####################################################
>From Chris Kilian, Stealth Promotions
Austin, Texas
Email: chris@stealthpromotions.com
Welcome to the 52nd Issue of Secrets for Success.
November 3rd, 1999
This is a 100% opt-in newsletter delivered to
webmasters, marketers, and others seeking online
success. Your email address is protected and we
will NEVER share your information with anyone.
Promise.
Here is what we have for you this week.
####################################################
Contents:
1. Editor Ramblings: Subscriber roundup
2. Guest Article: LET'S DO THE MATH!
3. Useful Sites: Online Gold Mines.
4. Worthy Newsletters: Add yourself as a subscriber
5. Surfing News: Another one bits the dust
6. Great offers for you from our advertisers
7. Guest Article:
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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A big happy tip of the hat to Bill Burdin over there at
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banners are shown on a network of free classified sites
that joined my little family of 348 sites in just the first
year. Those sites already provide links to Free Report
Network, Internet Marketing Course, autoresponders, guestbooks
and, NOW I can count on them to help me recruit new members
to AllAdvantage. This is still one of the best deals online.
If you have the money, investigate growing your own banner
network for this next year. http://stealthpromotions.com/af/le.htm
We are up to only about 17 pages being indexed in the "Top 100
FUN Pages" index, http://stealthpromotions.com/autorank/autorank.html
If you create pages like that, we invite you again to submit your
pages. Some of the pages there are quite good, but we need more.
It's funny how sometimes several things seem to happen at once
which will call our attention to a place where it's needed. I've
received correspondence - and read comments - recently that
turned my attention to some of the online payment processing
companies.
I decided to take a look at what's going on here and couldn't
help but be appalled. I'm always appalled when I find unfair
advantage being taken of those who are trying their darndest just
to run their businesses in a professional manner.
Here's the saddest part of all. Our colleagues from countries
outside the USA and Canada are practically forced to use these
services. They face special challenges in paying and charging
their own fees through North American companies.
Let's take a look at how some of these payment processing
companies are operating. I don't want to name names here (I'll
save that for the website) but we might as well go with the
details of one of the best known ones. We'll just call them "The
Service."
First of all, I was informed that The Service "only" charges 7.5%
to process online payments. Now, this isn't what it says at
their web site - but it IS what people seem to see. The truth is
that they charge 7.5% PLUS $1.00 per transaction!
In fact, everyone was excited when they reduced the percentage
from 10% to 7.5% - but did anyone notice that they also raised
the transaction fee from 50 cents to $1.00? Who do you think is
making out on THAT deal? The customer? Not bloody likely!
Let's do the math! We'll keep it simple and just work in round
numbers of 10.
If your customer is paying you $10 for a service or product, you
will pay The Service 75 cents (7.5%) PLUS $1.00. Total $1.75 -
or 17.5%!!! And that's UP from the price "reduction." Before,
it would have only cost you $1.50 (15%)! Well, PLUS the
additional costs I'll mention below.
If your service/product costs $20 - you'll pay 12.5%. In fact,
your product would have to sell for $1,000 before you would even
come CLOSE to only paying 7.5%. My only point here is - pay
attention to the full payment when calculating your cost!
Okay - now here's where you start being taken advantage of. 10%
of each check that should be paid to you by The Service will be
deducted and held for 90 days before it's ever paid to you!
Their explanation is that it's to cover any potential charge
backs or returns.
Again - let's do the math! And again, we'll keep it simple.
Let's say that you had 20 sales of $30 apiece. Total sales -
$600. All of your 7.5% ($45) PLUS your $20 in transaction fees
have been deducted. Total deduction - $65. You are now owed
$535 by The Service. But, WAIT!
First, they are going to deduct another $53.50 to put in the
charge-back fund for 90 days. You will actually receive $481.50
- or less the amount of 18 of your actual 20 sales!
You might think that's okay. After all, you'll get the money in
90 days. Before you think like that, let's take a look at a
couple of more facts.
Remember, they took $53.50 to hold back for refunds and
cancellations. That's 9% of your actual $600 worth of sales.
Almost 10% of your 20 sales. Do almost 10% of your customers ask
for their money back? Are one out of every ten of your sales
returned? I doubt it! This hold-back percentage is unrealistic
- and unreasonable!
