The short answer: yes, if done right. Most merchants see immediate ROI because warranties are pure profit - you're selling protection you don't have to deliver yourself. Calculate your potential: Average Order Value - Expected Attach Rate - Your Commission - Monthly Orders. With SureBright, there's zero upfront investment and no ongoing tech work required. We handle everything from implementation to customer service, so you focus on what you do best - selling products. Our ROI calculator shows most merchants break even within the first month.
Protection plans create a win-win scenario that strengthens your entire business. First, you generate incremental revenue with zero product costs - it's pure profit margin improvement. Second, offering protection actually increases customer confidence in your products, boosting conversions by up to 15% and average order values by up to 14%. Third, you differentiate from competitors while building stronger customer relationships. Protected customers stick around longer (up to 16% higher retention) and leave better reviews because they feel secure in their purchases. It's like adding an insurance policy to your customer relationships.
Industry averages range from 5-15%, but well-implemented programs consistently outperform these benchmarks. With SureBright's specialized technology and seamless integrations, merchants typically see 20%+ attach rates from day one. Higher-priced items and electronics categories often achieve even better performance. The key factors are smooth user experience, clear value communication, and strategic placement in your checkout flow. Our data shows proper positioning can double attach rates, making the difference between a mediocre program and a profit driver.
Your real profit depends on commission rates and volume, but most merchants see 10-30% net profit margins after all costs. Here's what makes warranties particularly attractive: there are no inventory costs, shipping fees, or product development expenses. With SureBright handling all customer service and claims processing, your only "cost" is the revenue share. Plus, warranty customers often have higher lifetime values and make repeat purchases more frequently. Many merchants find warranty profits fund their marketing budgets or become their highest-margin revenue stream.
Warranties can be profitable surprisingly quickly. With traditional providers requiring complex integrations, you might need $5,000+ monthly revenue to justify the effort. But SureBright's streamlined approach makes warranties viable for businesses doing just $1,000+ monthly revenue. Since there's no upfront investment or ongoing maintenance required, your first warranty sale starts generating profit immediately. The break-even calculation is simple: your monthly commission needs to exceed the time investment, which is typically minimal after the initial setup.
Revenue sharing is straightforward: you keep a percentage of every warranty sold, and the provider handles everything else. With SureBright, you receive payments directly from customers and get invoiced monthly for our services. We handle claims processing, customer service, technical infrastructure, and regulatory compliance - you focus on selling and maintaining customer relationships. Having worked with 300+ merchants, we've refined this model to be transparent and profitable for partners while ensuring customers receive excellent service throughout their warranty experience.
Size matters less than product fit and execution. Businesses with $50,000+ annual revenue typically see meaningful impact, especially if selling electronics, appliances, or higher-ticket items. However, SureBright's streamlined approach makes warranties viable for much smaller businesses than traditional providers allow. The key factors are average order value and customer purchase frequency. Even smaller businesses can succeed if they're selling products customers want to protect and have sufficient transaction volume to generate meaningful warranty revenue.
Absolutely. Warranty programs enhance business valuation in multiple ways: they create additional revenue streams that aren't tied to inventory or manufacturing costs, demonstrate sophisticated customer relationship management, and show recurring revenue potential that investors value highly. They also improve key metrics like customer lifetime value and satisfaction scores. When preparing for valuation discussions, warranty programs showcase business maturity and diversified income sources. Many acquirers specifically look for businesses with multiple revenue streams and strong customer protection offerings.
Growth creates compounding benefits in warranty economics. As your volume increases, you gain negotiating power for better commission rates and unlock volume-based incentives. Larger businesses also get access to customization options, priority support, and enhanced reporting tools. The fixed costs of program management become smaller relative to revenue, improving overall profitability. Most importantly, warranty data becomes more valuable for business insights and customer behavior analysis. Higher volumes also mean better attach rate optimization opportunities and more sophisticated program management.
Warranty revenue is generally treated as taxable income when received, but accounting treatment can vary based on your business structure and local regulations. Service contracts may require revenue recognition over the contract term rather than upfront. Sales tax obligations differ by state and product category, adding complexity to compliance. The good news: SureBright provides proper tax documentation and works with your accounting team to ensure compliance. We recommend consulting with tax professionals for your specific situation, but our experience with hundreds of merchants helps streamline the process.
