Tag Archive | "Business Model"

Profiting From Tablet Devices: Part 2

Tags: , , , , , , , , , , , , , , , , , ,

Profiting From Tablet Devices: Part 2


Yesterday, we’ve seen some ways that you can profit from the increasing number of people who are interested in using a tablet as their secondary, or maybe main internet access device. There are a few more ways for entrepreneurs to make money from them. Here are some more ideas that you may want to consider:

 

  • Developing and marketing apps

 

As the amount of tablet users grows, so does the demand for applications that run on the common tablet platforms like iOS and Android. In the last 2 years, the demand for these apps has, in fact, exploded. Businesses are looking for a way to get their brand better known and would love to have an app made for tablets. Software developers are looking to cash in on this new trend by making various kinds of programs that can run on these devices.

 

So if you have some experience developing software, you could make some money either by creating apps that someone else requested, or by coming up with unique ideas for apps and creating your own. One business model that works really well for many tablet apps like games and accounting tools is the “freemium” one. The basic version of the app is free, but in order for the user to unlock more levels, or to get a more powerful version of the app, they would need to pay a small amount. This helps draw users attention to the application and like it, they may want to spend some money in order to upgrade.

 

Furthermore, it is also possible to integrate ads in some types of apps, which means that you can profit either from selling a paid version of the app, or get ad revenue from the free version.

 

  • Selling Tablet Insurance

 

When spending anywhere from $200 to $700 on a tablet, people naturally want to protect their investment. Obviously, there’s a manufacturer’s warranty available, but the problem is that it only covers manufacturing defects for a year or so and nothing more. Mobile devices that people often take with them anywhere they go are naturally prone to some hazards such as accidental damage, loss or theft.

 

There is a small, yet growing market for mobile device insurance, which provides repair or replacement in case someone’s device gets lost, stolen or damaged. While selling insurance can sometimes be a bit complicated as you would have to follow some regulations and obtain the proper permits in many jurisdictions, it can still be quite a profitable venture if you’re willing to try and enter a relatively new industry and act as a true entrepreneur.

 

These were some ways to make money with the rising popularity of tablet PCs. Of course, there are definitely many more that you can find if you make a bit of effort and research some money making opportunities.

Posted in make money onlineComments (0)

Some Overrated “Work From Home” Offers: Part 2

Tags: , , , , , , , , , , , , , , , , , , ,

Some Overrated “Work From Home” Offers: Part 2


We’ve seen a few kinds of work from home offers that are often hyped online as excellent ways to make money but very often end up producing results that were far less than what they buyer would expect. And in many of these cases those involved have actually lost money instead of making any. While there are definitely many perfectly legitimate work from home opportunities which can help people earn money online from the comfort of their home, one needs to be very careful in evaluating the programs that they join. Think of how an experienced investor or business man would act when investigating a million dollar business opportunity. They would check out every detail of the deal, as well as the people behind it, to make sure that any claims that were made are actually true. What you need to do is similar.

Here are a few other examples of home based business opportunities that are often little more than hype:

  • Product Distribution

This shares some similarities with multi level or network marketing, but is actually a different business model. While you may get bonuses or commissions if you recruit new people into the business, the main focus here is to sell the actual products to consumers interested in them. This doesn’t mean, however, that the deal is going to be 100% legitimate and profitable. What you first need to do is to look at the products that you’re going to be selling. Is it something that people will really want to buy and keep buying in the long term, or is it just a “fad” product that will go out of style in a few months, if not weeks? What prices are you going to pay the supplier for the product and at what prices will you be able to sell it? Is there a real market for the product and which distribution channels can you use to sell it (online auctions, classifieds, e-commerce, physical kiosks/stores, etc)? You need to find an answer to all of these questions before you should jump into such an opportunity.

Also, you should be wary of any company that requires you to make a large bulk order before you can begin distributing the product. Very often, people who failed to pay close attention and get answers to the above questions have run into big problems. They ended up with a garage full of nearly worthless items that they simply had no way of selling at a profit, either online or offline.

