February 12th, 2009 admin
If you are trying to start an online business, chances are you have a least thought about selling products online. With the power of the internet today it is easier than ever to procure and distribute goods regionally, nationally and even globally using basic ecommerce models. Discount shipping providers like UPS and FedEx make it easier than ever to create a track global shipments and it can all be done from your home office.
But what about payments? What if you want to accept electronic payments? What if you would like to accept all major credit cards (Visa, Master Card and American Express)? Not all small busniess owners are ready for the often heavy investments of credit card authorization terminals and the fees associated with these services. Where can one turn to for a low cost, no up front investment credit card checkout shopping cart service?
There are two great options available today. Perhaps the largest and most popular is PayPal’s checkout and cart tool. This out of the box provides very simple integration. Users can create “Buy It Now” style buttons for products and/or services that sends customers directly to the checkout after the first product or “Add to Cart” buttons to allow multiple product purchases.
The second option is Google’s new checkout system. Google has recently added great new tools to allow you to add a very impressive and professional shopping cart to almost any site. This one seems to work a bit better with the floating shopping kart that follows you around and shows what you have added so far. The tool works much like PayPal’s in that you can generate BIY buttons or add to cart style buttons.
The other difference to note is the fee structures. While true terminal services credit card authorization services may require a larger up front investment and equipment purchase, their per transaction fees are significantly lower than both PayPal or Google Checkout. PayPal charges 2.9% plus 30 cents per transaction on sales up to $3,000 a month. Google’s fee is 2% of the sale plus 20 cents, less if the merchant is a Google advertiser.
Another recent benefit released via the Google Checkout blog is that merchants who use FedEx can save up to 21% on their shipping costs. Google?s blog post can be read here. PayPal offers a ?Shipping Center? but there are no special incentive shipping rates with carriers, just free USPS and eBay branded boxes for your business.
Posted in Business, Making Money Online, Web Development | 2 Comments »
August 19th, 2008 admin
So you have a great idea for a new business. You thought it through and are sure it will be a success! All you can think of is the incredible success and rewards that this new business venture will bring you. Great! So what now?
One of the most important and yet challenging aspects of starting any business is securing a line of funding. Unless you are lucky enough to have enough cash on hand to fund your business venture you are probably already thinking about how you are going to pay for all of this?
Essentially there are two major options. If your business proposition can muster up enough excitement and promise you might want to get some venture capital investors to partner with you. This is especially popular with larger projects. The large down-side to this option is the fact that you are forced to share potential profits with your partners. In most cases, this can suck up a good portion of you future profits. While not the most popular option, this certainly has it place especially in larger projects that require large amounts of upfront cash.
The second is the more popular option because it puts you in direct control and sole ownership of your new business. This is securing a business loan or line of credit. Even if you are the select few who have disposable income available to invest in a new business, you should think long and hard before sinking your own hard earned cash into an even marginally risky business venture. Many investors who have learned the hard way will offer similar advice in “don’t invest cash that you are not ready to lose”.
Start an LLC or a legal corporation first by filing the appropriate paper work with a local attorney. Once you have a legal entity setup, you can approach bank to secure start up capital for your new business. By following this tried a proven method, you protect your loses in the case your business does not succeed. You can forfeit the business and separate your personal assets from losses.
Choosing the best bank to develop a business partnership can be difficult and extremely time consuming. Anyone who has been through this process will tell you that the more financial institutions you can talk to and research, the better terms and rates you will end up with. Sometimes local banks are best. Sometimes larger national and international chains offer better terms. Ultimately, you need to weigh out all the offerings and compare what is best for your case.
Innovative services like LendingTree.com offer a single source where you can fill out one single application and allow LendingTree solicit their large network of banks to bid on your business for you. They then allow you to compare terms and rates side by side in one place to allow you to make a more informed decision.
In the end, your cash flow will dictate to you how far and how fast you can grow and launch your business. Without good finacing options, even a great business idea can fall by the way side of missed opportunities. Take time to get as much information as possible and make your decisions the right one!
Posted in Business, Making Money Online | 1 Comment »
July 31st, 2008 admin
Did you know that one of the best ways to increase sales for any online or offline business is to offer your customers the convenience of paying by credit card? As a merchant, you have several options available when it comes to becoming part of the credit card acceptance and processing chain. Here’s a quick guide to get you thinking.
Merchant Accounts
If you want your online business to be capable of accepting credit card payments, you must have some type of merchant account. A merchant account allows you to take credit cards as forms of payment in a safe and secure manner.
You apply for a merchant account by filling out an application and signing a fee agreement. Unfortunately, navigating the merchant account maze can be difficult if you do not have financial experience. There are many different companies out there, and they all have a deal to offer. But before you sign up for anything, read the fine print.
The three main fees you need to look for are the set-up fees, the percentage you will pay for each transaction, and the monthly fees. All of these fees need to be taken into consideration. One company may advertise low set up fees, but they may take a higher percentage of the sale or the monthly fees may be considerably higher.
There are two types of merchant accounts, your own personal merchant account or a third party merchant account. A bank will open your own account and although they may have higher initial opening costs, these accounts generally have a lower transaction fee (what you pay them for each transaction).
Deciding which of these two types will work best for you is a personal decision, but if your business is established and thriving, the bank-based merchant account will probably work best.
Third Party Merchant Account Providers
There are a large number of providers out there, all offering what is sure to be the best deal ever. Let’s evaluate some of the top providers and see what it is they really offer.
ElectronicTransfer.com offers instant acceptance for new merchants and has a $49 setup fee, a FREE shopping cart system and an average transaction fee. The account offers a built-in shopping cart and accepts one-time or recurring payments. They accept both physical and digital goods merchants. Accept Credit Cards – Free Credit Card Processing Set Up
ClickBank offers a one-time setup fee along with a transaction fee of $1.00 plus 7.5% of the sale price. There is no monthly fee. They will also handle tracking and paying your affiliates automatically. They only accept merchants selling digital goods.
PayPal has no setup fee and a sliding transaction fee, all of them very low, based upon sales volume. They accept both physical and digital goods merchants and have various methods for you to tightly integrate their interface with your site. Subscriptions and one-time payments can be processed.
This is just a general overview of some of your payment options. Before you decide, do some in depth research and find the account that will work best with your company’s needs.
Posted in Making Money Online, Web Development | 7 Comments »
