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Tip of the Week: When to charge client 1/2 Matterport Cloud Hosting Account17120

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DanSmigrod private msg quote post Address this user

WGAN Tip of the Week

Tip of the Week: When to charge client 1/2 Matterport Cloud Hosting Account

Hi All,

A WGAN Forum reader emailed me today (Thursday, 14 July 2022):

We're a digital marketing agency and we do Matterport tours for our clients as part of the full service offering we provide. We're looking for a hosting partner to host the tours, since the cost of hosting with Matterport is very high and not really feasible for a lot of our clients.

I was thinking we could engage [WGAN] for the [Matterport] hosting service for our clients. Is something like that an option?

Tip of the Week

If you do fewer than 25 Matterport digital twins for a client using a Matterport Pro2 3D Camera – that needs the tours on an ongoing basis - consider charging each client 1/2 of the $69 per month Matterport Cloud Hosting for "hosting, support and maintenance" ...

With two clients, you break-even on your Matterport Cloud Hosting. Every client after two - the recurring revenue goes to your bottom line. [

Note that the Matterport $9.99 per month cloud account does not support Matterport Pro2 3D Camera created tours. The Matterport Free hosting is for tours set to Private.]

What are your thoughts on this Tip?

Best,

Dan

(Based on the Matterport related services that you charge your clients, 1/2 of Matterport Cloud Hosting account may be too little per month. I could easily make the case for charging a lower price for shooting the tour and make your money on recurring revenue.)
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Gladsmuir private msg quote post Address this user
Hi Dan,
Ever since Adobe and other suppliers who have software that many small businesses cannot function without went from a purchase to a subscription model the same small businesses have dreamed of creating recurring incomes.
It really sounds wonderful, charge little or nothing for a service and rely on a modest recurring fee to keep the wolf from the door month after month right in to your twilight years.
The catch is that 99.99% of customers, be they the local mom and pop operation, or a business turning over millions in revenue every year hate recurring charges, however attractively they are presented.
If you withdraw your virtual tour the lights will not go out for the client, their business will not come to a juddering halt.
Sadly the marketing person in an organisation may have differing views on expenditure on your tour to the person who controls the purse strings.
We have been supplying virtual tours for more than ten years, and websites for twenty years and have tried all sorts of variations on recurring fees.
Based on experience of clients cutting off their own noses in spite of their own faces I charge as much as possible up front and view the recurring subscription as a modest bonus.
150 units of your local currency is a common amount to charge it seems.
Oliver
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Queensland, Australia
Wingman private msg quote post Address this user
I agree with @Gladsmuir. It seems everybody hates these resuming fees no matter how small they are.
I've recently lost a client and disabled their 3D tour because they've decided not to pay $180 AUD per year for the tour hosting. I won't tell the client name but this is one of the biggest worldwide know property developer company that Matterport bragged around a lot making them their client.

A bit of history about them: I contacted their local marketing manager on Linked in 2020 and offered them to do what I did for the biggest project in Brisbane called Queens wharf. She replied that she was on maternity leave leaving her opinion about my service or their need in my service out. I took it as she was not interested and moved on. With Covid just staring back then I had quite a lot of jobs to chase.


Then in one year I received an email from the manager telling me that Queens Wharf guys highly recommended me and she'd like to do a 3D tour for their display & sale office for one of their residential project in Brisbane. I came and did it and my invoice clearly stated there would be some fees for hosting after 4 months.

I was busy later and did not charge anyone for hosting for a long time including these guys. Then I got dry of jobs and sent emails that it's time to pay hosting. Most paid but not this client. The manager told me they did not need my tour and I can delete it. Queens Wharf guys even it was not related to them at all said wait a bit while we talk to the manager but they could not do anything.

The funny/bad thing the tour had no more than 3 unique visitors over more than a year. So it may be just the manager's fault that she did not use it at all. However refusing to pay $180 while capturing costed a few times more still kind of does not make much sense.


BTW, when I try door sales the phrase "It is one time fee for Google Maps tour and nothing else to pay" has gotten me two clients in my local shopping centre. Both owners are ladies in their late 50s that I would not expect to be excited by modern tech. One of them seem to be so exited that when I shown her the completed tour and said "I hope it will bring you more customers" replied "it does not matter.. it is so cool to have"
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