Convertri’s go-to-market strategy is centered around launch campaigns through partners. While this gives reach to very large audiences, Convertri found this approach is challenging when it comes to recurring billing. CEO Andy Fletcher explains:
“With our sales model, it’s much more effective to sell a one-time, fixed purchase and then upsell to a subscription later on. This is really difficult when your system doesn’t connect the initial payments to the subscription.”
This model, combined with big promotional launches made for large revenue spikes that were falsely flagged as fraudulent by both previous payment providers.
On the initial launch, this left Converti frozen out of an account containing $280k with one provider and having an account completely shut down by another. Andy says:
“We understood that we couldn’t work with them but we wanted to know why and exactly what happened so we could make sure it didn’t happen again with a new provider. Nobody would talk to us to explain, which was really frustrating.”
Andy spoke to a friend who recommended Paddle and on looking for a new partner he decided to set up an account.
“The problems with other providers had put a strain on those relationships, I couldn’t fully trust them again. We just wanted a solution that we could work with to explain the business model, and give us the level of faith that once transactions were processed, we’d be able to receive the payouts.”