Selling Your Writing (and Anything Else) Online

by Moira Allen

To writers, one of the most exciting potentials of the Web is the prospect of being able to sell one's "words" directly to the reader, rather than having to work through editors and publishers. Hundreds (if not thousands) of writers have turned to the Web to market products and services such as e-books, subscription-based newsletters and e-zines, software, classes, and editing and coaching services.

Many writers also use the Web to sell tangible products -- e.g., self-published print books. Selling a tangible product, however, means becoming an actual "retailer," which has tax implications and legal requirements (such as business licenses and sales tax permits) that are beyond the scope of this column. Selling purely digital information is simpler, but is still considered a business for tax purposes (and you may need a business license, depending on where you live).

No matter what you sell, you face the same basic challenge: Getting paid. In the "old days" (about a decade ago), it was virtually impossible for a home-based business-person to get approved for credit-card "merchant status." Fortunately, the Web has changed all that; now, accepting credit cards can be as easy as setting up an account with a provider and inserting a few lines of HTML into your Web page. But which provider? The answer, of course, is "it depends."

Third-Party Providers

The easiest way to accept credit cards online is to sign up with a "third-party provider," such as PayPal, ClickBank, DigiBuy, or PaySystems. These companies handle credit card transactions for you; you never actually see the customer's data. For security reasons, many customers prefer to deal with such a provider rather than directly with the seller.

To get started with a third-party provider, all you need to do is set up an account (usually linked to your bank account and, in some cases, to your credit card). Then, you can insert a section of HTML code into your site that routes customers to the provider to make their payment. Once the transaction is completed, the customer is returned to your site (e.g., to a page where they can download your e-book).

Some providers (such as PayPal) will handle transactions for any type of product, while others (including ClickBank and DigiBuy) will only process orders for digital products. Most provide options such as a simple "buy now" button that you can place beside a single product; a few, such as PayPal and PaySystems, also provide coding for a "shopping cart" that enables a customer to purchase more than one product (or more than one of a single product).

The disadvantage of third-party providers is the fees. PayPal is the least expensive; its highest charge is 2.9% of the transaction plus a flat fee of 30 cents (with an additional charge for payments originating outside the U.S.). ClickBank charges 7.5% plus $1 per transaction; DigiBuy charges 13.9%. Thus, if you sold a $10 e-book through each of these providers, you'd lose 49 cents to PayPal, $1.39 to DigiBuy, and $1.75 to ClickBank. Some providers also charge an initial set-up fee (PayPal does not).

A final advantage to many third-party providers is the ability to establish an "affiliate" program. This enables you to let other sites "advertise" your product, and earn a percentage of every sale that is made through that site. ClickBank has its own affiliate program, while DigiBuy works with Commission Junction and AffiliateTracking.

Though sellers often find third-party providers convenient, buyers sometimes do not. Enrolling in PayPal, for example, can be cumbersome (especially for international customers), and many people don't like having to provide all the information required.

Merchant Account Providers

An alternative to third-party providers is to establish an actual "merchant" account that enables you to take credit cards directly. Michael Knowles, author of the e-book "You Can Take Credit Cards Online," recommends using a merchant account if you expect to earn more than $1500, or process more than 200 transactions, per month.

A merchant account lets you process credit cards like any retailer, using either a standalone terminal or a "virtual" terminal (working through your computer). Some providers also provide assistance in setting up a shopping cart, and in setting up the security your Web site will require if you plan to accept credit cards online.

Another advantage of using a merchant account is that you can accept credit cards anywhere. If you have a physical terminal, you can take it with you to a writing conference or booksigning, and you can also accept credit cards by phone or mail. The per-transaction costs are generally lower than those charged by third-party providers, but you will usually have to pay a sign-up fee (ranging from $50 to $200, according to Knowles), and possibly a monthly fee and a terminal rental fee as well.

Checks and Beyond

While most of your customers will expect to be able to make instant purchases with a credit card, you'll also encounter a significant number who won't use credit cards online, generally due to fears about privacy and theft. For those shoppers, you'll need to provide another option.

Generally, that means making it possible for a customer to pay via check or money order. This isn't always as simple as it sounds. For example, if a customer pays by check, you need to be sure that the customer writes it to you (rather than the name on your Web site), unless you've set up a "doing business as" account with your bank. You also need to provide mailing information -- and many writers are reluctant to post a mailing address on a Web site. If you prefer not to provide this information publicly, ask customers to e-mail you for details on where to send a check. You might also wish to set up a post office box or private mail box to receive payments.

Another issue is verification. While third-party providers and merchant account providers can verify a credit card almost instantly, you won't know if a check is good until it has cleared the bank. Since customers expect prompt delivery of your product, chances are that you'll have shipped or e-mailed that product long before you get the news that the check bounced.

Yet another problem with check-paying customers is that many fail to provide sufficient information for delivery -- including their e-mail address, even when they know that the product will be e-mailed! One solution is to create a downloadable (or e-mailable) order form that customers can print out, complete and return with their payment.

International transactions create additional problems. Most third-party providers have not been widely embraced outside the U.S. Most U.S. banks charge hefty fees (usually $10 to $20) for non-U.S. checks, and even more if the check is not in U.S. currency. Thus, while people from around the world may want to buy your product, they may have great difficulty actually paying for it.

If you anticipate a high demand for your product outside the U.S., your best bet is probably to set up a merchant account. This will enable you to accept credit cards from any location, without requiring your customer to establish an account with a third-party provider. Some sellers also accept payment in the form of online gift certificates as a last resort.

Setting up an "e-commerce" site doesn't have to be an intimidating process. Just as the Web makes it easier for you to "spread the word" to potential customers, it also makes it easier for those customers to buy from you. With a little research (and a good Web site), you could be selling your words to the world!

Resources:

Third-Party Providers

ClickBank - http://www.clickbank.com

DigiBuy - http://www.digibuy.com

PayPal - http://www.paypal.com

PaySystems - http://www.paysystems.com

Merchant Account Providers

Advanced Merchant Services - http://www.advancedmerchant.net

Charge.com - http://www.charge.com

goEmerchant - http://www.goemerchant.com

PaySystems - http://www.paysystems.com

"You Can Take Credit Cards Online," by Michael Knowles

http://www.youcantakecreditcardsonline.com/

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