When you’re building a business, one of the most important aspects is getting the right bank account. It’s no secret that having a good bank account is vital for early success, and a lot of businesses don’t seem to realize the importance of this step until it’s too late. With so much competition, it’s also important to find ways to stand out from the crowd, and having a unique bank account number can help provide the necessary differentiation.
When you create a new account with a startup package from ClickFunnels, you’ll notice that they provide you with a specialized bank account number, which is different from the account number you’d typically use. With this in mind, let’s dive into the meaning of this number and how it can impact your business.
A Specialized Bank Account Number
Before we dive into the specifics, let’s discuss what a specialized bank account number means. A specialized bank account number is typically used by companies that deal with a lot of revenue, or produce lots of cash. These are the types of companies that stand out from the crowd, and thus require a specialized account number for transactions made with credit cards or other financial instruments.
When you open a business bank account, you’ll be asked to provide a lot of information regarding your company, like your Tax ID number, your bank account number and routing information. In most cases, the bank will also ask you to provide a business license number and the official name of your business. With this information, the bank can then issue you a business debit card, which you’ll use to make transactions.
Now that you have a business bank account, you’ll need to set up automated, online business financial transactions, which most banks offer. These services are called e-billing and can be set up for free with most banks. With e-billing, you can automate the process of paying your bills, so you can spend more time focusing on growing your business.
The Key Benefits To Having A Specialized Bank Account
Now that you have a business bank account, you’ll need to familiarize yourself with the key benefits that come with this type of account.
One of the primary benefits of having a specialized bank account is the fact that it’s quite easy to process credit cards and other forms of payment with this type of account. The account provider’s representatives are generally more familiar with these types of transactions, so the process goes more quickly and smoothly. Furthermore, a lot of the time the business owners that use these services say that the amount of credit cards they accepted for processing increased after they established the business account.
Another benefit is the reduced fees associated with this type of account. Many businesses that can benefit from this type of account don’t have enough money in their general account to cover the fees associated with credit card processing, so they’re relieved of this burden. Furthermore, a lot of banks that offer this type of account will waive the monthly service fee as long as your account is open and active.
In conclusion, having a specialized bank account can be extremely beneficial for your business, especially if you’re looking to increase your acceptance rate of credit cards and other types of payments. In most cases, there’s no additional cost to having this type of account, and the benefits far outweigh the minimal investment required.
How Does the Startup Amount Factor Into This?
Now that you know the key benefits of a specialized bank account, let’s discuss how this relates to the startup amount you enter on your funnel. Basically, the more you put in, the bigger the refund. It’s important to understand the math behind this to see why this is the case. When you create a funnel, you’ll choose a starting price, which is the amount you’re charging for the product. Once you’ve sold the product and collected the money, you’ll be able to claim a % of what you originally charged for the product plus a fee for processing the payment.
Let’s say you sell a $50 item with a 10% success rate and you charge a $5 processing fee. Your net profit would be $45. In this case, you’d pay $5 for the credit card processor, and then $45 will be deposited into your account.
Now let’s say you decide to try a $100 item with a 15% success rate and a $5 processing fee. In this scenario, you’ll pay $15 for the credit card processor, and then $85 will be deposited into your account.
If you’re wondering how this relates to the specialized bank account, let’s break it down. The more money you spend on the funnel, the bigger your refund. This is because the more you spend, the greater the chance you’ll make a sale. When you make a sale, you’ll be able to claim a % of what you spent plus a fee for the processor.
As you can see, it’s possible to have a refund amount equal to or greater than what you originally charged for the product. All you need is to create funnels for products with relatively high conversion rates and claim your full refund.
Why Should You Care About Refunds?
In most cases, refunds are the result of something that wasn’t communicated effectively during the sales process. To avoid this, make sure you clearly explain to customers the difference between the final price they’re going to pay and the price they were originally quoted. If you do this effectively, refunds are quite rare and customer satisfaction is significantly increased.
Another great way to increase customer satisfaction and loyalty is by offering frequent rewards or discounts for customers. For example, if you have a $100 retail store and you decide to give a $20 discount to customers who spend $300 or more, you’ll see a significant increase in customer loyalty. The customers will appreciate the discount, and it shows that you care about their spending habits.
The Final Takeaway
In closing, make sure you have funnels for all of your products, which are built with a high degree of efficiency. When you do this, customers are more likely to make a purchase and the chances of a refund are significantly decreased. Furthermore, it’s quite easy to set up automated online payments with most business bank accounts, so make sure you put this to good use. The more you use it, the more you’ll realize its benefits. In most cases, there’s no additional cost to having a business bank account, and the benefits far outweigh the minimal investment required.