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Jamo
Forums Member
Joined: 17 Feb 2009
Posts: 1
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#1 · Posted: 17 Feb 2009 07:15
Hey All,
I am working towards starting in this business. I have been mulling over it for a while, but life interrupted my plans but I am slowly getting back on track.
One of the re-occurring questions that I have about this program is the payment portion. Looking at sites that are up and running, it looks like credit cards are accepted but discouraged. In my opinion, most people would like to pay via credit card when making the purchase online. From a safety point of view, that makes sense to me.
However, over time I have read different reports on having GRN process the credit cards for you. I've heard that they charge a $300 fee, or a $500 fee. This to me is highway robbery! Ultimately this business model is nothing more than affiliate marketing (granted with some fantastic commissions). How can they legally charge you this fee when you are providing sales to them?
Also, if there is no way to get around the fee, is the full fee charged to you or is it spread between the two different commissions?
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hsimpsonjr
Joined: 16 Dec 2006
Posts: 612
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#2 · Posted: 24 Feb 2009 13:05
Jamo,
the fee has been dropped down to about what it would cost you per transaction if you had your own merchant account to take credit cards yourself. I used to have one and going through a chargeback is NO fun. I think the fee is about $175 or something like that now which is about what you would pay for Merchant account transaction of your own. I don't know if the fee is taken from both commissions. I'll find out and let you know.
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hsimpsonjr
Joined: 16 Dec 2006
Posts: 612
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#3 · Posted: 24 Feb 2009 15:02 · Edited by: hsimpsonjr
I just got an email from support and they said that the fee is split evenly between all who are involved. for a $1000 commission the fee is $300 split between the two people being paid makes it $150. For the $500 commission it would be a $150 fee or $75 per member. If this is a qualifer sale, the member would earn half the commission and pay half the fee. These are not really high fees when you count how much you pay per month for a Merchant account and how much of a percentage you pay out of each sale.
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bestbusiness
Forums Member
Joined: 31 Jan 2009
Posts: 12
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#4 · Posted: 25 Feb 2009 23:44
Jamo,
I agree that the $300 fee is highway robbery. It is way too high and I hope they lower it soon. Your own merchant account is much more cost effective and costs about $75 per transaction, but has disadvantages too. However, that is the only negative thing that I have found with GRN. Everything else - commissions, value, customer service, etc. have been terrific. So instead of $1000 commission, you get $850. Still very good. Especially when you get the $850 from someone way down in depth and did none of the work or advertising for it. I would recommend GRN wholeheartedly, especially if you have a good online sales process or system.
All the best,
Blair
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hsimpsonjr
Joined: 16 Dec 2006
Posts: 612
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#5 · Posted: 26 Feb 2009 16:12
One other thing is that if there is a chargeback, GRN takes the hit. Not the GRN member. I agree, having your own account is great if you have a reserve to cover chargebacks but if you don't, and most people don't, dealing with the fees is an acceptable sacrifice, In my opinion.
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swood01
Forums Member
Joined: 11 Jun 2009
Posts: 8
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#6 · Posted: 10 Nov 2009 13:14
This is an eye-opener for someone like me who is thinking about joining GRN so it really pays to be a member of these forums and read about opportunities before jumping in! I am not saying I will not join GRN but I am glad to learn all I can before making that move.
Thanks,
Steve
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Wanderlust
Forums Member
Joined: 15 Jan 2008
Posts: 47
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#7 · Posted: 20 Nov 2009 21:00
I totally agree with you Steve that it is vital to do proper due diligence before joining any business. In GRN, IMHO the due dilligence is 25% about the company/product and 75% about the person you're joining to find out whether you're a good match together and whether he'll really assist you in building your business.
All the best,
Payman.
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