CentroBill

Comments

• [Deleted User]

  May 2016

  Mika , sure, it does. We are looking forward to your feedback as usual 
• Natalie

  May 2016

  I wonder if we should invite CentroBill guys to participate in this forum (and if they'll find time). I'll take charge on passing any and all info over to them, I guess, if they can't dedicate the resources.
• Empress Mika

  May 2016

  Thank you @sashagreen and @natalie ^_^

  So, here's the thing! As we confirmed in the Models.xxx thread, models cover 10% of the billing costs. We also confirmed that ModelCentro also covers 10% of the billing costs. In other words, Modelcentro receives 22.5% of their 32.5% cut and models receive 67.5% of the sale (assuming no affiliate was involved).

  This means that 20% of the sale goes towards billing. To me, this seems really high and I just wanted to open a conversation to discuss why that is. For example, here is a well known adult payment processor with their rates:

  https://www.zombaio.com/payouts-and-rates.asp

  We can see that, at the highest rate, the fee is 10.9%. I'd imagine ModelCentro is at least at the 9.9% ranking on their pricing chart, if not more. 

  Even if we added both WAPIR and sub-accounts, it brings it up only 4% for a total of 14.9% or 13.9% or less. This is still less than 20% that CentroBill is charging. The $3/month fee and $3.50 cash out fee aren't too big of issues here, either.

  Furthermore, it was my understanding that CentroBill is owned by the same persons/company that owns ModelCentro. So, to be blunt, it felt a bit like double dipping here? Maybe?

  I look forward to your thoughts

  Thank you!
• Natalie

  May 2016 edited May 2016

  Hey there @Mika. Thanks for bringing this up, since it looks like this matter is still confusing, so it's a good thing we'll get it all explained. Not sure what you mean by "confirmed in the Models.xxx thread", since the percentages don't work that way at all.

  What we did say in that thread is that billing is a shared cost. That means that all parties involved - like, Model and ModelCentro, share it the same way that they would share income. The model takes 75% of the earnings, and hence is responsible for 7.5% of the billing fee, and ModelCentro, getting 25%, covers 2.5%.

  The fee is taken out of the calculation before any other split takes place (because that is how the money is processed). 

  Let me give you an example so you'd understand a bit better:

  A payment of $100 happens on your website. Centrobill takes 10% (total, not from both model and MC), and passes $90 to MC. MC then splits this $90, sending 75% to the Model and keeping its 25%. Hence, from this $100, the model gets $67.5 and ModelCentro gets $22.5.

  So, as you stated above and I must agree, CentroBill charges a fairly reasonable fee at 10%, especially provided the fact that they are dealing with processing for solo sites of models, a particularly high-risk venture. CentroBill aslo does not charge you a Credit Card fee, which you'd be subject to annually, if you were to have a merchant account with pretty much any other biller (usually, approximately $1000), and covers any fines or fees you might have connected to, say, charge backs (often, the fine you get for having a chargeback is higher than the amount charged back, and no other biller will cover those for you).

  Now, just to make sure this is clear also - CentroBill is a separte legal entity, with a separate team, different location, and not the same shareholders. It happens that we do work with CentroBill on a wide range of products and services. We do cooperate to share infrastructure where possible, since that helps reduce costs of operations.  But I must underline - ModelCentro did not create CentroBill as a hiddenly-separate part of itself in order to earn more - for one, CentroBill is much older than MC. These are two completely different companies. 

   
• Empress Mika

  May 2016

  @natalie - Thanks for explaining all of this. It makes a lot more sense now. Clearly, my math and understanding was incorrect. Again, thanks!