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Rapid Action Profits vs. Merchant Account

by SeanyG
13 replies
Hey RAP users and IM experts,

For the last few days I have been doing a lot of reading and searching here and I am stuck in analysis paralysis between 2 payment solutions.

I am setting up a new membership site with Wordpress.

1) The first option is to use my merchant account with authorize.net and Amember. I already have a merchant account and authorize.net setup.

2) I just realized the beauty of RAP and instant affiliate payments. This sounds very appealing for affiliates and I am close to pulling the trigger to purchase RAP!

I understand the other benefits of RAP:

- no paying affiliates
- no tax forums for affiliates
- lower transaction fees
- lower monthly fees
- manages subscriptions just like amember

However, I have talked to a few friends with successful businesses in the IM niche and they say that RAP is for beginners. That eventually you will have to move back to a merchant account and full blown sales funnel.

One close friend that has been using RAP since the beta phase. He just switched to a merchant account. When I asked why he said a few things that threw me off:

- nearly every offer in the RAP world is still $27, $37 home made, low grade, junk products

- if you put a product on RAP, the system itself (the platform) KICKS ASS...but that you're in the mix with the other RAP products / RAP merchants Which is a branding issue.

- good for entry level / smaller sales etc... but it's a far cry from a real merchant account... if you're doing that volume ($10k+ per month)... then you have no business to be on RAP or CB

I'm hoping someone can address these comments and explain why so many marketers recommend a merchant account over RAP / Paypal?

Thanks in advance!

~Sean
#account #action #merchant #profits #rapid
  • Profile picture of the author globalpro
    Sean,

    I have quite a few clients selling high dollar items, so it's not an issue.

    You pretty much summed up the benefits of RAP.

    - no paying affiliates
    - no tax forums for affiliates
    - lower transaction fees
    - lower monthly fees
    Is that possible with a merchant account? Not sure, but I don't think so.

    The thing is, that RAP is not for everyone, but everyone that uses it is very pleased with the way it works and has made piles of money with using it. More and more coming on everyday.

    Thanks,

    John
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  • Profile picture of the author impact-productions
    I don't think that it's such a binary choice, that making over $10K a month means that you leave RAP and get a merchant account.

    I know marketers well over that level of income who use RAP, mainly because of its advantages for attracting affiliates and giving instant payments. The fact that a product is home made is neither here nor there. I'd happily pay hundreds of dollars for (the right) home made product running under a mid-level marketer with RAP, where I know it was restricted, but probably wouldn't ever pay that for one of the heavily pushed top-level guru launches.

    Different products, and different delivery systems appeal to different types of marketers and customers.

    Now, with that said, there's no reason why you can't run both RAP and a merchant account when you reach $10K a month, and aim for the best of both worlds.

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    • Profile picture of the author Richnana
      i just completed some research on the Instant Commission Programs offered online and found that there are alot of quality products offered. These programs are in some cases less expensive than the Clickbank products but they are none the less high quality in most cases.

      The benefit for RAP owners is obvious and draws more affiliates who may not want to deal with the Clickbank requirements and waiting to get their money.

      I enjoyed reading the product features for RAP (well written and detailed) The RAP program is the next level for affiliate marketers product creators. . . . Off to do more research.... Just wrote an article about RAP waiting for ezine articles to approve
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  • Profile picture of the author Sid Hale
    Hi,

    Originally Posted by SeanyG View Post

    However, I have talked to a few friends with successful businesses in the IM niche and they say that RAP is for beginners. That eventually you will have to move back to a merchant account and full blown sales funnel.
    That's hogwash. Could they tell you why you would have to switch?

    And what does your payment processor have to do with a "full blown sales funnel"? Your sales funnel can be as sophisticated as you want it to be, and has nothing to do with with your payment processor

    - nearly every offer in the RAP world is still $27, $37 home made, low grade, junk products

    - if you put a product on RAP, the system itself (the platform) KICKS ASS...but that you're in the mix with the other RAP products / RAP merchants Which is a branding issue.
    You're not "in the mix" with anyone. You're an independent merchant, running your own sales and affiliate system.

    Is it easier/cheaper for the entry-level merchant to get started with RAP vs. setting up a merchant account? Of course!

    But does that mean that you have to switch to your own merchant account, later? Of course not! And even if it did... wouldn't it be easier to reach that level of success using an instant commission platform (a merchant account won't even pay YOU immediately, much less your affiliates)?

    - good for entry level / smaller sales etc... but it's a far cry from a real merchant account...
    Yes it is. Thank God!
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    Coming Soon... Rapid Action Profits (Pro)

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    • Profile picture of the author TheWealthSquad
      RAP provides quite a few benefits as mentioned above.

      How can you tell what program is being used to deliver the product?

      Other than you use Paypal for the payment processor, a RAP site can look like anything. It is a sales page, a transaction method and a delivery method.

