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How does LivBetter make money?

Author: Info LivBetter Reference Number: AA-00236 Views: 5064 Created: 23/07/2014 16:10 Last Updated: 05/08/2014 11:07 0 Rating/ Voters

Philosophy:

The use of LivBetter is free to the person in need, the primary carer or anybody providing free support, such as family, friends or volunteers.  Providers can also promote their services free.

People who get a financial benefit from using the system pay fees as outlined below.  

Advertising:

All users of the system, consumers, service providers and hubs, are exposed to online advertising, unless they choose to subscribe to a Premium service to remove the advertising.  This Premium subscription costs $119.95 per annum (or $19.95 per month).

What Fees do we charge?

LivBetter charges a percentage-based fee on transactions for paid support activities and a flat fee for concessional or subsidised arrangements.


 

Fee and charges:

Paid support activities

Subsidised arrangements

New Client Set Up Fee (once off):

8%

$8.00

Commission:

2%

$2.00

Processing Charge (on total transaction):

 + $0.30

Paid support activities

For every paid support activity arranged by a client through the LivBetter system the service provider is charged the following fees:

·        Connection Fee: A once-off fee of 8% of the value of the service for new clients introduced to a provider through the LivBetter system. 

+       Service Fee:  Fee of $0.30 on every transaction (to cover financial and service fees).

+       Commission: A commission of 2% for every paid support activity arranged by a consumer with a service provider through the LivBetter system.  

Concessional services (including government-subsidised services)

For every concessional or subsidised support activity arranged by a client through the LivBetter system the service provider is charged the following fees:

·         Connection Fee: A once-off fee of $8.00 for new clients of a service provider, introduced to a provider for the first time through the LivBetter system. 

+       Base Fee: A service fee of $0.30 on each transaction.

+       Commission: A commission of $2.00 for every concessional support activity arranged by a consumer with a service provider, through the LivBetter system. 

How are fees paid?

LivBetter uses PayPal for its financial transactions.  PayPal is an internationally secure financial transaction processing system.  Service providers (including professional case managers or care coordinators) need to have a PayPal account, from which the appropriate fees are debited.

When are fees paid?

Fees are payable only when a service offer is accepted i.e. when providers get business, NOT for every offer they make. Hence this is a cost-effective way of promoting a service.

The Introduction Fee is debited (together with the Service Fee and first Commission) when the client accepts the service offer.  For re-occurring services, the Service Fees and appropriate commission are debited on the scheduled date of each service activity.

 

Examples

If a consumer accepts a specific offer for a $50.00 non-subsidised activity from a provider they have not engaged through LivBetter before, LivBetter will debit the provider:

·         Connection Fee (@8%):               $ 4.00

+       Commission (@2%):                     $ 1.00

+       Service Fee:                                  $ 0.30

Total: $ 5.30

The $5.30 would be automatically debited from the service provider’s account at the time that the consumer accepts the specific offer.

 

 

If the same consumer then arranges a new support activity for $50.00 from the same provider, LivBetter will debit the provider:

·      Service Fee:                                   $ 0.30

+     Commission (@2%):                      $ 1.00

Total: $ 1.30

The $1.30 would be automatically debited from the service provider’s account at the time that the service activity is scheduled.

 

 

If the same consumer is now able to arrange a concessional or subsidised service with the same service provider for $120.00 ($30.00 out of pocket and $90.00 subsidy), LivBetter would debit the provider:

·      Base Service Fee:                           $ 0.30

+     Commission (Flat fee):                  $ 2.00

Total: $ 2.30

The $2.30 would be automatically debited from the service provider’s account at the time that the service activity is scheduled.

 

 

If a NEW consumer now accepts a specific offer for a $120.00 subsidised activity from this provider (who they have not engaged in LivBetter before), LivBetter will debit the provider:

·         Introduction Fee (Flat fee):         $ 8.00

+       Service Fee:                                  $ 0.30

+     Commission (Flat fee):                  $ 2.00

Total: $10.30

The $10.30 would be automatically debited from the service provider’s account at the time that the consumer accepts the specific offer.

 

 

Setting up an account with PayPal is quick and easy.  After registering with LivBetter, service providers will be guided through the process when they first make a service offering.

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