Galaxy-News: Hi Nathaniel! Please introduce yourself to our readers.
Nathaniel: I'm a 27-year-old guy that lives in Raleigh, NC with my wife and four
kids. I've been mucking around with computers since I was 10, and
doing serious software development since I was 14. Not long after that
I got seriously interested in entrepreneurship, and have been working
on my own projects and businesses in one form or another since 2004.
In addition to Spreedly, I also own and run Terralien, a Rails-focused web design and development
shop. Needless to say, I stay pretty busy these days!
Of course, I'm only a small part of Spreedly - I like to call myself
the janitor, as I just take care of cleaning up whatever's left over
when everyone else is done. Also on the team is Duff, our main
developer; Alex, our designer (you might know his work from Weewar);
and John, who does security and system administration. One of the
really fun parts of doing a startup is getting to work closely with
other passionate people, and that's certainly been our experience with
Spreedly.
Galaxy-News: Could you give us a brief description of the services Spreedly
is offering.
Nathaniel: Spreedly's all about subscription management, which basically means
our software helps entrepreneurs and business owners set up
subscription plans, sign users up for subscriptions, and manage their
subscriber base over time. Our goal is to be as invisible to the end
consumer as possible, and instead really focus on making it drop-dead
simple for businesses to turn their hard work into real income.
One thing I want to clarify before moving on is the word
"subscription". A lot of people think "automatically recurring
payment" when they hear that word, but in our view a subscription is
much broader than that. Any time you pay money to get access to a
service for a given period of time, you've "subscribed", whether that
subscription auto-renews or not. It turns out that when Weewar first
started taking payments via Spreedly, we didn't support auto-recurring
subscriptions at all. We've since added that functionality as it's
very important, but it's not fundamental to the subscription model.
Galaxy-News: When and why did you come up with the idea to create
subscription-based payment solutions for websites and web games?
Nathaniel: The work that I do as part of Terralien is often with startups, and
many of them have a need for subscription management. After
implementing Paypal's subscription "solution" for a client and getting
very frustrated with how awful their programming and user interfaces
were, I was left muttering to myself that "there has to be a better
way." A quick follow-on realization was that there are literally
thousands of businesses that have implemented nearly the same logic
for subscription management, all with varying degrees of robustness
and feature richness. There was clearly a spot in the market for a
simple yet robust platform that all of these sites could use, and a
quick look around came up with a very limited set of alternatives. So
I grabbed the best developer, designer and system administrator I
knew, and said, "Let's build this thing!"
As a business owner myself, Spreedly's value really boils down to one
thing: it allows creators to focus on what they're good at and what
they enjoy instead of on the nitty-gritty of collecting money and
managing subscriptions. As an avid Weewar player, for instance, I know
I want them to be spending their time making Weewar a better gaming
experience, not on figuring out how to collect subscription fees from
their players. And that's exactly what we've seen happen since getting
Weewar using Spreedly.
Galaxy-News: The payment options needed within the web gaming markets can be
different from game to game. What solutions are you supporting and
are you able to offer individual solutions designed to exactly fit
to each type of game?
Nathaniel:
Every business is certainly different, but we've found that their
needs in subscription management are awfully similar. That's one of
the reasons we built Spreedly - it just seemed silly for everyone
(including ourselves) to keep inventing the wheel over and over again.
So the first thing we do in any situation is try to figure out the
simple solution that will fit for the majority of our clients. If we
then find that there's still a large number of clients that need
something different, we come back and build in the ability to tweak
the feature.
One thing to emphasize here is that we've built a best of breed API
(Application Programming Interface) for our clients to use when
integrating Spreedly into their site. It's lean and light, it offloads
the hard work on to Spreedly, and yet it gives the client a lot of
flexibility in how they decide to tie in to our service. What this
means is that even in the cases where we might not support a feature
that's really important to a given client, they can often easily
implement that feature themselves and tie it in to what Spreedly
provides.
So to answer your direct questions about individual solutions, the
answer is a qualified "no". No, we don't plan on doing custom
implementation work for individual clients, but in the end we really
don't see that being a problem for 99% of clients due to our top-notch
API.
Galaxy-News: Are service users able to integrate localized payment options
e.g. PayByCall or eBank2Pay are popular in Europe, whereas credit
card payments are dominant in North America.
Nathaniel:
Currently we only support using a Paypal merchant account, which is
kind of ironic since Spreedly was originally conceived as a reaction
to Paypal's incredibly annoying subscription solution! Even so, Paypal
has a huge user base, and we recognize that it's one of the easiest
kinds of merchant accounts for many new businesses to get. (And just
to clarify, subscribers to Spreedly-powered services do *not* have to
have a Paypal account, they can pay directly via credit card and never
see Paypal).
Of course, Paypal is only the beginning, and one of the things we're
hoping comes out of the latest round of invites we sent out is
feedback about which payment solutions are most important for us to
implement next. We're using some excellent underlying software for
actually interfacing with payment solutions, so adding new ones is not terribly
hard. That said, it's important to keep our focus and make sure we're
adding what's most in demand.
Galaxy-News: How can you cope with possible hacking attempts? Is Spreedly
able to protect private data and can you guarantee an adequate
security?
Nathaniel:
This really highlights one of the major advantages we see to using
Spreedly: we focus on security so our clients don't have to. Security
is at the forefront of our minds as we implement each component in the
system. Even more importantly, we have the time and motivation to
implement security, where many of our clients simply do not.
While no system can guarantee absolute security, Spreedly uses the
Payment Card Industry Data Security Standard as a foundation for
implementing security. The PCI DSS includes requirements for network
architecture, software design, policies, procedures and much more. By
implementing these requirements and adding in a good dose of our own
paranoia, Spreedly is constantly working to safeguarding our clients'
data.
Galaxy-News: Let's say a developer is interested in your services. What kind
of costs would there be? What would a bill look like?
Nathaniel:
First of all, every account comes with a test site and a production
site. The test site is exactly like the production site except it uses
our internal test gateway. This means you can easily check out the
service, get it all integrated in your staging environment, and
generally kick the tires without paying a dime.
Once you're ready to start collecting real fees, you simply activate
your production site, configure a few things, and you're ready to go.
From then on you'll be charged $19/month plus transaction fees, where
the transaction fees are 3% of the first 50 transactions, 2% of
transactions 51-5000, and 1% of every transaction thereafter. A
transaction is simply anytime you charge a subscriber money: initial
signup, subscription renewal, plan upgrade, etc.
Galaxy-News: Thanks ever so much for you time and good luck with Spreedly!
Nathaniel: Thanks so much for the interview! As you can imagine, we're
super-excited to get the word out about Spreedly. One of the things we
all love about the project is that it fuses our technical skills with
our passion for entrepreneurship and helping out other entrepreneurs.
For those interested in getting their games/businesses using Spreedly,
we have an invitation signup on our homepage. We'll be sending out the next round of invites before you know it, and
we can't wait to get even more business up and running on the Spreedly
platform!
To check out Spreedly yourself visit: Spreedly.com
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