Of course, this wouldn't be the case if you have one sale for
$600. BUT - let's BE realistic. How much ARE your single
sales? And, how different are your sales from the majority of
online businesses? What is the HUGE majority doing? Lots of
small sales or a few big ones? Believe me, The Service knows!
And, why are they taking more than they need? Undoubtedly to
cover their butts for those who quit on them - then have
charge-backs later. The money must be on hand and they won't
hesitate to use yours in the interim. It isn't the practice of
lending institutions to use their own money.
PLUS! What's happening to this (unrealistic) amount of YOUR
money that they're holding for 90 days? Do you think it's just
lying around in a checking account someplace, waiting to be
returned to you? Guess again!
That money is being used to make additional income for The
Service! Remember, you're not their only customer. Your $53.50
is multiplied thousands of times by thousands of other customers
- every month! More money is being earned on that money! And,
not by you!
Which brings us to the next question. Where's yours? Is The
Service going to pay YOU to use YOUR money for 90 days? Are they
going to share what they make on that money with you? Are they
even going to pay you interest on that money? In your dreams!
Now, let's add insult to injury! You are also going to pay The
Service $2.50 for every payment The Service makes to you to pay
you YOUR money! "Accounting fee," they call it.
This is in addition to what they're earning on your percentage
payment - your transaction fees - AND the use of your money FREE
for 90 days to make themselves MORE money - which they are NOT
sharing with you!
Surely, I don't even need to say any more about that outrageous
little practice! Not to mention that you can add that $2.50 to
your costs which further raises the percentage you're paying!
Of course, you might rationalize that you'll make all this back
by joining their affiliate program. That's what they WANT you to
think - and this is one of the things that irks me more than any
other. It's used as justification for gouging people with
ridiculously high costs.
RARELY does anyone ever make it all back! And, why should you
have to MAKE your money back to balance out your costs? What
kind of nonsense is that? Don't you - first and foremost - have
your own business to run?
Now, even after everything I've already shown you - they are
still going to nail you ONE MORE TIME.
Remember that 90 day hold-back period for 10% of each payment
they make to you? Well, guess what's going to happen at the end
of that 90 days? They are ALSO going to hold back ANOTHER 10% on
the money they've been holding!!!
In the interests of brevity, I'll simply show you portions of an
email exchange between The Service and one of our MONDAY MEMO!
subscribers. Brace yourself.
------------
Hi,
At the end of the period ended 8/1/99 you released a reserve of
$836.49 from period ended 5/1/99. However, you then held on to
10% of that reserve as a further reserve. Could you explain why
this was done as I understood that the reserve for any period was
repaid in full at the end of a 6 period [sic. 90 day] term. At
this rate you will never pay all the money held on this account
as you will always be deducting 10%.
Their reply:
If we were to do it the other way, then we'd need everyone to
have two separate balances. One balance would be subject to the
reserve (profit from sales), and the other would be money not
subject to the reserve (released funds). We thought this would
be way too confusing for most people to deal with. The way the
math works out, the amount that is "re-reserved" is actually well
under 1% of your sales volume from that prior sales period.
Thank you.
------------
Oh! I get it! They don't want to confuse us! "Thank you" is
the LEAST they could say! How about, "May we kiss your feet for
supplying us with never-ending portions of YOUR money so we can
use it to make MORE money - which we are NEVER going to share
with you?"
Please note that this customer's question was never answered!
The "Why?" question! All he got was a whiny response that it was
ONLY 1% of his gross sales that they were planning to keep
indefinitely.
If you can figure out what the rest of it means, please do let me
know. The only thing that's confusing here is the way they make
SURE a customer will never know what the heck they're doing with
his money.
In this specific case it was another $83.65 they were refusing to
return to him - even after holding $836.49 for 90 days! Multiply
that out by their thousands of customers! Seems to me that a
logo featuring an eye patch and a wooden leg would be appropriate
for their homepage.
Do they have a right to do this? I went to their "Terms and
Conditions" to find out. Being an old hand at reading legal
documents, I suspected that I would find it buried somewhere in
the fine print.
