How can RedGage afford to pay me?
With RedGage you get a guaranteed payout rate which increases over time. On RedGage the minimum balance required for payout is $25, which is reasonable. The first time you request a payout on RedGage, they charge a $5 fee for the Visa card. Keep the card, as future payments will be transferred wirelessly to it within a year. Also, RedGage has a good reputation. They are trustworthy and payout as promised.
RedGage generates income by displaying advertising on its pages. This model is sustainable because RedGage pays out part of its earnings. On average, they pay out 50 cents per thousand page views to the members. Let’s say RedGage generates $1 per thousand page views in revenue. This arrangement equates to a 50 percent revenue-split which is typical in this industry.
Some people have said that this payout rate is very low compared to that offered by Pay-Per-Click programs (PPC) like Ad-Sense. However, I believe it’s reasonable for several reasons. The advertising on RedGage is non-invasive, and barely noticeable and it does not detract from the user’s experience. This is important because it will encourage people to frequent the site more often, thus generating traffic in volume. More traffic means more revenue, and user loyalty from all sides.
However, there are some rules and fees you should be aware of before you commit. RedGage delivers the funds via Visa debit card. They charge a $5 fee for the card (which is imprinted with your name) plus a 5 percent processing fee to transfer the money onto your card from your RedGage account (aka withdrawal). What does this mean to you in actual numbers?
Let’s say you win the $25 daily contest prize. The deductions would be as follows: $25 less $5 card issue fee less 5% wireless funds transfer fee. Your resulting balance would be $18.75 because 5 percent of $25 equals $1.25. So, right away you lose $6.25 before you have even activated the card. The card expires one year from the month (date) of issue. So after 12 months you will need to pay the $5 fee again to get a new card.
I reside within the continental United States and it took me exactly one month to receive the card in the postal mail from the date of winning it. I presume it would take longer for resident of Alaska or Hawaii. For those located in other countries, it could easily take two months, or even longer (probably depending where you are and on how reliable the mailing service is). Some have suggested PayPal as a better alternative to the current payout method. Personally, I cannot stand PayPal and believe the current method of payment is better for American residents. However, I can see the need for improvement in sending payments abroad.
In addition to this, if you are outside American territory, you will be charged foreign currency exchange fees on every transaction. RedGage contracts a company by the name of Wolfe Rewards and Loyalty, which sends out the spendable Visa gift cards with the member’s earnings on it. Enclosed with the Visa debit card are the “Program Terms and Conditions.” Under the “Conversion to U.S. Dollars” heading, a statement in the last line reads “All transactions in foreign countries will be subject to a fee of $2 plus 3 percent of the purchase value.”
What this means for people outside of the United States is that you cannot spend the balance on the card in your home country and currency, without paying extra fees. To avoid the currency transaction fees, non-U.S. members generally opt to spend their balances on the internet in American currency. I live in the United States, so I did not have any problems.
Despite this, I still believe RedGage is a good deal, even for members located in foreign countries. As RedGage grows, and gains market leverage, it will be easier for them to improve their payment system. I certainly hope they do. Also, they can sell advertising space on their website directly, which will mean higher payouts for everyone. For example, HubPages has won advertising contracts with Tribal Fusion, Advertising.com, Microsoft AdCenter, Value Click, Glam Media and other networks. Now, they pay directly to members via PayPal in addition to Google Adsense. RedGage could implement a similar program over time. Therefore, I still think it’s a worthwhile investment of time and effort. All Rights Reserved by Vela @ RedGage.
Copyright 2011 By the Author of Volition