Some VERY VERY interesting news from Google today. They just announced that today they will be releasing Google Checkout as a new online payment service, very similar to Paypal. However it comes with some huge twists!
To quote the article:
“Google will waive some or all of the transaction fees for companies that buy advertising from it.”
In more detail:
“For every $1 a company spends on search advertising, Google will waive the fees on $10 worth of purchases. Factoring in the 2 percent fee, that represents a rebate of at least 20 percent of advertising spending.”
To help with Google Checkout get higher sales conversions Google will:
“Advertisements on Google.com from companies that accept Google Checkout will display a small image of a shopping cart. Clicking on the ad will take customers to the advertiser’s Web site, as it does now. When customers decide to buy something, they will be offered the option to sign into Google Checkout and use the credit card and address information on file there. Customers that do not have accounts with Google will be encouraged to set them up.”
Considering the amount of money we spend at LandlordMax on advertising with Google Adwords each month, it definitely makes me think of what can and probably will happen. If I ever saw an incentive to use a product or service, this sure is one!
However before we jump on the Google Checkout bandwagon at LandlordMax, we’ll wait a little bit for things to settle down. When Google offered free analytics (which was done by buying a company that charged $500/month for the same package a year earlier), the demand was so great that they had problems with their servers and the metrics were many days late updating in the best of cases.
Anyways, it looks like Google’s jump into another market space is not going to be subtle. It’s going to be very interesting to see how it plays out.