attest to, and did so earlier in this thread).
Anyways, more food for through on those considering which payment scheme to go with.
P.S. I hope Roku has a really good deal with a merchant processor, otherwise they are getting frighteningly little for the $0.99 channels.
-- GandK Labs
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