When you sell physical items, you will also need to take into considerations the related costs of selling the products when you calculate the potential profits you can make. These costs include advertising fees, payment processing fees, online auction charges and more. While they may seem easy to ignore at first, the reality is that they can affect your profit margins in a significant way.

Tomorrow, we will take a look at some more work from home opportunities to watch out for.

Posted in Work from homeComments (0)

Facebook Ads Model Moving Towards Paid Organic Results

Tags: , , , , , , , , , , , , , , , , , , ,

Facebook Ads Model Moving Towards Paid Organic Results


Let’s face it: the world of online marketing is mainly centered around one thing: advertising a business or product. There are numerous ways to get the message across, such as paying for ads to be inserted into pages or search results. There are also actions that can be taken to make the promotion seem more natural, such as using SEO techniques. And then we have, of course, social media, which offers a variety of ways for marketers to get their message to the user.

 

Regarding advertising on Facebook, there has been a lot of talk about what changes are going to be brought to their current advertising model. One thing that is reported is that few people are interested in clicking on obvious ads. For many marketers, the pay per click ad model on Facebook, which functions in a similar way to Google Adwords content ads, has been a bit of a disappointment. Some report low interest in their ads and out of all people who click on the ad, few actually stay on the page and engage with it. Users already have a mental image of what the ads look like and where they’re going to appear on a page, so they’re a lot more likely to just tune out and ignore them, much like people who flip past the advertising pages in a magazine.

 

As a response to this, Facebook is undergoing some changes to its advertising business model, in order to change it to make advertising seem more organic and better integrate it with people’s news feeds on the site.

 

The new advertising options make use of features that have already existed on Facebook. When a business posts something to their Facebook page, their fans may get a notification about it on their news feed. However, this causes an issue of visibility. Many users are currently subscribed to dozens, hundreds or even thousands of pages through their Facebook account, as it’s very common for users to like their favorite bands, TV shows, celebrities and some less “famous” entities like the page of a local store they’ve visited or a website they found entertaining or useful and that had a Facebook “Like” button on this. This obviously creates a certain problem for marketers. It would be impossible for Facebook to display all of the updates to each fan, as this would result in blowing up the users news feed. Also let’s not forget that Facebook is primarily a site for person to person and not person to business interaction. While users may enjoy getting updates about their favorite businesses, they are more concerned about what their friends are doing and not what their local restaurant has on the menu today or he fact that the local auto shop they went to last month has a special on tires.

 

Facebook has put forward some innovative solutions to this, which we will look at tomorrow.

Posted in Internet NewsComments (0)

Simple Business Types You Can Start

Tags: , , , , , , , , , , , , , , , , , , ,

Simple Business Types You Can Start


Many individuals would like to have a simple business to start as an online entrepreneur. The advantage of the internet is that it gives you access to potential clients from all around the world without having to spend a fortune on advertising costs. There are thousands of different kinds of businesses that can be started online. But many would like something that is simple to do in order to earn some extra money. Here are a few examples of businesses that can be easily started depending on your skills:

  • Computer Support and Repair

Now practically anyone owns a computer. But the issue is, the majority of PC users don’t have the knowledge required to troubleshoot problems when they occur, nor do they have the time and patience required to look for a solution. This is where you can come in. The computer support and repair business model can take several forms. The most simple one to operate is a purely online type of business.

Here, you will provide remote technical assistance to users who are having problems with their PC. You can accomplish this by having the user install a remote desktop software, or use a plug in that is built into many commonly used programs such as Google Chrome or Skype. You can now gain remote access of the client’s computer and fix most kind of issues, as long as their PC can still boot normally and they can access the internet. You can set the pricing according to many different models, but for small, one man operations, this would usually be on a per incident basis. Advertising can be done through various ways, such as classified ads sites, social media, or placing ads in local newspapers.