Wrong! The line that gives The Service the right to do this to
you is right there in plain sight. I even missed it the first
time. Please read it CAREFULLY!
"You understand that the Company reserves the right to delay,
suspend, or refuse payment of any portion of your [xxxxxxxxx]
account balance at any time."
Yep - There it is folks! That sound you hear is the Click! of
your teeth being placed in a cup at night before you are ever
paid - all YOUR money!
Now, I realize that The Service is licensed to do all this.
(Although, I haven't figured out yet why their address should be
in one State if they are licensed in another.) They have the
full cooperation of one or more governments to take advantage of
you like this.
These kinds of services are needed - especially by our colleagues
outside the USA. And, my little article isn't even going to slow
the big guys down in their race to take outrageous advantage of
the businesses who need them. But, they can only do it if you
let them.
I simply offer this to you for your consideration. Before you
hire an outsourcing company for your online payment acceptance -
do the MATH!
jl scott, ph.d., Author
(C) 1999, All Rights Reserved
This article may be reprinted with permission by including the
following resource box:
----------------------------------------------------------------
dr. jl scott is the publisher of MONDAY MEMO! - the ezine
dedicated to Professionalism on the Web. For FREE subscription: mailto:subscribe@MondayMemo.org. Be sure to
read jl's new e-book,
"Kickin Butt & Takin' Names!" http://MondayMemo.org/e-book.htm
----------------------------------------------------------------
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5.#################################################
Surfing for pay this week:
New to me this week:
http://www.Making-cash.com That is all I
can tell you about
them. Their name. Why? Because they have no further information
posted. How do they pay? What? When? How do you earn cash?
Too many open questions without answers for me.
I know nothing good or bad about making-cash.com, but here is
a question. If I were dishonest, and I wanted to access YOUR
account for all the twenty something programs out already, but
I was too lazy or incompetent to hack the program website, how
could I get you to just give me the information? Easy. I set
up my own "surf/get paid" site, and have you provide information
which includes your information and your nickname/password.
With just that information, I can now go to your other programs
and try to log in using the same information. Maybe I change
the delivery information for the checks. Maybe I just cancel
your account cause I am sore that I didn't get in while the
"getting was good" assuming you can't see there is plenty of
good to be got at this time. Again, I do not know anything
about making-cash.com, and I am NOT accusing them of anything.
I am just making a point that as more of these programs pop up,
and they will, be careful before you jump in with both feet...
unless I tell you to do so. ;-)
My own AA numbers took a jump this week because of something
any of you could do. I found a partner. I converted a fellow
webmaster, with whom I had previously traded emails, into an
AllAdvantage member under me. He added 88 members to his
downline and mine in one day. Great return for zero dollars
spent and zero promises made. Are you overlooking any online
assets, online friendships, fellow webmasters that you could
talk to about AllAdvantage or any of the other programs? If
so, make an attempt to correct that this week, and you could
be happier by this time next week. AllAdvantage is now up to
about 3.5 Million users, but that is just a little drop in the
sea of opportunity folks. There is plenty of room for you too.
A small little financial newspaper this week did an a
story on adstream's potential. You may have heard of it,
the Wall Street Journal. Their assessment, which was balanced
included AllAdvantage, GoToWorld, and potential problems with
being tracked as you surf and get paid while online, sort of
the Good, the Bad and the Ugly. They are listening offline,
and many of them will be online soon, especially as all those
new cheap computers pop out of Christmas boxes all around the
world. Are you going to be catching the wave with me and others
or watching this wave go by? Your choice, but I hope you join
us.
PrizeWindow has released its ad-delivery software, and I have
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intend to use several programs at once, and it requires refreshing
every once in a while to be sure you are there surfing.
Ignifuge, who is paying you just to use them for a start page,
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Spedia continues a slow decline towards the surf/get paid dog
house. Move over GoToWorld, you have company, just wake up
HitMaster. There is always plenty of room at the bottom in any
group.
6.#################################################
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Designing a great website is only the first step towards
creating a successful web presence. In order to succeed,
you must develop a steady stream of traffic to your site.
The first and most important step is getting your website
listed in the search engines. Keeping your website ranked
in the top 30 positions is a never ending battle and
shouldn't be solely relied upon for developing traffic.
