Sound like a bad idea?

[Frosty]

Here`s a reject question: (don`t laugh)

I`m a reseller right now and am about to offer my customers a reseller program so that they can become resellers for me. I make 15 bucks per month if someone signs up to be a reseller for me..... but i only make 50 cents for each customer my reseller would get.

Does that sound like a bad idea? I want to offer my resellers a nice big discount, but in order to do that i would only make 50 cents for each account my reseller would get. (because i just got a merchant account and the transactions fees suck).

Is it always 2.29% plus 30 cents for visa?

And is it always 3.50% per transaction for american express?



:confused: :shake:

[Locu]

Frosty - First, there are no stupid questions, only stupid answers! ;) So I pray my answer isn't too bad!

Sounds like you need a better plan. If your going to be reselling you should be making more than $0.50. How many customers are you referring, and how many to you expect them to refer? Why not instead of selling somebody elses product, make your own. Colocated/Managed Servers are cheap nowdays, you could put your own server online, and make your own prices, keeping the customers yourself and all around making more money.

Just my thoughts.. and I'm new to the group (1st post).

[Jaiem]

$.50 is low, but considering that you have to pay the reseller something and the cost of running the reseller's customer's sites, it's possible the profit per reseller customer will be very low.