Another thing that you can do is to offer your services as an independent technician to individuals and small businesses. Here you will troubleshoot and repair computer related problems by going to the clients location and fixing the problem. While there is usually some competition from larger support firms, especially in bigger cities, one of the advantages is that you can charge much less for each visit, thus earning you more business from those who can’t afford to pay such high prices.

This business model is not only limited to PCs, depending on your skills and available parts & equipment. For example, you could offer repairs and modification services for smart phones (replacing broken screens, jailbreaking, unlocking, recovering data, etc), tablets, gaming consoles, etc. Depending on how much time you’re willing to devote to your business and how much you advertise, this can be a good side job, or you can also turn it into a full time business, even renting out a physical location and hiring staff, etc. It all depends on what you want to accomplish and what your business objectives are.

Tomorrow we will look at some other small business types that you can start right from home and that you can use to earn some extra money online.

Posted in Entrepreneur News, make money onlineComments (0)

Which Changes Will be Brought to Online Marketing in 2012 – Part 1

Tags: , , , , , , , , , , , , , , , , , , ,

Which Changes Will be Brought to Online Marketing in 2012 – Part 1


A new year has arrived and now would be the time to review how you do your online marketing and maybe make some changes for the coming year. It’s important to know that online marketing is an industry where change happens often. This is exactly the reason why online entrepreneurs need to adapt to the changing climate and review their strategies. Many are wondering about how the landscape of online marketing is going to change during this year. It should be known that changes aren’t usually drastic and take a few months to take effect. Here are some things that can be expected to happen during the year:

 

  • Some E-Commerce Sites will Change their Business Models

 

2011 saw the rise of daily deal websites such as Groupon. There have also been many other sites that followed the same business model, some were targeted towards specific geographic areas, while others were centered around a specific line of product or services. The issue with these sites is that many merchants didn’t get the results that they wanted from them. Instead of getting customers that would be loyal and be willing to spend more at their business, they ended up with many freebie and discount seekers, which simply meant a net loss for them. As such, starting a daily deal website in 2012 is not really a good idea.

 

For those interested in promoting savings and deals, a return to more “classic” methods is expected to happen. Websites that would offer both printable and online coupons are expected to get more popularity. Also, websites which offer merchandise by a subscription model, such as book clubs and other sellers of items that consumers buy regularly are expected to grow, due to the fact that they can be quite profitable for the owners and also mean good savings for their subscribers.

 

  • Social Media Marketing Will Rise Up and New Methods Will Become Popular

 

It probably won’t surprise anyone involved in the online marketing and advertising industries that social media marketing will get a lot of attention in 2012. New advertisers are expected to appear on social networking websites, including smaller businesses. Many small business owners, which are looking for targeted advertising options are going to consider advertising on social networking sites such as Facebook in order to get the customers that they need to keep their business running successfully. Another thing that attracts small businesses is that social media advertising can be less expensive than paid search advertising while remaining just as profitable if done correctly.

 

Social networking sites are considering new ad placement strategies, such as including ads in the middle of users news feeds. Also, advertising inside social media apps, such as games, dating plugins and other applications is expected to get some more attention from those who use social media to advertise. With all of this considered, if you don’t currently run social media ads, now would be a nice time to start doing so.

Posted in Entrepreneur News, internet marketingComments (0)

What Draws People to Online Shopping: Part 2

Tags: , , , , , , , , , , , , , , , , , , ,

What Draws People to Online Shopping: Part 2


Yesterday, we’ve seen some examples of what draws people to shop online during the holidays, as well as what you can do to ensure that you profit from these advantages. There are a few more reasons that would make holiday shoppers want to do their shopping online. Here are some more of these advantages of buying online for consumers:

  • Better availability of products

It is a well known fact that the internet is a global marketplace. And it is not called that for no reason. You can purchase any product that you want, even if it would be difficult to get in stores in your area. While international commerce has existed for decades now, ordering something that’s not available in the stores of your area would be quite a hassle before the internet. Now, all that’s required is for the visitor to find what they’re looking for online. To profit from this, a good business model would be selling merchandise that is unique and not too easy to find in stores.

