Clipstore-sites vs. own shopping cart

So, you’ve maybe wondered why you should use a clipstore site and only get a % of the sales instead of setting up your own shopping cart and keep 100% (theoretically) of all sales? I’ve seen a lot of people that were like “Oh my god, you take 40% of my sales and all you do is host my videos – that’s totally not fair!” – yeah sure, just buying a hosting account and you’re set!

On a serious note …. there’s a lot of reasons:

1) You need a custom software that allows you to sell digital goods and offer downloads immediately after payment. Additionally you need to get this software connected to one (or better 2-3) payment processors. The software needs to be hack-proof (so no one gets your customer’s records, downloads all your videos for free, etc.) and comply with your local business rules as well as with the strict conditions of credit card companies. Easy to spend a high 4 or even 5-figure dollar amount on the software alone!

2) Now you’re setup with your site and uploaded your videos – what’s next? No customers will magically appear and go on a shopping spree! So you’ll have to build up your own traffic sources or buy (mostly crappy, not converting) traffic from brokers – duh! So that will either cost you another shitload of money or at least a lot of time you could be spending on producing content.

3) Now that you’ve a site, traffic and buying customers you’ve to deal with all kinds of everyday-hassles – unsatisfied customers, technical problems, chargebacks, server failures, legal problems, much more bookkeeping work, etc.

So, after all of these expenses and lost time you probably earn less than the percentages clipstore sites are offering you – with much more work-time spent!

And finally … there’s no reason why you shouldn’t have both! Build up nice revenue streams on the big sites and spend the earned money on building your own site as another revenue stream!