If you've been on the Internet for a while you've probably
subscribed to a few ezines (newsletters). Most ezines
will include a feature article written by the editor or a
guest author. If you've ever read an article written by a
guest author then you've probably noticed, at the end of
the article, a few lines of text about the author, referred
to as "bylines" or "resource box."
The writer gives the publisher permission to publish their
article free of charge in exchange for the publisher
including the author's bylines. The bylines are basically
just an advertisement for the writer. They usually contain
a couple of lines about the author and a web address.
By writing articles and allowing them to be published free
of charge, your articles will have the potential to be
viewed by millions of Internet users. They may be
published by several ezines with subscriber bases of a
few hundred to several thousand. In addition, they may
be displayed in ezine archives or on high traffic websites.
Most ezine publishers prefer short articles between 500
and 750 words. Short "tip" articles of just a couple of
paragraphs are also very popular. Articles should be
formatted to 65 characters per line or less including
spaces and written in short paragraph sections.
When you begin writing your article, avoid using your
standard word processing programs, as they do not allow
for proper formatting. Instead, use a text editor such
as NotePad. It should already be installed on your desktop.
When you begin typing your article, use a hard carriage
return (hit enter) when your text reaches 65 characters,
including spaces, and leave a space between your
paragraphs. This will enable the publisher to easily
copy and paste your article into their publication and
significantly increase your chances of being published.
Most publishers receive many article submissions each
week and only select a few to be published. Here are
some basic guidelines to help you increase your chances
of being published:
- Your article must be properly formatted. Publishers
won't take the time to format your article,
they'll
simply use another article that is properly
formatted
- Keep your bylines down to 6 lines or less
- Select a descriptive title to intrigue your readers
- Use proper grammar and spelling
- Avoid articles that are nothing more than a sales
pitch, as your chances of being published will
be
minimal
- Avoid referring readers to an affiliate URL as this
will make your article appear to be biased and
untrustworthy
- Write your articles with a sincere desire to teach
and inform. Talk to your readers and share your
expertise
Once you've written your article, you'll need to develop a
list of publishers that may be interested in publishing it.
Visit the following site to help you locate ezine publishers:
http://www.meer.net/~johnl/e-zine-list/
Search through the database for publications that may
be interested in the type of article you've written.
Contact the publisher and ask them if they accept
article submissions.
Here are some additional promotional resources to help
you get published:
Writing and distributing free articles on the Internet
will be one of the best promotional decisions you'll
ever make. Not only will it provide you with free
publicity, but if your articles are good, you'll become
a trusted professional in your area of expertise.
-----------------------------
Shelley Lowery is the publisher of Article Announce:
A Writer & Publisher Exchange & Marketing Adzine:
Marketing, Advertising & Promotional Solutions for
the Netrepreneur. Visit her site to subscribe.
Web-source.net - A Webmasters Resource Directory.
http://www.web-source.net
Increase traffic and earn money with this suggestion
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Trade links with us at
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Build more traffic to your site with a free
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Easy set up when you click "apply for classifieds"
Thanks to those 342 sites in our banner family.
We love ya.
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Thanks to Oaknet Publishing who helps deliver
this newsletter. If you would like some help with
your ezine, get more details at
http://www.oaknetpublishing.com/services/welcome.cgi?181
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Make suggestions, give us comments, good or bad.
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All contents Copyright (c) 1999 Stealth Promotions,
except where indicated otherwise. All rights reserved
worldwide. Reprint only with express permission from
copyright holder(s). All trademarks are property of
their respective owners. All contents provided as is.
No express or implied income claims made herein --
your business success is always dependent on many
factors, including your own abilities and efforts.
Advertisers are solely responsible for ad contents
and publisher accepts no liability for direct or
consequential damages.
Find back issues of this newsletter at
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Visit our Article Library at
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Contact Information:
Chris Kilian, webmaster
Stealth Promotions
http://stealthpromotions.com/
Editor,
Secrets for Success Ezine
PMB C-1173
701 Capital of Texas South
Austin, Texas 78746
Phone: 1-512-330-0404
Fax: 1-512-328-8323
chris@stealthpromotions.com
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