  • Lower prices

One of the big advantages that online businesses have over physical ones is the lower overhead. Running a chain of stores would often require millions of dollars of investment and then a considerable monthly outlay just to keep things running. A store also needs to provide good customer service to their visitors, have their shelves neatly stocked, etc. But to run an e-commerce site, all you need is a location where you’ll be shipping your items out of. If your business is relatively small, this could be run from your home or from a “warehouse” located in your attic or garage. Price conscious consumers are increasingly turning to online shopping during the holidays, mainly because of an abundance of great deals that can be found on a wide range of merchandise on the internet. By making sure that your merchandise is priced lower than what retail stores charge, you will attract those that want to save some money on their holiday shopping.

  • More shipping and delivery options

Again, before the internet, when you ordered something from a catalog or by phone, the only shipping option available was regular shipping, meaning that you had to wait several weeks for your merchandise to arrive. Holiday shoppers obviously don’t have that much time to wait until they receive their order. But with the increased popularity of online shopping came faster shipping options at very affordable prices. Many online shopping websites now offer free standard shipping that takes 3 to 5 days to arrive at the customers door. Expedited shipping options, such as overnight are available as well to anyone who wants to get their order faster. The important thing here is that you give your buyers a good range of shipping options, which would allow them to choose the one that’s right for them. Some people need their order fast and will be willing to pay extra for it, while others can wait a few more days without problems.

Posted in How to, internet marketingComments (0)

Are MLM Opportunities a Good Way to Earn Money?

Tags: , , , , , , , , , , , , , , , , , , ,

Are MLM Opportunities a Good Way to Earn Money?


One question that a lot of people who want to work from home ask is: are MLM opportunities a good way to earn some money on the internet, or are they just overhyped scams? There is no definite answer to this, as some people have built a good income from them, while others hate this form of marketing.

 

MLM, or multi level marketing, is involves independent distributors reselling products of another company. However, a large aspect of MLM is not simply the sale of products, but recruiting others to be part of the business opportunity. But there are a few issues with the industry that some people may not like. This doesn’t mean that the entire industry is a scam or that it is a bad business model. But there are some issues that you should be aware of before you join any such business opportunity. Here are some of the most common problems that you will face in a lot of MLM businesses.

 

  • Low quality, overpriced, or “fad” products

 

Ask yourself this: if the products are so great, how come they aren’t being sold through traditional e-commerce, or at retail stores? You don’t see Coca Cola or Apple running MLM programs now, do you? In a lot of cases, the majority of the money comes from recruiting new participants in the business opportunity. The products are simply there so that the whole thing would not be called a pyramid scheme.

 

A lot of the time, you will see products that are overpriced and can be found for much less than what you need to sell them for to make a profit. Or they are simply “fad” products, such as the latest hype in weight loss or beauty. Of course, it is possible to make money from a fad (think Acai Berry, merchants and affiliates made MILLIONS from it), but if your entire business is based on that, know that you are running a “temporary business” and not something that will be sustainable for years to come.

 

  • Reliance on recruiting friends and family into the business

 

While it is definitely possible to market MLM opportunities online, a lot of companies make people rely on people marketing their offers to friends and family members, telling you that they will be the easiest prospects.

 

But quite honestly, this is really not the case. Most of them will just not be interested in having a business and if they listen to your speeches or presentations, it is only out of politeness or because they don’t want to get into an argument with you if they say no. Now if you push this kind of marketing too far, you will soon be joining the NFL (no, not the National Football League… but rather the No Friends Left club) and will have people avoid talking to you. After all, if you invite someone for dinner, would you really like them to start handing out marketing materials to your family? Probably not.

