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Questions in selling lowend boxes to Chinese Customers
As editor of 91yun, a 26k PV a day Chinese hosting review site, is always asked by providers how to expend market to China. Here are some frequent asked questions and if you have more questions, you can let me know and I will try to answer. )
- Paypal disputes.
For paypal disputes, Chinese providers also cannot tolerate. So, you can see some Chinese Providers on LET like ZeptoVM, Pumpcloud has removed Paypal support - Credit Card, Alipay and CryptoCurrencies ONLY.
- Offer Lowest end boxes
What is the most popular products? In Xmas 2015, Alpharacks offered $2.99/yr 64MB box, Virmach offered $3/yr box. Something dirt cheap box is really cheap.
- What virtualization should we use?
KVM for sure, so clients can depoly BBR/LotServer on the instances.
- Shall we choose DCs have good connection to China?
Thats not necessary, some DCs, like Quasi in Netherland, which allow clients to host "Disney Films" and never took down, will also welcome to a special group of users. However, connection to China is also very important, but also very fierce competition. Quadranet maybe the most popular DC for Chinese customers, but price are dirrrrrrrrt cheap (You can even find some box lower than $1/mo ). Also some other DCs, mostly located in California (Like eSited, ColoCrossing, Psychz, Zenlayer, GlobalFrag, MultaCom, etc.), sell well too. Asia and Fareast in Russia Locations with China Telecom/Unicom/Mobile peering will much more better. If you want to test network from China, you can try www.ipip.net/ping.php or ping.pe.
- Affiliates?
What makes affiliates successful in Chinese Market? High payout rate and instant payment, Bandwagon Host is the best example, 22% commission rate and instant payment via Paypal. Personally I don't care but the community cares.
Comments
TL;DR
Get rid of PayPal because Chinese customers will always abuse it, price your plans unsustainably and if you can’t have good routing to China, you can get by with by disrespecting copyrigh notices.
Edit: oh, and pay out immediately on affiliate plans so they can have the crap abused out of them.
Enticing, no?
I tried using Alipay. For US merchants, their withdrawal platform is pretty stupid imo.
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If you would like to receive the settlement fund by period, we can also remit the fund to you by week, month, or quarter.
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Please note that there will be an additional fee of 500 USD/year, 200 USD/year, or 100 USD/year respectively for the service. And the minimum remitting amount will be reduced to 100 USD or equivalent.
It's not exactly like I want to front $5,000 worth of low end boxes to the Chinese market before I get any sort of payout. So yeah, no more Alipay gateway from me.
Very useful guide ,Thanks for sharing XD~
6666666~ 狂拽炫酷屌炸天~
For those often in and out of China, get a bank account in China - you can then receive money by WeChat Wallet. I think it's nearly free - and no chargebacks! (as far as I know)
Only Problem: you need to get cash to bring it out of the country. Legal limit is RMB20,000 - it's not really checked though. Easy to convert to other currencies in Hong Kong.
Not that easy for foreigners without a Residence Permit.
One more tip, don't do NAT offers for Chinese customers, the IPs are outright blocked.
Another tip: if you’re going to change business practices outright just to appeal to a single market, make sure you’ll see the return you need to keep going or it just might not be worth it.
I am foreigner without res permit and opening accounts (ICBC and CMB) in Shenzhen was no problem. Not sure if anything changed in recent years though. If in China anyway it's worth a try.
Either this was long ago or you already had a non-tourist visa (from an embassy, thus linked to your name, chinese registration ID - not the normal ID, internal only - and your passport number).
With a non tourist visa (except diplomatic) you are registered with the gov on entry (and SHOULD register on your living place), this is enough in most cases for the state banks. The registration process is automated once your passport is scanned and you get a log of entry/exit and (if any) internal checkpoint crossings if your visa permits it (inner Mongolia, Tibet).
The banks check your name (or, if you have one, ASEAN ID/number) and verify by this in conjunction with your normal ID (passport is fine). ASEAN citizens/companies also qualify for certain easements for business accounts.
Someone with a normal tourist visa does not simply get a bank account (i tried years ago by a day trip from HK, was pointless), in SZ at least. Maybe in SH or BJ if you have a lot of money.
Commercial banks might operate different (actually certainly do) but one can, as always in CN, assume they are more strict with foreigners than the gov institutions (especially if you come on a highly skilled/R visa).
It's not checked IF YOU ARE NOT ASIAN AND ESPECIALLY NOT CHINESE.
Bringing in unregistered money as citizen (and even resident obviously, but ignored) can get MAJOR trouble.
This advice also really varies, on a high volume day on SZ-HK you likely get zero customs as EU foreigner, same as "rich" looking in SH or BJ. If you are Vietnamese citizen and enter by ship... yea, no.
Some source countries, as always, also get checked nearly automatic (same as in EU, fly in from South America and you WILL get a tear down) so that might yield more risk.
