PSW Fits The Bill

In the mid-90s the Internet boom brought with it a surge in the growth of information technology companies eager to take advantage of increased demand and huge revenue opportunities online. But, it wasn’t primarily demand in the market that prompted John Lombardi to build a billing solutions and payment company. “For us it wasn’t so much the demand; we knew we could make money doing it. It was a question of doing business a little different.”

In 1996 Lombardi launched PSW Billing Solutions, a billing solutions and real-time credit card processing company focused on providing user-friendly solutions - stable, smart and secure - to Webmasters, particularly those in the ‘subscription-based’ arena. Having been a ‘subscription-based’ Webmaster himself, Lombardi is familiar with the issues that many of them face.

One issue he discusses is database ownership. “One of the big things with me as a Webmaster was if I was with a billing company and wanted my database back because I wanted to change from one billing company to another - I didn’t want headaches. I didn’t want somebody saying we’ll give you your database in two to three weeks or your database is our property because we do the billing. I feel that if you’re a Webmaster and you’re with us and you’re not happy and you want your database - here it is, it is 100 percent your property.”

In addition to offering no set-up fees - another issue that Lombardi found was top of mind for many Webmasters - PSW Billing Solutions pays clients on a weekly basis. Lombardi explains, “At the time, many billing companies were paying out every three to four weeks, whenever they felt like it. But I know how tough it can be with cash flow as a Webmaster, especially if you’re paying affiliates, so one of the first things we did was to make sure we paid companies on a weekly basis.”

The key to the company’s success in this area was to develop a system that was flexible. Lombardi explains, “We didn’t lock ourselves into a particular software. We created this primarily for the ‘subscription-based’ business and made it flexible so that once we started to expand the only thing we would do is add features that would help the Webmaster. That’s why people love it.”

Since launching in 1996, PSW Billing Solutions has experienced significant growth. With four offices in the US – one in Detroit, Virginia, Rhode Island and the Florida Keys, approximately 60 percent of the company’s business is in the US. The remaining 40 percent is with international clients. “We’re probably one of the biggest billing companies in Russia,” says Lombardi. They also have clients in other countries including China and Japan. “We’re pretty much all over the world.”

PSW Billing Solution’s success in the international market is largely attributed to its customer service, which has enabled it to keep its charge backs low. The company has built a system that enables customers to easily retrieve their password if they lose it, “so they don’t get frustrated” and cancel their subscription.

The company also develops customized order forms for its clients at no charge, which Lombardi says increases their clients’ conversion rates. Because the order form looks like the site, customers feel as though they are still on the site and “not leaving to go to Joe Blow’s service.” In fact, the company has even translated order forms into the language of the client’s site. “It costs me money but I’m not going to charge the client. We’ll take care of them across the board…and do everything we can to get them up and running.”

Lombardi also points out that they have first class management system that enables Webmasters to see accounts in real-time, add passwords, see their members’ information, and extend memberships. “Lets say you are a Webmaster with five different web sites. You can break down each web site by daily transaction, transaction details – if you want to search for a client, you can search anyway you want – by e-mail address, IP address, first or last name, credit card number…”

But, Lombardi believes it’s the company’s customer service that sets it apart from competitors like iBill and CCBill. Clients “have the ability to actually talk to a programmer, or a graphics person or even our accountant,” explains Lombardi. “We’re really flexible, we will help them set-up, and deal with any issues they have.”

As far as ‘subscription-based’ businesses go, Lombardi believes that it will be a time where bad sites will disappear and larger, niche clients will be doing their own content. It’s going to be a shakeout that will leave the good Webmasters. “Webmasters have to go back to quality,” explains Lombardi. “You can’t just buy content in can and put that content on a site, have twenty different doors to the site and then have identical content behind each door. Webmasters will need to do constant updates, really pay attention to their members and retain them for as long as possible.”

With an approach to business that is ‘different’ and based on years of experience, PSW Billing Solutions is poised for success in the ever–expanding ‘subscription-based’ arena. “We’re growing, have unlimited credit and will always maintain our customer service and the way we run our business. Size is not going to make us forget why we started this company.”