So…. How do I get the money?

March 5, 2009

Making money with an internet marketing focused business can, and often does look very daunting from the outside looking in.

Afterall, that’s obviously why you’re looking for more information about online business in the first place.

My favorite strategy for attacking that kind of problem is a very simple one: Break it down into smaller chunks and attack them one by one, eliminating any ‘blockage’ in the ‘flow’… I know- GROUNDBREAKING isn’t it? Well, a little Daoist anyway.

So in that vein, I want to start attacking all of these common ‘blockages’ one at a time until there is nothing impeding the ‘flow’ of cash through your online endeavour and into your wallet.

The first blockage I would like to cover and ultimately remove is a small one. Almost triffling. In fact, many businesses view it as almost an afterthought. This is a mistake you see, more than anything else, this one gravely important aspect of your business determines how, when and in what amount you get paid.

Pretty important huh?

When most of us start coming up with ideas about online business, we tend to think along familiar lines:

Product

Idea

Design

Marketing

Affiliates

Delivery (physical or digital)

and thse are all very very important, no doubt. But isn’t “How exactly am I going to be getting the money?” just as important?

The name for this is Merchanting. This determines who will charge customers’ credit cards, and how/when the money will be paid out to you.

Now if you plan to stick strictly to affiliate marketing, your only concern will be to find and work only with companies that you can trust to pay you honestly and on time. (whole different topic for another issue)

But if you plan to market or sell anything of your own, how will you get the money?

“Well isn’t that what paypal™ is for?” Well yes and no.

Let me ask you a question: Have you ever done a small favor for a friend that they offered to compensate you for? You know, helped them move, or gave them a ride to the airport in exchange for $20 in gas money; something like that? But then, once the favor had been done, they didn’t seem to have the cash on them (even though you agreed on all this ahead of time)?

So now, what should have been an easy and straight-forward transaction between friends becomes kind of a headache… and it’s a little awkard next time you see them, because they still owe you some money, and you still haven’t gotten any of it.

Now imagine that friend owes you 5 grand…for 6 months.

That’s my relationship with paypal™. You see, someone in Paypal’s “powers that be” divison decided that there was something suspicious about my account ‘activity'(the amount of money coming in in the form of payments to me) So to be safe, they froze my account for 180 days while they completed an investigation. Believe me, there is nothing more frustrating than not being paid what you’re owed for honest work… on the whim of some faceless corporation. (After some time, the matter was eventually straightened out. I was cleared and the money was released to my bank account where it belongs)

But, you can’t blame paypal. Without going into legal details, the reality is, every time they process a transaction for you, they are putting THEIR reputation on the line, both to the public and to the banks that let them transact business. In a sense, paypal is letting you use their merchant account and their name and reputation to help you run your business. And they have great consumer protections in place (which is why  I gladly still use them to BUY things)

But when you have your own merchant account, it’s your reputation on the line with the bank. This is often a far superior solution to small but growing businesses. In the early stages of any business, your volume WILL fluctuate (hopefully in your favor more than not), but with you being in control of your own merchanting, you know that at least this ONE portion of your business will be within your control. So for anyone serious about promoting anything of their own online, private merchant accounts are a must have. And here at Sterling Business Group, they are something we provide to every client to make sure they have that added level of protection in their own business.

Now I’m not going to pretend to be a finance expert, but to learn more about merchant accounts and how they might benefit your business, I suggest you do more research Here

TheSterlingGuy

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