Friday, April 14, 2006

Non Value Added Business

I run many different business, and it continues to surprise me how successful (relatively) my non-value added business that sells domains is. I don't (normally) sell any domain directly to customers, but I sell them to resellers instead.

My prices aren't great, the service isn't great, and its based (entirely) off another company. I haven't even bothered to upload a custom logo. The only different part is, my pricess (for resellers) are lower than what they can get if they sign up directly with this company directly, and most of its competitors. I add no value in this process, they pay me and I turn around and pay the company. The only advertising I've done for it includes posting to some random forums.

I originally started the business in an attempt to decrease my costs of accepting credit cards, simply by increasing my volume.

Note: by successful, I mean in volume, not in profit. Since my original goal was just increasing the volume of transactions, I decided to minimize my price. However, since the volume is now sufficiently large, I can take some cost saving measures with respect to how I handle the transactions, allowing me to make a small profit on each sale. I just have to go to the states briefly :-)

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