So why does it say...
The Customer signs an application agreement which includes the obligation to pay a monthly $1,000 fee for 12 months membership, contingent upon the Customer accepting the Video (Membership Fee)?
................
The way I see BRTV selling this product is simply...
we can offer you a $12,000 credit line, that is interest free for the first 12 months, paid at $1000 month for 12 months (as your membership period)and includes payment of your video package.
Note: ********BIG would want the facility to be as high as possible because they are upfronted 35% for cashflow.
Some packages are only $500p.a
Are you telling me 35% or $175 covers the cost to produce the video?
No, that is why the BRTV sales team do all they can to
a) sell a package under finance and
b) sell one at the maximum approved limit set by FCC.
So BIG would then issue FCC a customer application agreement for the full $12,000 as this is what they are applying for, not just $4000 for a video package.
As a counter argument:
I guess FCC could wear the remaining $8000 as a no interest charge facility for the (first 12 months only) so repaid in full within 12 months hence $1000 month repayment and for that FCC get to put their heads on the videos, and have a new client.
Assuming BRTV only pay interest or commission on the video portion, and FCC give the client a 12 months to pay option on the full $12,000, advanced, If average "financed package" is $8200 then FCC would have received $1968 commission which is still 16%p.a return on the full $12,000.
For this it gets them a client, gets them advertising on the videos, and 16% ROI minimum.
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