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Why I Use WP Affiliate rather than JVZoo

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In this session we compare WP Affiliate to JVZoo and talk about why we prefer to use WP Affiliate. We also talk about how the Paypal system works when managing payments.

Video Transcript

Member: Okay, I’m speaking of WP Affiliate just triggered but some people you know, whether it’s a product or a membership site like you know, some marketing people have suggested and they like to do is they like to advertise you know, put it on JVZoo and does JVZoo handle the affiliates, thieves and the counting of all of that stuff. I’m assuming that you just use WP Affiliate.

Member: That is what I used too.

Member: Correct and you don’t use both and is there an advantage using one over the other or should I like if I’m JVZoo I guess I’ll get more exposure. I’m a little nervous because now people are going to promote my membership site that I don’t know who they are or how they’re going to promote it. What is your feeling about that? For you and for me?

Rick: Well, I guess my feeling about it is that you know, I don’t want to wait for somebody to give me the money from the sale.

Member: Right.

Rick: And I don’t want to pay them to manage it because it’s not particularly difficult to manage so I just do it myself.

Member: Okay and in terms of because somebody had mentioned well you know, if you JVZoo I don’t know how accurate it is but they’re saying if you do JVZoo you don’t like have everybody’s data so if somebody hacks into your site which I’m going to try to keep very secure.

Rick: You don’t have anybody’s data anyway.

Member: Okay, good, good that’s… Because that’s all in Paypal right?

Rick: Right.

Member: All their credit card and all that?

Rick: Right.

Member: And if I wanted if somebody has Paypal I mean excuse me, they have Paypal they can use any credit card they’ve got and just use it through the Paypal system that’s free but if they want to use a credit card and they don’t have a Paypal account, that’s why you pay the $20 a month to process that, correct?

Rick: That’s correct yes.

Member: Okay.

Rick: And.. I mean I don’t know what they quote you for fees if they do the processing for you but you know Paypal charges me just under 2.5% so yeah, I pay them $20 a month but I only pay just under 2.5% for every transaction.

Member: In addition?

Rick: Yeah but that is dirt cheap for you know credit processing services.

Member: Correct.

Rick: It’s dirt cheap.

Member: So let’s say okay, I’m going to do $10 a month, so let’s just say just so you know what we’re dealing with here, my access is going to be on my marketing with some WordPress, a lot of emphasis on like plugins and stuff you know so and you know, maybe a little Thesis because I want to promote it, we love Thesis.

Rick: Sure.

Member: I’m still with.. that’s my you know but anyways, that’s what I’m doing. Okay, $10 a month so everytime someone pays me $10, Paypal is going to keep like is it 2.5-3% or something?

Rick: Yeah well, it cost me 2.5%. It’ll probably cost you more than that at first.

Member: Okay.

Rick: Right. I’ve been with Paypal for over 5 years.

Member: Alright.

Rick: And you know, my monthly sales volume is such that I’m in the lower percentage rate.

Member: Okay.

Rick: Right. I think you know there’s.. I don’t remember exactly what the tiers are but the first tier is less than a thousand dollars a month and that’s you know probably 4.5% or something like that.

Member: Yeah.

Rick: And then you have more than a thousand dollars a month but less than $5,000 a month and then between 5 and 10 and I don’t know what there is after 10 but they do have a tiered system where they charge it based on the sales volume of the month. After you get to a place where you have developed a sufficient relationship with them so that they know that you don’t have a high refund rate or you don’t have a high complaint rate there’s also some deal for lowering your cost rate.

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