The trouble with setting-up/running a non-profit website/service

Columba Rad

I set-up a fantastic website/service over 2 years ago to sell mobile phone credit over the internet, where users would pay via Paypal, over the phone and credit cards etc... It was very simple and did what it said on the tin. I could supply credit for all networks at the time. I made no profit from the transactions as I was charged a percentage by Paypal and it cost me to deliver the credit, very little, but still, I made no money on it.

I only had the website running 1/2 months when I ran into problems. Firstly I was informed that I was acting illegally as I didn't have a license to sell mobile phone credit over the internet, and that pigsback.com had the only license. Secondly I received solicitors letters from the networks saying I couldn't use their logos on the site, now that's fair enough, I understand that, copyright etc... But, was I not doing them a favor? I was selling their phone credit for them.. :rolleyes:

I took the site down after 5/6 months, not because of the reasons above, but because the "merchant" I was getting the credit from, lets just say I'm nearly €300 in the red because of them, don't ask :mad:...

I'm only one man and I had no other option but to close the site down because of the powers that be :rolleyes:...

It's a shame because I received very positive feedback from users of the site.

I'm thinking of giving this site ago again , what do you guys think? Obviously I want to do it within the law etc...

-Patrick

You sold credit over the internet ?

But when I go to o2.ie, I can buy my own credit. Same with Vodafone and meteor no doubt. I don't get it, am I missing something ?

But to answer your question, the problem with setting up a non-profit, non charity based business is you make no money as you experienced.

Spinnaker

I think you have answered your own question? You say networks have given pigsback an exclusive distribution license to see credit online .... If that's still the case and that situation changes there will be many more in line like you who wish to resell legitimiately

Spinnaker

More..I carried out a short project in the area last year. Consider this from the network side:

Online: Ideally they want the credit purchasing traffic onto their website only to cross-sell phones, attract you to bill pay, mobile internet and loyalty traps to minimise 'churn' to other networks. Exclusive Pigsback distribution if true is clearly some kind of win-win cross-promotion deal. Selling thru ur URL gives yields nothing for them

Offline retail: High spec secure distribution EPOS tills were being deployed into every corner shop. Networks sell top up 'codes' to wholesalers who sell to the retailers.

Wholesalers also buy 'codes' from networks to resell to non-EPOS ready 'merchants' in top up machines. With proliferation of EPOS tills everywhere networks actively and were able to drove down margins to all. Why? Cos top-up purchases brings valuable footfall to retailers.

They may sell direct also say bank ATMs and AnPost etc.

Methinks a merchant was passing 'codes' to you to resell on your website obviously at no margin to you well because he didnt have a lot to give.

Its a sellers market. ..

Columba Rad

If I owned a mobile phone network, I'd want to be able to supply my credit in every possible avenue so customers could buy it...

I actually had the terminal in my shop, I just printed off the ticket and emailed the voucher number to the customer.

The reason I brought up the subject is I'm moving my main business into a retail unit soon, and was going to offer the service again, I still have the .com & recently registered a .ie that I was very pleasantly surprised was available

I'm going to contact the networks and ask them can I do this again. It's worth another go...

Thanks,

-Patrick

Spinnaker

Columba Rad wrote: »

If I owned a mobile phone network, I'd want to be able to supply my credit in every possible avenue so customers could buy it...

I actually had the terminal in my shop, I just printed off the ticket and emailed the voucher number to the customer.

The reason I brought up the subject is I'm moving my main business into a retail unit soon, and was going to offer the service again, I still have the .com & recently registered a .ie that I was very pleasantly surprised was available

I'm going to contact the networks and ask them can I do this again. It's worth another go...

Thanks,

-Patrick

It's all about addtional value

Vendors of course like sell through other avenues (reselling or distribution or 'channels'). Smarter vendors want to capture additional value from the sale (i.e. cross-selling, loyalty etc). Mobile networks retain the sale on their own sites as much as possible for this purpose. I've checked now and cant see any evidence of phone credit being sold on pigsback.

Even when they sell through third party vending machines in retail stores they are network branded

Your scenario while delivering a personal or additional service to your customers -good for you- delivers no additional value to the networks but by give it a go of course and good luck...

Nuttzz

contact pigsback.com and see if you can work out some sort of affiliate deal with them?