You can access the new settings from your dashboard by clicking on the “Exchange Settings” link. The price for buying credits is fixed at a low of $10. Selling credits has a lower fixed rate of $8. The system will be an automated system, and require a Paypal account to participate. The following warning is given at the top of the page
We are not currently performing trades, we are collecting information regardingly likely pricing. Please set your prices realistically - there may not be a warning before this goes live. “
No need to worry until you enter your Paypal details. My guess is initially everyone will be selling at the minimum with nobody buying. People will be even less likely to spend money on advertising in hopes of selling their credits later. It won’t be until ad bidding is introduced that something exciting can be purchased for credits. Seeing how eBay sales have been priced around $7.50 per 1000 and widget sales around $10 per 1000 credits, Entrecard is setting the bar high. This is good initially to prevent the market crashing. It also allows 3rd party sellers like myself to offer a choice outside the system. Below is a copy of the FAQ for those without an Entrecard account:
Entrecard Credit market FAQ
Why would I buy/sell credits?
You would buy or sell credits in the event that you found yourself with more than you could usefully use, or alternatively needed some for advert purchases, shop purchases, prizes etc and did not wish to spend time and effort dropping cards.
What prices should I set?
You should set the prices you are comfortable with. This market will not make you rich, no matter how good a guess you make at your pricing.
When will my credits be sold/bought?
The system matches bids and offers automatically. Your credits will be sold or bought when an appropriately matching bid/offer is available
Will all the credits I offer for sale be bought?
Not necessarily. If you offer 10,000 credits but there are only matching bids (or an allowance limit) of 2,000 credits, only 2,000 credits will be sold and the remaining 8,000 will remain listed.
Market limits?
Entrecard limits the number of credits that can be bought/sold per day in order to ensure market stability. As the day progresses, additional allowances are released. The bid matching system then starts with the highest priced buy prices and sell prices and starts exchanging credits until the allowance is met or no more compatible bids and offers are available.
Does Entrecard take a percentage?
The matching system matches sell prices at a specific percentage lower than the buy price. This percentage, which changes on occasion, is kept by Entrecard. Neither buyer nor seller is specifically taxed, there’s simply a margin in the transaction.
Can I tell who I bought from/sold to?
No, credit trades are anonymous although Entrecard retains records of the buyer and seller.
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11 users commented in " Entrecard Begins Credit Exchange Test "
Follow-up comment rss or Leave a Trackback **********I’m going to take all of my millions and buy up all the credits to-date and then never use them, or have like a year-long raffle for 1 million E.C. just to highlight the absurdity of it all.
When Neiman-Marcus starts accepting E.C., then I’ll take a second look. But we can dream, can’t we?
Yes we can dream Sam. Actually, you can spend the credits now that the shop’s been cleared of most of the “out of stock” crap. I sell t-shirts, someone else sells webcams, and Adtoll sells advertising on their network. You still can’t pay for your vacation using Entrecredits, but someday…
As a former economist, I think that Entrecard may be on to something here. In uncertain times, even slight innoveation can light the way to better solutions to problems we all face. Entrecard is more than that, though. Entrecard is exploring the limits of what an economy can be. We can only benefit from trying.
I’m hoping it doesn’t eliminate the small shop owner. I see you’ve already dropped your 1000 price. I can assume this was because of the exchange, right?
I dropped it before the announcement because sales dropped off. Im not sure what to change it to once the Entrecard stuff goes live.
Great. Now more people are gonna game to system just to make a buck.
EC is getting more complex each day…
I have never purchased EC credits and don’t plan to anytime in the future.
This will be one EC venture that I don’t think I’ll be a part of.
In looking at all the people who sell credits and/or trade them, they all seem to be in the “internet marketing” niche which I am not.
I just fail to see how a non-niche blogger such as I am could benefit by this.
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I wonder just how many people will bank their credits instead of investing on advertising.
I think the whole ad prices need to be adjusted, at least in comparison to the amount of credits currently in people’s accounts. If the prices aren’t high enough, then soon everyone will have a lot of credits, which will cause their value to go down.
The people who undercut the market with their credit firesales may end up looking foolish in the long run. Its either that, or no credits ever sell. I can’t wait to see how this goes.
[...] Entrecard Begins Credit Exchange Test You can access the new settings from your dashboard by clicking on the “Exchange Settings” link. The price for buying credits is fixed at a low of $10. Selling credits has a lower fixed rate of $8. The system will be an automated system … [...]
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