Posted in make money onlineComments (0)

Using Fiverr to Make Money: Part 1

Tags: , , , , , , , , , , ,

Using Fiverr to Make Money: Part 1


A lot of people have heard about Fiverr.com, which is a type of freelancing website that allows you to do two things: both hiring people to do certain tasks and doing the tasks yourself. You can actually profit from the site both as a buyer and as a seller. But first, let’s take a look at what the site is and how it actually works:

 

All the tasks, called “gigs” cost $5 and you cannot change that amount. So this makes it suitable for relatively short tasks that do not take much time to complete. Now some people wonder how Fiverr makes money from people who use the site. In reality, their business model is very similar to how other freelancing sites function. They take a small commission from the amount that someone gets paid when they do a gig. At Fiverr, that amount is $1. So the buyer pays $5 to have a gig done. The person who provides the service gets $4.

 

Fiverr uses PayPal as their (only) payment system as of right now. The buyer deposits funds and then can buy some gigs. As a seller, you can withdraw funds to your PayPal account when you have earned some money doing gigs. However there is something very important that you need to consider: as a security measure, the amount can only be withdrawn 14 days after the gig has been completed. So you don’t really get paid “instantly” as you need to wait 2 weeks before you can transfer the funds over to your PayPal account.

 

Now, as a seller, what kind of gigs can you provide that will allow you to earn some money?

 

The most popular ones are:

 

  • Article Writing

 

Usually involves writing articles or blog posts that will be used as web content. Very easy to do, all that you have to do is to write an article based on the requirements of the buyer.

 

  • Website Creation

 

You can create a small website that has a few pages for the buyer. Also, there are many buyers that need a landing or squeeze page done in order to market affiliate offers online.

 

  • Social Media Marketing

 

Do you have a Facebook fan page or a Twitter account with thousands of followers? In that case, you can offer to put up a promotional message on your social media page to advertise the website of the buyer.

 

  • Video Creation

 

This usually involves you talking about a product or service that somebody else is promoting online. However there are also plenty of other topics that buyers request videos to be made for. If you like making videos, this could be an interesting gig for you.

 

  • Offline Marketing

 

This simple involves you printing out fliers and then distributing them in a high traffic location. This gig works really well if you live in or near a big city and doesn’t really require a lot of work, it’s just that you need to get out there and distribute those fliers.

Posted in make money onlineComments (0)

Why Create a Membership Site?

Tags: , , , , , , , , , , , ,

Why Create a Membership Site?


When it comes to creating their own products, you can see a lot of online entrepreneurs creating an ebook or a more complete course that comes with videos and several bonuses. Of course, these are all good ideas and can be very profitable. The issue, however, is that if you use this business model, you would only make one sale from each customer and will have no residual income from them. Sure, you can get them on your mailing list and try to sell them some of your other products or promote a new product that you have created to them, but this will require additional marketing efforts on your part. Creating a membership site will eliminate these issues. There are several advantages that creating a membership site has:

 

  • Recurring income

 

Instead of just making a sale once, you will be able to get a monthly fee from your buyers. As long as you update your site on a regular basis and thus provide them with interesting and new content every month, they will stay. In fact, some of them could stay for many years as long as they find your site to be useful for them. This is much better than simply making a “one off” sale.

 

  • Better perceived value from your buyers

 

Many people have seen a lot of ebooks, especially in the internet marketing niche. Plenty of them have bought these ebooks before and have been disappointed with their content. However, there are a lot of buyers out there who see membership sites as more valuable and useful to them than just a course or a guide. This is because the sites often have a collection of tools, several sections of learning material, a discussion forum, etc.

 

  • Increased marketing and money making opportunities

 

With a membership site, as opposed to a stand alone product, you have more opportunities to sell to people, especially once they become members. Sure, having a mailing list can be very good and can make you successful. But the issue here is that plenty of ebook buyers are already on the mailing list of every guru (real or wannabe) in town. They get so many of these emails each day that they might read one or two and ignore the rest. But if they become a member, they will pay a lot more attention to what you have to say.

