The angel investor we met on Monday, Bob Okabe, is director and investor in SignMeUp.com, a team registration service. In researching their offering I’ve discovered that their fees are between 5.5% and 6.5% plus a $1.00 per transaction charge.
In my last post, I expressed my worry that our customers won’t pay our fees on large size transactions. However, their (SignMeUp.com) fee structure is even higher than ours. Given that they have been in business for almost ten years their business model must work in some fashion.
We will continue to do the work to understand our customers’ price sensitivity but this information gives me lots of comfort that our business model is fine.