Offering protection plans gives your customers peace of mind while providing you three key benefits: incremental revenue that goes directly to your net profits since warranties cost you $0 to produce, a third-party seal of approval that can increase conversions by up to 15% and spending by up to 14%, and competitive differentiation that leads to up to 16% higher customer retention and fewer negative reviews.

Attach rates vary by product category and price point, typically ranging 5-15% for most digital sales channels. With SureBright, you can expect a conservative average of 20%+ because of our specialized technology and seamless UI integrations. With proper positioning and education, rates can increase significantly further. Premium products and higher price points typically achieve better attach rates.

Net profit depends on commission rates, support costs, and volume. Typical scenarios yield 10-30% net profit margins after all costs. Higher volume and lower support requirements improve profitability. Factor customer lifetime value increases from warranty sales. SureBright provides transparent cost structures for accurate profit calculations.

Profitability thresholds depend on implementation complexity and ongoing costs. Simple integrations may be profitable with $1,000+ monthly revenue. Complex implementations may require $5,000+ monthly revenue. SureBright's streamlined implementation lowers profitability thresholds significantly, making warranties viable for smaller businesses with less overhead.

Revenue-sharing models split warranty revenue between merchant and provider based on who handles which parts of the customer journey. With SureBright, having partnered with 300+ merchants, we handle everything related to claims, customer service, tech, and regulatory compliance. You focus on sales and customer relationships while getting high revenue share. Plus, you receive customer payments directly with monthly invoicing, so you stay in control.

Warranties can be worthwhile for businesses with $50,000+ annual revenue, depending on product mix and margins. Higher-ticket items and electronics-focused businesses benefit earlier. SureBright's low-friction implementation makes warranties viable for smaller businesses than typically possible with other providers.

Warranty programs can increase business valuation through diversified revenue streams, improved customer satisfaction, and higher lifetime values. Recurring revenue aspects are particularly valuable. Implementation demonstrates business sophistication and customer focus. Document program performance for valuation discussions.

Larger businesses typically achieve better commission rates, more negotiating power, and lower per-unit costs. Volume thresholds unlock additional benefits and customization options. Economies of scale improve overall warranty program profitability as you grow.

Warranty revenue is typically taxable income when received. Service contract accounting may require revenue recognition over contract terms. Sales tax obligations vary by state and product type. Consult tax professionals for specific situations. SureBright provides appropriate tax documentation and accounting guidance.