 

So if you are promoting another product, whether it is an affiliate offer or one that you created, they are a lot more likely to take interest in it. Also, if your methods involve the use of services, like web hosting or online phone services, you can become an affiliate of these and include your affiliate link in the relevant section of your membership site content. This gives you an even greater opportunity to make some money from your buyers.

 

Of course, setting up and managing a membership site will require a bit more work than just selling an ebook. But it is not impossible to do and remember that in terms of profits, it can be a very beneficial activity for you.

Posted in internet marketingComments (0)

Full Time Online Business: Part 3 – What Makes a Good Affiliate Marketer

Tags: , , , , , , , , , , , , , , , , , , ,

Full Time Online Business: Part 3 – What Makes a Good Affiliate Marketer


When looking at full time online business opportunities, many people ask themselves whether affiliate marketing is a good thing to go into. While there is definitely a lot of money to be made in this business, it is not the most simple thing to set up. One of the reasons behind this is that you will have plenty of competitors who are going to be after the same kind of traffic that you are and pushing the exact same types of affiliate offers. So what do you require in order to become a good affiliate marketer and make a profitable business out of it? Here are certain things you will need:

 

  • Patience

 

While some people did make a few thousand in their first months, there is nothing guaranteeing that you will be able to emulate them. Becoming a successful affiliate marketer will take some time. First, you would need to make various efforts to make your business become profitable. Next, you would need to consider the fact that most affiliate programs pay you one month after the end of the current month, so it is not instant money like if you would be selling things on eBay or offering services. If you need to make some money right away, like cash to pay some bills, you can try a different business model for the time being and then move onto affiliate marketing later.

 

  • Money to invest

 

While it is possible to get started here with just a few dollars for a web hosting account, if you want your business to be successful, you will need to invest a lot of money into it. Some of the things that you may need to pay include: hosting, advertising as well as paying other people to do some tasks for you, such as creating landing pages or putting up ads if you don’t want to spend too much time doing these yourself.

 

  • Ability to stay on top of things

 

The world of internet marketing is one that is always changing. As such, there are new offers for you to promote, new networks for you to do business with, new advertising opportunities, etc. that appear regularly. If you want to maximize the amount of profit that your business will be making, then you will also need to spend some time scouting for new opportunities in addition to running your existing campaigns. This will require some good planning and time management on your part.

 

  • Having no fear of failure

 

There are many great methods to make money online, however no one will tell you the exact steps that you will need to take to build a successful affiliate campaign. This is something that you will need to figure out on your own. Along the may, it is very well possible that you will make mistakes. The important thing here is not to be afraid to try new things and to learn from your errors so that you can gain a better understanding of what works and what doesn’t.

Posted in make money onlineComments (0)

Money Making Ideas : Micro Online Business

Tags: , , , , , , , , , , , , , , , , , , ,

Money Making Ideas : Micro Online Business


We have previously seen that there are many different categories of online business objectives. The main difference between them is the amount of money that could be made, as well as the amount of commitment (time and money) that the online entrepreneur will need to make.

Let’s first take a look at the micro online business model. Basically here, you will be making up to $500 a month and putting in 10 to 20 hours a week maximum, with little or no investment on your part.

This business model is basically service based. This essentially means that you will be offering some services to other webmasters, online entrepreneurs as well as business owners. What are some examples of services that you can offer, which will not demand too much time or effort from you? Here is a short list:

  • Article writing
  • Translation
  • Video transcription
  • Graphic design
  • Very basic web design
  • Writing reviews
  • Creating backlinks
  • Doing short online videos
  • etc…

Of course, this is not a complete list, there are many more services that you could offer, based on your skills and the demand that is on the market right now.

