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Do Online Businesses Need Debt-Collectors?

Discussion in 'General Business' started by WalletMentor, Apr 2, 2014.

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  1. #1
    I was going through my emails this morning, and came across a ton of emails, due to being the new quarter, for subscription notices that were coming due, which got me thinking about how do new/smaller business that have services/products based primarily online manage their customers who don't pay?

    From what I have seen, it's mostly a light/electric bill method: you don't pay, you get cut off.
    However, wanted to see if any DP members could share their experiences if they manage any collection practices for their sites.
     
    WalletMentor, Apr 2, 2014 IP
  2. Aff_Fan

    Aff_Fan Member

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    #2
    Yes, it's easy - you don't pay, you get cut off.
    If you want to get paid, just offer a best services and best prices.
    Also don't forget about discounts and sales.
    And forget about online (or off-line) dept-collectors - it's not real)
     
    Aff_Fan, Apr 2, 2014 IP
  3. dedideals

    dedideals Member

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    #3
    In the hosting industry I think it would be useful to have something for non payers
     
    dedideals, Apr 2, 2014 IP
  4. Aff_Fan

    Aff_Fan Member

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    #4
    I think that pre-paid hosting plans is much better than post-paid.
     
    Aff_Fan, Apr 2, 2014 IP
  5. WalletMentor

    WalletMentor Member

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    #5
    Is this a common problem for hosting services?
     
    WalletMentor, Apr 2, 2014 IP
  6. dedideals

    dedideals Member

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    #6
    Past experience working in hosting companies, owning several I would say yes a very big one. There are often hosts complaining of it, people think because it is online it does not matter.

    So if something was there for hosts to most likely get their money, that would be worth paying for
     
    dedideals, Apr 2, 2014 IP
  7. dedideals

    dedideals Member

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    #7
    You can say so yes however, long term business models would work better with regular monthly income, if people pay every year you need to wait and get signups constant all year round big ones, to make a good wage
     
    dedideals, Apr 2, 2014 IP
  8. iodalg

    iodalg Well-Known Member

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    #8
    Now that is a great idea! Of course not feasible...
     
    iodalg, Apr 5, 2014 IP
  9. Foxxy

    Foxxy Active Member

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    #9
    The biggest problem I have seen in the past is credit card chargebacks. The credit card company nearly always sides with the consumer, regardless of how much documentation (copy of id, signed authorization letter, etc) the merchant may have. In every case I have ever seen, the merchant closed the users account and just washed their hands of the loss. Performing collections on these accounts could be very lucrative, or it could also be a huge waste of your time -- not sure which.
     
    Foxxy, Apr 5, 2014 IP