Credit card debt rises 315%

[RawAlex]

http://www.cnn.com/2008/LIVING/perso...ity/index.html

This is possibly one of the biggest warning signs for the online industry. Credit card debt is mounting, and looking like it is going to be the next frontier of defaults. This means that more potential customers are running their cards to the max, and therefore we are more likely to see declines for sales, renewals, and such.

I also wouldn't be shocked to see credit card companies try to weasel out of paying stuff by charging back any non-hard good purchases in the 3 or 4 months before a card defaults. That would be a very good way for them to lower their exposure.

[MRock]

Could be gettin scary!

[Rcourt64]

Shit i never thought of this? ...fucking credit card interest are gonna go up now man... This sucks.


...Brings a question to mind here? Since I don't mess in movies.
Allot of sponsors & webmasters are hooked on this 30-day rebill method of generating profit.
And I wonder why movie sponsors aren't like allot of cam sites?
Many "not all" have a cut off limit, so overdrafts like this don't occur.
Members reach a limit of spending and then they're CC is cut off either for a designated time period, or a contact approval.

Remember that pleasurable habits are like pacifiers, ...And ya don't wanna let go, baby.
So Sponsor "like webmasters" don't let go either, and bleed customer to death if possible.





Yup, thats my story, and I'm stickin with it,Yes sirr'e

[tony404]

Wait there are people on here who will tell you, our industry is recession proof. lol

[Hell Puppy]

Originally Posted by tony404

Wait there are people on here who will tell you, our industry is recession proof. lol

Is the recession impacting your numbers?

I've been doing online subscriptions for adult oriented material in one form or another since 1987, I've never seen the economy cause a significant dip.

Right now I'm not sure I'd call this a recession yet. We are on course for one, and whomever is elected President this November will have their hands full with the economy as soon as they enter office. How they react and the confidence it inspires, or the lack thereof, will dictate how bad it really gets.

But I think we have to get to early 1970's level of bad before the recession alone should run anyone out of this business. But we do have plenty of other challenges to deal with and anything that draws attention to credit card statements is potentially bad. Billing is, and always will be, our achilles heel.

[tony404]

Originally Posted by Hell Puppy

Is the recession impacting your numbers?

I've been doing online subscriptions for adult oriented material in one form or another since 1987, I've never seen the economy cause a significant dip.

Right now I'm not sure I'd call this a recession yet. We are on course for one, and whomever is elected President this November will have their hands full with the economy as soon as they enter office. How they react and the confidence it inspires, or the lack thereof, will dictate how bad it really gets.

But I think we have to get to early 1970's level of bad before the recession alone should run anyone out of this business. But we do have plenty of other challenges to deal with and anything that draws attention to credit card statements is potentially bad. Billing is, and always will be, our achilles heel.

Yes I have seen a difference, I track all my numbers and traffic. Its off not the end of the world but off.

[gonzo]

Originally Posted by Rcourt64

Shit i never thought of this? ...fucking credit card interest are gonna go up now man... This sucks.


...Brings a question to mind here? Since I don't mess in movies.
Allot of sponsors & webmasters are hooked on this 30-day rebill method of generating profit.
And I wonder why movie sponsors aren't like allot of cam sites?
Many "not all" have a cut off limit, so overdrafts like this don't occur.
Members reach a limit of spending and then they're CC is cut off either for a designated time period, or a contact approval.

Remember that pleasurable habits are like pacifiers, ...And ya don't wanna let go, baby.
So Sponsor "like webmasters" don't let go either, and bleed customer to death if possible.





Yup, thats my story, and I'm stickin with it,Yes sirr'e

Its been proven that consumers prefer to pay as they go.
I sure would hate to be a large program buying up smaller ones relying on my profit margin to come from the "forgotten rebill."

Raise that interest charge some more and you will see how many people come alive to cancel that shit.

[RawAlex]

Originally Posted by gonzo

Its been proven that consumers prefer to pay as they go.
I sure would hate to be a large program buying up smaller ones relying on my profit margin to come from the "forgotten rebill."

Raise that interest charge some more and you will see how many people come alive to cancel that shit.

There are a few companies that have been buying up others (Dee as an example) and they may be walking right into one of the worst potential marketplaces. As more CCs go to default, more rebills are lost, and the numbers that purchase prices were based on all go to hell.

Unless they have a very specific plan that will significantly increase initial sales, they may find themselves getting squeezed. Sort of like Penthouse buying AFF - did they pay top dollar for something that is about to hit a wall?

EJ, European sales have been better, and apparently CCBill has added more processing power in Europe in the last few days. But it is a more fickle and more expensive market to sell to, because you have so many languages and such in such a small area. The programs with language sensitive tours will likely do much better there, considering the sales pitch will be more attractive.

[EmporerEJ]

Originally Posted by RawAlex

EJ, European sales have been better, and apparently CCBill has added more processing power in Europe in the last few days. But it is a more fickle and more expensive market to sell to, because you have so many languages and such in such a small area. The programs with language sensitive tours will likely do much better there, considering the sales pitch will be more attractive.

Fortunately, we are not forced to A: Rely on a 3rd party processor, or B: Have any real competition in our market space.

We only have an English version of our website. I would have liked to have a foreign language version, but can't find anyone reasonable/reliable to do so.

[EmporerEJ]

Originally Posted by RawAlex

http://www.cnn.com/2008/LIVING/perso...ity/index.html

This is possibly one of the biggest warning signs for the online industry. Credit card debt is mounting, and looking like it is going to be the next frontier of defaults. This means that more potential customers are running their cards to the max, and therefore we are more likely to see declines for sales, renewals, and such.

.

Remember about a door closing, and a window opening up?
Well, how about a positive spin? With our product, which is a "substantial" purchase, we are seeing more European orders. Why?
The Euro is worth 1.50 on the US dollar.
So, our product is , like, on a 50% sale overseas.