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An overview on what premium rate lines are all about
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So what IS a premium rate telephone number?
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Put very simply, it is a telephone number that costs more than usual to call, the extra money being paid to whoever runs the lines.
So for example, when you dial 0909 12345 to vote for your favourite Pop-wannabe, the call may cost you 25p a minute. Of this, perhaps 10p is used to actually place the call and the remaining 15p is handed over to the TV Company that is running the show - these figures include VAT @ 17.5%
In much the same way here, out of the £1 a minute (about 85p ex vat) which is charged to your web visitor when they call on of your stories, around 60-70p per minute is handed over to us (depending on call volumes etc), the rest pays for actually getting the call through.
From this, we pay for the actual creation of the stories, the admin costs, line rentals and telecomms gear - and end up with a net profit of around 50-55p per call minute. We pay you 40p a minute - possibly more IF you generate good call levels.
There are many different rates that are offered but to keep things simple, this service is only operating on the £1 per minute lines.
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Do people really call?
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Yup! in the UK, it's a £1 billion per annum business. With around 30,000 service running at any one time.
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Is this a dialler?
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No, absolutely not! A dialler is a program which runs on your PC and typically connects the user to the internet via a premium rate number. This has NOTHING to do with diallers whatsoever. This system simply lets the visitor to your site, pick up a telephone, dial a number themselves and then listen to our stories. They then hang up and the job is done. Nothing is donwloaded to the computer, no settings are changed and NO dialler is installed.
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Who pays what?
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Ok, this gets a bit long winded:-
The caller pays their local phone company - eg: BT
BT pays the premium rate number provider
The number provider pays us
We pay you
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When are payments made?
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As you can see from above, there is a fair bit of invoicing and paying going on, this does take a bit of time. As such it is usual in the industry to pay at the end of each month, one month in lieu. So, to put that in English. Any traffic you generated in April would be paid to you on the last working day of May.
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How reliable are payments?
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Despite the rather complex chain of people involved, payments in the industry tend to be VERY reliable unless there are suspicions of fraud or other illegal practices.
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Are there any rules involved?
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Yes, in short if you follow our rules you will comply with all of them, but for a more detailed run down, you should visit the ICSTIS website.
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What happens if rules are broken?
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There are three things to be wary of, firstly, breaking UK law (with regard to illegal material etc), the second is ICSTIS - our watchdog and lastly, our own rules. In the first case, the police are likely to be involved, in the second case, ICSTIS may either fine you AND/OR disconnect your service - and lastly, if you break our rules we reserve the right to withhold payment. So stick to the rules and everyone stays happy.
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How can I find out more?
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The ICSTIS site give both an overview on the industry from a layman's perspective and also provides detailed information for service providers and information providers.
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