Overall one could also, like, register the money with the gov - there should be no tax on it as foreigner, especially if you want to spend it in China while not staying yourself (thus, business/commercial travel).
How about differing laws and inability/lack of desire to read the host's terms of service?
The laws are less issue, some just don't care at all. They assume (right so) to be safe in China from pretty much anything even if it is clearly illegal there (let's say spam).
Chinese in this regard have always been less issue for me, Brazil is far worse.
CN unlike Brazil/other high risk countries tend to also - by lack of payment method local - pay in harder to reverse services, so i always did end well with cancelling on ToS violation and keeping the money (no, this is not criminal in any way if properly noted and documented).
@William
I have a business visa, not sure about other visa. My experience in China is, 5 people do exactly the same thing get 5 different outcomes.
Some month ago I went to China with RMB 20,000 - it's about the size of brick - and i was checked - they found the money but didn't say anything at all, didn't even count it. I think the 20,000 rule starts if you have substantially more. Check when you leave a less tight. And you are right, local have much less margin.
Anyway, those who think WeChat Wallet can help them and are in China anyway can try a few banks. Nothing to loose.
Yea, as you know this is pretty much standard anyway, CN being CN even in the Tier1 cities... as always having a local (or at least Chinese speaker) solves next to anything, not sure for T2/3/rural but most in SZ/T1 is communication issues and the gov is generally foreigner friendly/"welcoming" and willing to assist.
I never deal/dealt with RMB due to the fakes mostly but i think, like most communist oriented countries, CN has export regulations on currency but not much back in; so local currency cannot easily be exported in higher amounts (they want you to exchange on the gov rate, then bank/cash export, this is better for the economy as they can fix the rate mostly) but they gladly take it back in (usually there is another law that forbids trading of local currency foreign, so you can hardly exchange it, like Cuba).
Importing high amounts of foreign cash, especially Euro and Dollar followed by HKD, hardly bats an eye on business visa - same in EU, yes there is the 10k limit but this is in 98% of cases merely formality to record, they don't care TOO much where it comes from if you don't enter from Nicaragua or Lebanon.
Overall this all makes sense - foreigners on business visa will not likely stay, will spend money or need this for contracts but want to avoid the banking system (which the gov does not care about either way, it clearly targets local even in business) or open an account now and add the money. This is not taxable money as income (and the carrier is not taxable in CN either), it is not imported goods and targets an export business, exactly what CN wants for the economy.
For bank probably know more in Feb, need to go anyway near and considering the massive scale SZ changed for the better (while HK for worse) i need to see that again anyway, by now the subway system is longer than some entire countries have :')
I think you're a strange person. You've created a discussion group and you usually send stupid person orders information. I know your strategy. You only see the rich. It's your personal interest, but you look down on those rookies, look down on those stupid people, laugh at or insult them. What do you get? 91yun get out！
It's a weird thing but you should know how it works; Chinese services are profit oriented and make no secrets out of this either, high aff payout will get you better listed on 91yun and others.
Also no secret that they and others primarily mean trouble due to this and the generally abusive usage nature of their users (CPU mining and crap).
Overall they are not far from how LEB operates either, both in selling ad/post space and user practices causing ISP issues.
No thanks.
Holy shit, is this a campaign to convince providers to block all clients from China? This thread does not paint Chinese clients in a good light at all. I have a ton of clients from China and a good majority of them have been great, but if they were like the OP depicts them I would have closed up shop ages ago.
I don't know if it's a language barrier or not, but @singhigh your post reads as really bad and scary for providers to accept Chinese clients. Surely this was not your intention but you basically just said:
"Want to get more Chinese clients? Don't accept payments from PayPal because they love opening disputes. Sell your services lower than you can afford to, they love unsustainable plans on KVM because it lets them abuse your network easier. Also be sure to pay them A LOT to be a client, they love it when you lose money while the DMCA takedowns roll in."
Your clients are not from 91yun and this sort of sites, you get the quality ones essentially.
If you're trying to target the Chinese VPN market then they're going to keep moving to your smallest plan, so keep that in mind. It takes a long time for them to start trusting you with anything more important than that.
While the VPN market isn't bad, you need a lot of IP's to keep up with it. You'll plow through a /24 on a box and not make tons since you're selling < $10/year services for the signups.
Francisco
Good summary!
I understand the OP intentions are good, but either the patrons of 91yum are dreaming, or the OP is saying the patrons could care less about the Providers, or both!?! LOL
What is the point then? Might as well, provide free services with no TOS, because that's what they are interested in! Otherwise, how would the Provider protect their network and business?
It's a bit insulting to read as a Provider.
The Providers should create a check list that a Chinese Client should complete prior to ordering. The first thing on the list would be READ THE TOS! LOL
....actually, forget the list, just refer to FraudRecord, it already exists.
This is pretty much what @KuJoe does.
You said something, you said nothing.
Blind recommendation, and then abandoned. Can be said to be off bitch?