Zong - Costs

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David Marcus demonstrates the power of Zong+

Costs

Expensive, but worth every penny

Zong is not for everyone. In fact, if you're selling physical goods on low margins, you can probably stop reading now. However, if you're selling digital goods or services at high margins, then you're in the right place.

There really is no way to spin it: mobile carriers take a big bite. Depending upon the country, a carrier can charge you anywhere from 25 to 50% of the sales price. (Stay with us -- the good news is coming.) Zong has no setup or monthly fee. We charge a small transaction fee on each purchase, so we only get paid when you do.

While carrier billing can be expensive on a per-transaction basis, it's important that you consider the increased conversion rates you should expect. To help you with this, we created a little Number Cruncher below. If you're looking for specific carrier payouts, you'll find them on our Coverage page.

And now for the good news

This handy calculator illustrates the impact of Zong on your sales margins. Hint: it's all in the conversion rate.

Number Cruncher *
Price Point: What you charge your customer. Price Point: $
People who want to pay: The number of people who click on the proverbial "buy now" button. They intend to pay, but don't always follow through for a number of reasons (e.g., bad user experience, privacy and security concerns, etc.) People who want to pay:
	Zong	Credit Card
Conversion Rate: The rate at which people who want to pay actually end up making a payment. For example, a conversion rate of 10% would yield 1 paying customer for every 10 who intended to pay. Conversion Rate: %
People who actually pay: The number of people who complete a payment successfully. (People who want to pay) x (Conversion Rate) People who actually pay:
Gross Revenue: Total sales dollars generated. (People who actually pay) x (Price point) Gross Revenue: $
Variable Fees: Amount of fees you can expect to pay that are tied to the Price point. For Zong payments, we assume an average Variable Fee of 45%. For credit card payments, we assume an average Variable Fee of 3%. (Variable Fee) x (Gross Revenue) Variable Fees: $
Fixed Fees: Flat fee charged each time a payment transaction is completed. For Zong payments, there is no flat fee. For credit card payments, we assume a Flat Fee of %24.30 per transaction. (Flat Fee) x (People who actually pay) Fixed Fees: $
Total Fees: Combined total of all Variable and Flat Fees. (Variable Fees) + (Flat Fees) Total Fees: $
Net Revenue: What you get get from a sale after paying your payments provider. (Gross Revenue) - (Total Fees) Net Revenue: $

* The pre-filled values are based on existing customer implementations and are not necessarily indicative of every implementation. Conversion rates may vary due to your customer demographics, their preferences, your product and the overall user experience.

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Costs

Expensive, but worth every penny

And now for the good news

Price Point:

People who want to pay:

Conversion Rate:

People who actually pay:

Gross Revenue:

Variable Fees:

Fixed Fees:

Total Fees:

Net Revenue: