matching fees
Question:
I am developing a business plan for a course in business that I am taking. The business is an online database for various types of contractors such as plumbers and electricians. The idea is that we can use the database to create an edge for the consumer.
We have the consumer give us all the relevant information. We then forward this info to all the people listed in the database who would be interested. Each contractor can then place their bid on the project.
One problem that I am running in to is generating a profit margin. I can see how the service would be useful, but I am having trouble finding a way of making money off of it. What are some common methods similar companies (such as lendingtree.com) use to generate revenue? Where would I be able to find a resource online that would discuss this?
Answer:
Visit www.guru.com and read the terms of service. They offer a service similar to the one you plan. Also check out elance.com.
This text is a copy of the fee information on the guru website. WHEN FEES APPLY. Currently, Guru does not charge Hirers for reviewing Proposals through the Guru Marketplace. However, when you Accept a Proposal, you will pay to Guru the applicable Match Fee (as defined below).
A Proposal is deemed "Accepted" by you when a specific Independent Professional has begun work on a project you posted on the Site or when you and an Independent Professional have expressly or impliedly agreed to work together. Without limiting the generality of the foregoing, one way you signify that you have Accepted a Proposal is to click on the "Submit" button on the "Confirm Proposal Acceptance" area of the Guru Marketplace. You agree to promptly report to Guru all Proposals that you Accept ("Matched Proposals") in one of the following ways: (a) by Accepting a particular Proposal on the Guru Marketplace as described above; or (b) by sending an email to service@teamguru.com. Failure to report a Matched Proposal or pay Guru will give Guru certain audit rights listed below and may result in the termination of your account.
MATCH FEES. Subject to the minimum and maximum fees applicable to Matched Proposals, the "Match Fee" for each Matched Proposal is an amount equal to five percent (5%) of the greater of (a) the total amounts actually paid by Hirer to the Independent Professional for performance of the Project; or (b) the Independent Professional's price estimate for the Project indicated in the Matched Proposal. The minimum amount of any Match Fee is $50.
We may change the method of calculating the Match Fee at any time, but a changed Match Fee will apply to a Project Description you submit only if we notify you of the changed Match Fee at or before the time you submit the Project Description to the Guru Marketplace.
PAYMENT. You will pay the applicable Match Fee within thirty (30) days after you Accept a Proposal. You may pay the Match Fee in one of two ways, described below.
Paying by Credit Card. You may pay the Match Fee for a Project by clicking the "Submit" button on the Invoice page. When you click the "Submit" button, you authorize Guru to charge your credit card for the Match Fee applicable to your Accepted Proposal. You will receive a 5% discount on your Match Fee when you pay by credit card.
Paying by Invoice. You may request that Guru invoice you for the Match Fees you owe us. When you click on the "Submit" button, you re-confirm that you owe Match Fees to Guru. You may pay by either printing the invoice for your Match Fees from the invoice pages or pay the amount of the invoice that Guru will send to you at the billing address you have provided. You agree to maintain current and valid billing and email addresses in your Hirer profile. In the event that you do not receive an invoice, you are still responsible for payment. You agree to return payments to Guru within thirty (30) days after the invoice date. You may direct questions regarding invoices to billing@teamguru.com.
Best of Luck,
Milton Zlotnick
Plan4biz.com
I am developing a business plan for a course in business that I am taking. The business is an online database for various types of contractors such as plumbers and electricians. The idea is that we can use the database to create an edge for the consumer.
We have the consumer give us all the relevant information. We then forward this info to all the people listed in the database who would be interested. Each contractor can then place their bid on the project.
One problem that I am running in to is generating a profit margin. I can see how the service would be useful, but I am having trouble finding a way of making money off of it. What are some common methods similar companies (such as lendingtree.com) use to generate revenue? Where would I be able to find a resource online that would discuss this?
Answer:
Visit www.guru.com and read the terms of service. They offer a service similar to the one you plan. Also check out elance.com.
This text is a copy of the fee information on the guru website. WHEN FEES APPLY. Currently, Guru does not charge Hirers for reviewing Proposals through the Guru Marketplace. However, when you Accept a Proposal, you will pay to Guru the applicable Match Fee (as defined below).
A Proposal is deemed "Accepted" by you when a specific Independent Professional has begun work on a project you posted on the Site or when you and an Independent Professional have expressly or impliedly agreed to work together. Without limiting the generality of the foregoing, one way you signify that you have Accepted a Proposal is to click on the "Submit" button on the "Confirm Proposal Acceptance" area of the Guru Marketplace. You agree to promptly report to Guru all Proposals that you Accept ("Matched Proposals") in one of the following ways: (a) by Accepting a particular Proposal on the Guru Marketplace as described above; or (b) by sending an email to service@teamguru.com. Failure to report a Matched Proposal or pay Guru will give Guru certain audit rights listed below and may result in the termination of your account.
MATCH FEES. Subject to the minimum and maximum fees applicable to Matched Proposals, the "Match Fee" for each Matched Proposal is an amount equal to five percent (5%) of the greater of (a) the total amounts actually paid by Hirer to the Independent Professional for performance of the Project; or (b) the Independent Professional's price estimate for the Project indicated in the Matched Proposal. The minimum amount of any Match Fee is $50.
We may change the method of calculating the Match Fee at any time, but a changed Match Fee will apply to a Project Description you submit only if we notify you of the changed Match Fee at or before the time you submit the Project Description to the Guru Marketplace.
PAYMENT. You will pay the applicable Match Fee within thirty (30) days after you Accept a Proposal. You may pay the Match Fee in one of two ways, described below.
Paying by Credit Card. You may pay the Match Fee for a Project by clicking the "Submit" button on the Invoice page. When you click the "Submit" button, you authorize Guru to charge your credit card for the Match Fee applicable to your Accepted Proposal. You will receive a 5% discount on your Match Fee when you pay by credit card.
Paying by Invoice. You may request that Guru invoice you for the Match Fees you owe us. When you click on the "Submit" button, you re-confirm that you owe Match Fees to Guru. You may pay by either printing the invoice for your Match Fees from the invoice pages or pay the amount of the invoice that Guru will send to you at the billing address you have provided. You agree to maintain current and valid billing and email addresses in your Hirer profile. In the event that you do not receive an invoice, you are still responsible for payment. You agree to return payments to Guru within thirty (30) days after the invoice date. You may direct questions regarding invoices to billing@teamguru.com.
Best of Luck,
Milton Zlotnick
Plan4biz.com
posted by kan chun at 1:46 AM
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