      The only benefits I can think of for a merchant account and a different sales/delivery system are
      1) True one click upsells - as far as I know paypal doesn't offer this feature
      2) Slightly lower merchant fees at higher volumes.

      The trade off - all the paperwork associated with affiliates, cutting checks, etc.

      RAP is an excellent program. Sid does a fantastic job of support. He even logged into my first account when the install program didn't fill in all the database and fixed it. In less than 8 hours from request to fix.

      I use a merchant account on two sites that don't deal with affiliates. I use RAP on two sites that do.

      Merchant accounts + a sales/delivery system have their place but so does RAP+Paypal and instant commissions.

      It isn't an either or. Plus RAP+paypal can be set up and running in a very short period. Getting a merchant account can take much longer.

      Just my two cents. Happy with RAP and my merchant accounts.
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      • Profile picture of the author SeanyG
        Thanks for the detailed replies guys!

        Great to hear that those comments are unfounded. The merchant account seems to be the holy grail of online payment processing despite not having as many benefits as RAP!

        The one thing holding me back was the fact that buyers need to have a Paypal account to purchase a monthly, recurring membership un a Website Payments Standard Paypal business account.

        So I called Paypal to see if there is a way around this and [GREAT NEWS SID] they came out with a brand new feature that allows recurring billing without a Paypal account in Website Payments Starndard! YES!

        https://merchant.paypal.com/us/cgi-b...t/erp_overview

        So this alleviated the only sticking point I had with RAP.

        As long as this new feature works with RAP I am good to go. Does it work with RAP Sid? Its still under Website Payments Standard so I don't see why it wouldn't work?!?

        If you can confirm that this works with RAP, you have a new RAP user!
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        • Profile picture of the author Sid Hale
          Hi,
          Originally Posted by SeanyG View Post

          The one thing holding me back was the fact that buyers need to have a Paypal account to purchase a monthly, recurring membership un a Website Payments Standard Paypal business account.

          So I called Paypal to see if there is a way around this and [GREAT NEWS SID] they came out with a brand new feature that allows recurring billing without a Paypal account in Website Payments Starndard! YES!
          I said as much, yesterday, in reply to your topic on that subject. In fact, I told you where to find that option in your Paypal account.

          So this alleviated the only sticking point I had with RAP.

          As long as this new feature works with RAP I am good to go. Does it work with RAP Sid? Its still under Website Payments Standard so I don't see why it wouldn't work?!?

          If you can confirm that this works with RAP, you have a new RAP user!
          Of course it will. It has nothing to do with RAP. Our Paypal Subscription module delivers the visitor to Paypal, and they accept the subscription payment, based on your account settings.
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          • Profile picture of the author SeanyG
            Whoops. My bad Sid!

            I saw your message but I read it quickly and read the part "Its a Paypal thing, not a RAP thing" and I figured that meant that I had to figure out from Paypal!

            Signing up today.

            Thanks!

            ~Sean
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  • Profile picture of the author Jeremy Wilson
    - nearly every offer in the RAP world is still $27, $37 home made, low grade, junk products

    - if you put a product on RAP, the system itself (the platform) KICKS ASS...but that you're in the mix with the other RAP products / RAP merchants Which is a branding issue.

    Funny, you could say the exact same thing about Clickbank :-) Far more crap products using Clickbank than any other single location on the net!
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    • Profile picture of the author Amber Jalink
      I don't use RAP "too" Often - but when I do I love it. (I often sell services, not downloadable products, which is why I don't use it as much as others).

      The only issue is if you want to accept other forms of payment (i.e., credit card outside of paypal or alertpay).

      But, I "kinda" have a workaround... so that I can still use RAP. (It just means the affiliate doesn't get paid directly).

      So if you don't mind the odd tweak in time, RAP is great for the no hassle delivery.

      Amber
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  • Profile picture of the author Amber Jalink
    Oh - and I must add - Sid is ALWAYS quick in answering support requests - and the forum is pretty quick to help you out too - that alone is worth a TON in my book.
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  • Profile picture of the author Rob Howard
    I own and love RAP - believe me, I do!

    But I had problems with paypal - which is of no fault of RAP at all.

    So I got a merchant account.

    With that said, i STILL plan on using RAP within my business. I don't think it needs to be an "either/or" situation.

    RAP is perfect for some business models. A merchant account may be better for others (if you do one click upsells/downsells, etc.) Regardless, there isn't any reason to consider one or the other.

    Rob
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  • Profile picture of the author SeanyG
    Update:

    So far I have had an awesome time with RAP.

    I just did a small internal launch through RAP and it went so smoothly.

    My happiness with RAP in large part comes from John Burnette. John set up RAP for both of my businesses and customized everything. Then he gave me a walk through of the whole system.

    So far I highly recommend RAP and John ("globalpro") to help you get started and manage the technical side!
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