The main question is: where do you go to find projects that you can do? The top places are freelancing sites, where people from everywhere gather together to offer or request services. The most useful sites for easy tasks are:

Microworkers – www.microworkers.com

Amazon Mechanical Turk – www.mturk.com

Fiverr – www.fiverr.com

Internet marketing forums also have a section for freelance work. Here are some of the best ones:

Warrior Forum www.warriorforum.com

Digital Point www.digitalpoint.com

Black Hat World www.blackhatworld.com

However, do take note that if you want to find work on forums, you should first spend a few days making USEFUL posts to build up your reputation and get your name seen by the other members.

In these sites, you will find tens of thousands of different tasks that you can do. The pay isn’t especially great, however, if you work in an efficient way without distractions, you can make something approaching $10 to $15 an hour. The tasks could sometimes be quite repetitive and tedious, which is why most people do not spend more than one or two hours working on them per day. But still, you can make a few hundred dollars a month from these sites.

Always strive to do quality work, follow instructions accurately and complete the projects on time. Not only will this help boost your feedback on the sites, but will also allow you to make some useful contacts and potentially earn you some regular projects to do.

Here’s a tip: working with the same people on a regular basis is much better and will make the time you spend online much more productive and efficient. The reason: you will be spending a lot less time hunting for tasks to do and projects you can participate in and much more time actually doing work that will be profitable for you.

Posted in Business opportunity ideasComments (0)

Becoming A Merchant – The Other Side Of CPA – Part 3

Tags: , , , , , , , , , , , , , , , , , , ,

Becoming A Merchant – The Other Side Of CPA – Part 3


If you want to be the owner of your own CPA rebill/trial offer, there is one more thing that you need: a payment processor which will bill the customers. Obviously, anyone who runs any type of e-commerce site needs one. However, the business model behind a rebill offer will require that you put in a lot of effort into selecting a good payment processor. Let me explain:

Most (probably all) payment processing companies and financial institutions in the United States will not want to touch you with a ten yard stick if you run this kind of site. So you can pretty much forget about going to your local bank and asking for a merchant account. They won’t approve you. Or if they do, you will get shut down way before you even get your first check from them. Why is that? After all, what your site is selling is perfectly legal, right? And so is running a membership site that automatically bills the customer after the trial period is done.

Even with that, you will get plenty of fraudulent transactions and chargebacks. Wondering why the fraud rates for these sites are so high? After all, it’s not like you are selling high end electronics or jewelry…

The reality is that free trial sites are often used by fraudsters. But not for the product, which they don’t care about anyways. They use these sites to test if a stolen card is valid and can be used online. Problem is, they of course won’t bother to cancel the trial, since after all, it’s not their card. You then bill the card the regular rate. When the cardholder receives their bill, they then realize that something fishy is going on and report the fraud.

Chargebacks will be another major concern to you. Even though you must put clearly readable text on your site which states that the user will be charged (and the amount) after the (7 day/14 day/etc) trial period and the user should have paid attention to it, you will still get people who don’t cancel and then get surprised when they get billed. Either they weren’t paying attention when they were ordering, or forgot to cancel and now don’t want to pay. What they do next is contact their financial institution and claim that they never authorized the charge coming from your site, resulting in a chargeback.

Due to all these reasons, you need to have what is called a “high risk merchant account.” These are the same types of merchant accounts often used by various online businesses such as adult sites and gambling sites. The merchant accounts are issued by an offshore bank, usually based in a European or Latin American country. You can find plenty of high risk merchant account providers simply by doing a quick Google search. You can also ask for advice on various forums dedicated to online business, or more specifically to payment processing, in order to determine which payment processor is the best to deal with. It is also a great idea to have a backup account issued by a different processor should there be an issue with your main one.

Posted in Business opportunity ideas, Entrepreneur NewsComments (0)


make money onlineSubscribe To Our Latest Updates

Enter your email address to receive our latest articles:

Advertise Here
Advertise Here

Information