I am currently trying to decide on which payment service to use. I will not mention my final three choices because I know the good, the bad and the ugly about them all. My concern is with pricing. I seems after running the numbers my profits with some companies will be greater if I have fewer transactions while with others I'll be paying more with a low number of transactions but my profits will be much greater with a higher number of transactions.
After all of that My question is to anyone who has a hosting business.
Can you give me a rough estimate of how many transactions you did in your 1st, 2nd, 3rd, 4th, 5th and 6th month.
I think I could make a better longterm decision with this info.
Thank you to anyone willing to take the time to help me out.
It all depends on your plans. Do you offer a discount if they pay quarterly? This would cut down on your transactions.
Talk to the processor - you can usually get the transaction rate down to $.15 - since this is what will eat up most of your profits.
Right now - all of our clients - (about 50) are only referred by our clients. We do not accept clients from "the outside". Most prefer to pay every three months & we give them a discount. A few have opted to pay for one year.
Well, it would be possible to look up some aggregate data from that particular market segment but it is important to realize that "averages" are just that - mathematical averages.
I think a better way to try to determine your # of transaction is to look at your anticipated method of marketing and then see what kinds of results other companies have had using those methods.
This way you can have a better handle on what to expect in terms of transaction volume as it really does vary from "very few" to "very many" transactions. It is all across the board. Some Web hosts do a handful of monthly trans and other Web hosts do many thousands of transactions.
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A good rule of thumb is to assume your business will grow. Hence your transaction volumes will only go up. However, try not to assume you will be doing 10000 monthly transactions by 6 months - so look for an offering that provides you good start up pricing, with a reasonable line of site to reduced rates.
Give Chris @ CDG a call - I think you will be pretty happy with their rates/solutions...
I have decided to go with fewer hassels ans less profit. There are so many things to worry about in doing this. I'm also in the process of setting up my web design company. I also have two young boys that I stay home with. So with very little time I think I like fewer hassels. Fortunitly I can afford to payout abit more up front although it's not a pleasure doing it.
z22, Thanks for the advice. They do look good. I'll keep them in mind if ever I need a change. I am in the process of setting up my WHM Autopilot and I needed someone that was compatable with that script. I have found someone. Thanks again.
Originally posted by spencermjax I have decided to go with fewer hassels ans less profit. There are so many things to worry about in doing this.
Hi Spencer - Probably the best decision, particularly if you are in a position to float the difference until your revenues hit the threshold required to justify a merchant account vs payment processor.