Lets be honest, MCA is a great product, we all know this. However one of the biggest drawbacks of MCA is the notorious chargebacks. What is a chargeback you ask? An MCA “Chargeback” is when you sign someone up for MCA, and they cancel the MCA services before 17 months! This is a pretty big deal to a lot of MCA reps who are making money on month 1 or 2, and are even more broke on month 3 or 4 when everyone they hired has quit.
How Chargebacks Work
I like to do research, so this intrigued me quite a bit. Honest MCA reps will let you know that chargebacks are no joke and are taken out immediately! This is why it is extremely important to sign up QUALITY MCA representatives who will be with MCA for the long haul (Or at least 17 months). If you learn nothing from this post, please take away that Quality ALWAYS trumps Quantity (aka Quality over Quantity). Lets take a look into how MCA chargebacks work.
The Story of Little Sally and Ralf
So for every signup, you make $80 bucks right? Well lets do some math. In this example we have Little Sally, who passed out MCA Flyers throughout her neighborhood from motorclubflyers.com and signed up Ralf 5 months ago, but didn’t tell Ralf that MCA was not an insurance company, which caused Ralf to get in quite a bit of trouble with the police Ralf is upset after 5 months and decides to quit…
$80(dollars) /17 (months) = $4.70 (dollars) – Rounded
As you can see, we have taken the $80 dollars, and divided this between the 17 months. This gives us $4.70 roughly, which is how much commission you technically earn on a monthly basis per person you sign up for MCA or “Ralf”. Normally you get a lump sum or “advance” of 17 months (or $80 bucks) worth but this is more of the reality.
4.70 (dollars) x 5 (months) = $23.5 (dollars)
This is how much Little Sally made from Ralf’s subscription over the course of 5 months.
$80(dollars) – $23.5(dollars) = $56.5 (dollars)
The Moral of the Story
This is how much you (or Little Sally) would owe, or would be deducted from your MCA earnings if Ralf had cancelled after the 5 months. Scary huh? Even though the benefits and rewards are great, if your plan is to get new sign ups like most people and make that extra income, always work toward getting QUALITY MCA reps who will work hard to make money with you, or educate your sign ups on the benefits so there is no confusion and they understand what they are paying for. This will enable them to utilize the benefits and keep them longer!
I may do another piece on how to create quality MCA reps soon. Click the ads if you like the post! (Every click is like a little baby “OMG Thank You!“ sent to my bank account!! ) Stay tuned guys!