mdude85 wrote:
For Shutterstock to make $176,000 off individual 1-cent charges, they would need to charge 17.6 million subscribers, but they only have about 180,000 active photographers, so the most they could probably make from 1-cent charges is $1800.
And that's BEFORE the credit card company's charges. They are most likely LOSING somewhere between $.25 and $.50 a transaction.
I doubt they are losing money, but my guess is that they are not making any money at all. The typical charge percentage for merchants is around 2-3%, so it would not make any sense that they would lose $.25-.50 on a $.01 charge. Maybe there is a special annual fee for those $.01 verification charges, since they are quite common these days.
mdude85 wrote:
I doubt they are losing money, but my guess is that they are not making any money at all. The typical charge percentage for merchants is around 2-3%, so it would not make any sense that they would lose $.25-.50 on a $.01 charge. Maybe there is a special annual fee for those $.01 verification charges, since they are quite common these days.
Many vendors get charged $.25-.50 per transaction, plus the 2-3% charge (these are always negotiated). This is why you often see smaller operations refuse to take credit cards for transactions of less than $10-$15. A $.50 + 3% charge on a $10 bill could easily eat up more than your profit margin.
pamkel wrote:
Oh, my gosh. I have terrible math don't I?? My apologies. OK, help me out with this one since I have such a problem with zeros.
40,000 photographers belong to a image hosting service.
If the cheapest monthly package is $30.00 how much are they taking in monthly and (since I'm bad with zeros) yearly?
How is this relevant to your prior mistatement/lie about their service?
