Hey,

How does directi work? Say i have...

$20 in my funds.
Prices are set at $5 and i sell at $10 per domain.


So a customer comes and purchases 2 domains, directi takes $$$ from MY funds so i end up with $10? Correct?


Could someone explain in detail how it all works and how i actually gain profits from it? Just need to get a brief understanding on the system because it's apparently 'old-business' style.

Gee... it's been quite some time since I tried Directi, so perhaps someone more current will correct me.

Back then, the reseller had to handle all their own customer billing and payment processing. So basically you ended up with $10.00 in, for example, your PayPal account while Directi would take the $6.75 out of your Directi deposit account to pay for the domain registration.

Hope that helps...

Profits are made how exactly?

Wait...

$10.00 in the deposit
Customer pays $10 for domain.
Directi takes $6.75
I end up with $3.25.

Ok i understand now, so im getting money back and then just earning from that purchase. Thanks for help. Hopefully this can help others too.

how the customer pay you? does they provide billing processing for customers too or you handle customers billing?

When I used my Directi account, sub-resellers under me sent me funds (via PayPal) and then I loaded "funny" money in their Directi sub-reseller accounts. As we saw with the NH fiasco Directi sub-resellers are dependant on the parent reseller having an account with funds and in good standing. Possibly it has changed in the past several months since I dropped Directi but I thought it was a horrible model.

I think this model is still not changed and the sub-resellers are still dependent on the parent reseller. Considering you have the cost price of $6.95, in case of sub-resellers anything you charge over this price is your profit. For example:

1. Your initial cost price is $6.95 and you are charging $10 to sub-resellers.
2. You take pre-payment through Paypal for 10 domains that will be about $100.
3. After receiving your payment as eSology said you will load "funny" money for sub-reseller to spend in their account.

The amount you allow for your sub-resellers is not Real money and will always be used to spend funds from your account for domain registrations at $6.95.

if that feature is available at eNom it would make their reseller system 100% perfect.

because in old days for resellers who visit our sales office and pay cash i used to fund our main ETP account then open a ticket at enom requesting $XXX funds to be transfered into this sub-account, but since enom stopped transferring money between accounts it been big hassle for me to help my resellers and i ask them to either refill their accounts with CC or bank transfer, many resellers got pissed of this and i had to code a full reseller system using the API that miss ALOT of features that enom.com offer to keep them from leaving...

yet i lost several resellers who left for other options :bawling:

Bashar, I am the complete opposite. I don't want to touch sub-resellers money. I don't want to be a filter. Let them load their own money and deal directly with eNom. That is what works for me.

Well,
They don't want to do that, Enom charges more than a hundred to start.

Originally posted by kevhosting
Well,
They don't want to do that, Enom charges more than a hundred to start. It is not a charge but a deposit that is used towards domain registrations. $100 is nothing since it is really only 10-13 domain registrations.

Originally posted by eSology
Bashar, I am the complete opposite. I don't want to touch sub-resellers money. I don't want to be a filter. Let them load their own money and deal directly with eNom. That is what works for me.

maybe because the nature of your biz, for my end i have sales offices and some doesn't even have a credit card thats why it would be very helpful todo so

esology : If i understood correct you can give reseller accounts without having an open balance and let resellers pay their fees directly to enom so that you will not deal with losses from fraud registrations , and how you can do all these

I'm an old ETP , never deposit money, used Registryrocket and made some money but this is more interesting. Can you tell me more ?

Originally posted by DOMN
esology : If i understood correct you can give reseller accounts without having an open balance and let resellers pay their fees directly to enom so that you will not deal with losses from fraud registrations , and how you can do all these

Yes, you setup reseller accounts. Their account is just like yours for loading funds and all. Now, the part you won't like is that if you have sub-accounts go south with fraud you are held to the fire. I haven't been burnt yet because whenever I notice funky stuff I contact eNom fraud dept and they take care of it before its to late.

esology one thing i need to ask again
Do you need to fund your account to create sub-resellers and allow them to operate if they deposit on their own their funds ?

If this is possible then the system works so that if they have funds to their accounts they could spend them and if not they drag the money from your account ?

In case they operate with their own funds why you are responsible for them especially when you don't have funds to your account. Do they create a negative balance to your account and take from your profit if/when you make profit

Also some thoughts about the price of enom
Let's say i buy with 8.75
I pay some fee for the processing when i deposit funds
I don't know the exact rate so i assume the same as they have for their resellers ( 3% + 0.95 )
The 8.75 becomes 9.96
If you sell the domain 12 ( clear sale price minus processing fee is 10.69 ) 10.69 - 9.96 = 0.73

With profit 0.73 and so large competition is there a meaning to all these

It's more profitable to start create reseller accounts if you find a 6.95 account ( and earn a clear $2 )
Even in this case you take the risk of fraud ?

enom says they pay you with check after 90 days
There are banks around the world that i know where they keep the check for 30 - 45 days to clear
According to the bank they may charge a percentage based on the amount of check plus a standard fee
The funny thing is that when i asked a bank they said that the check is a form of wire because they send the check to be verified
The bank that owns the check verify it and wire the money to the account of the bank you deposited the check
Then the last bank gives you the money after it takes his comission
If you will take your money 4 months after your sale and pay the bank 4% + 35 USD comission where is your profit ?

Ending a small note about wire
Banks cooperate with specific bank networks
This means that if you send a wire from US to Taiwan for example the best case scenario is to pay commission to US bank and later the recipient to Taiwan bank
The problem is that when the Taiwan bank is not a big one and the US bank doesn't have a direct cooperation, the US bank will transfer the amount to the closest bank that has business relations
The same will happen to the intermediate bank, they will send the money to the next nearest bank hop... and the money will continue to travel until they arrive to your bank
As you understand all the banks between the US and Taiwan bank will take a share so wire is not always the best option
I believe Citibank works best for this but it has the highest rates around

I'm sure enom makes profit from the 3% + 0.95
First because with these amounts they process monthly they could have much lower than 3% ( the bank pays %1.5 to VISA so %1.6 is the lowest possible for a business to have if they have good monthly volumes )
Next the 0.95 is extremely high because their service is used to sell volumes like 8.95
If you were a large corporation would you consider cooperate with a bank that charge you with this amount of standard fee per transaction ?
The 0.95 is nearly the same they make for their domains ( they pay to Verisign $6 for .com, 0.25 to ICANN = 6.25 - 6.95 = Profit for enom 0.70 )


Anyway my point is that i don't see a profit for the simple reseller to all these


PS. Do you know if domainsite.com with their 6.99 include the paypal processing fee ?