That's a shame, but it seems like it's enabling resellers to charge 25% margins. I don't see those margins being competed out.
Imagine you have services that the end-customer has subscribed for. Some of them are billed weekly, some monthly. Some of the monthly ones are billed the middle of the month based on usage, and some at the week following the month's end based on a mix of monthly subscription and overage.
When a specific invoice that has the potential to vary greatly from period-to-period, you might encounter cases where you have to pay for an invoice that was twice the amount of last month, but you will only be billing your end-customer 20+ days from now! This means that you have to either foot the bill, or wait a little bit and keep the amount in your balance sheet.
When you scale up, you are essentially providing a financing product. You can counter this by asking the users to deposit an amount equaling the base subscription or other service fee, but you can still run into cases where you might simply be cash-strapped to pay your clients' bills; this would put the hypothetical reseller into essentially what's a bank run. Not fun.
Imagine you have services that the end-customer has subscribed for. Some of them are billed weekly, some monthly. Some of the monthly ones are billed the middle of the month based on usage, and some at the week following the month's end based on a mix of monthly subscription and overage.
When a specific invoice that has the potential to vary greatly from period-to-period, you might encounter cases where you have to pay for an invoice that was twice the amount of last month, but you will only be billing your end-customer 20+ days from now! This means that you have to either foot the bill, or wait a little bit and keep the amount in your balance sheet.
When you scale up, you are essentially providing a financing product. You can counter this by asking the users to deposit an amount equaling the base subscription or other service fee, but you can still run into cases where you might simply be cash-strapped to pay your clients' bills; this would put the hypothetical reseller into essentially what's a bank run. Not fun.