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"Pay Me Later" - Will This Tactic Increase Conversion or Open For Abuse?

by fated82
21 replies
I saw this technique implemented on Google Sniper 2.0. On the sales page, Google Sniper goes for $47. But if you click the close button, an exit pop up appear, telling you that you can get Google Sniper for just $1 and pay $67 5 days later.

It certainly can increase conversion but is it also open to abuse? Paypal allow the buyer to cancel 'subscription' so I am not sure how well this tactic will work.
#$46 #abuse #conversion #days #increasing #open #upfront
  • Profile picture of the author Sarah Russell
    Certainly there's the potential for abuse, but the window seems short enough that at least a good percentage of people will sign up and forget to cancel within the 5 days. This isn't that different from other sites or membership programs that offer a free trial and begin charging after a set period of time.

    The thing I'd be curious to know is whether or not he's restricting access to some content until after the 5 day window has passed or if people have access to everything up front.
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    • Profile picture of the author fated82
      Originally Posted by Sarah Russell View Post

      Certainly there's the potential for abuse, but the window seems short enough that at least a good percentage of people will sign up and forget to cancel within the 5 days. This isn't that different from other sites or membership programs that offer a free trial and begin charging after a set period of time.

      The thing I'd be curious to know is whether or not he's restricting access to some content until after the 5 day window has passed or if people have access to everything up front.
      I don't have any idea about that but what is interesting is that on the landing page, he sells the product for $47 (one time) and on the exit pop up page, he sells it at $1 and $67 five days later.

      I think that is a strategy to recoup those he lost in the abuse (my POV). Also, because he is using clickbank, buyers are still covered with the 60 day money back guaranteed...(I feel it give prospects a sense of risk free protection twice)

      I am tempted to use this tactic for one of my product....
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  • Profile picture of the author pdrs
    No different than requesting a refund on clickbank. This probably helps to weed out a lot of the refunders anyways and is a great way to show your customers that you're providing value to them.

    As long as your product is strong I think it should work fine.
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  • Profile picture of the author Sarah Russell
    Ooh, interesting - I didn't know he was jacking up the price compared to the sales page. My only concern is whether or not people would feel ripped off if they wind up paying the $67 vs $47, but it'd be interesting to test for sure.
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  • Profile picture of the author RussRuffino
    I'm really interested to know if anyone has split-tested this kind of sales funnel. The potential downsides that I see aren't just that your cancellations will go through the roof, but also that potential affiliates might be put off.

    Does anyone have hard numbers on this?

    Russ
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  • Profile picture of the author theemperor
    No abuse possible :-) - just have a remote-activation licensing model set up. If they cancel the software gets deactivated.

    No different to a trial version.
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  • Profile picture of the author fated82
    Ok, I have set it up and drive Google traffic to test this tactic for a week....Will get back with the results
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  • Profile picture of the author VOnline
    Subscribed. Definitely want to see how this turns out.
    I think it could be abused.

    BUT, others may see the $1- pay later as a scam and just leave still.
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    • Profile picture of the author Mohammad Afaq
      Well it's no different that offering a $1 for 7 days (or anything else) trial.
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  • Profile picture of the author InternetSuccess001
    Many people are lazy, and won't cancel within that time frame. The 'goal' is to get people 'over' the fear of signing up. Some will abuse it, but then they wouldn't have purchased it anyways.

    Overall, I say it is a tactic that generally sees an increase in sales.
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    • Profile picture of the author WillR
      Originally Posted by InternetSuccess001 View Post

      Many people are lazy, and won't cancel within that time frame.
      In what timeframe, the week? Yes that may be so, but they still have 60 days to cancel as per Clickbanks refund policy.

      I think the $1 deal is still going to attract a lot of freebie seekers who will ask for a refund over the next few weeks.

      I think something else worth testing would not be the $1 and then jack the price up to $67, but instead to offer it to them for $27 up front and then $27 in a few weeks time. This is just a simple payment plan type situation.

      They are spreading the payment out and risking less upfront but they will end up paying $7 extra for the convenience.
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  • Profile picture of the author RussRuffino
    Once again, has anyone tested this?

    What I mean is, has someone offered a $27 ebook (or whatever) and then done a split test where the person pays $1-5 up front and then gets charged the rest 7 days later?

    If anyone has some hard data on this, I would love to see it. OP, thanks for saying you'll test it - just want to see if anyone has already.

    Russ
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  • Profile picture of the author Nick Sammut
    it can be abused, but these guys are making so much money they could not care less if a few people abuse them
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    • Profile picture of the author digitaldna
      like spearhead says: "spend it today and we'll bill ya tomorrow"
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  • Profile picture of the author fated82
    Below are the sales page I created (can critique if you want to) but Google doesn't seem to accept both of them....Any other alternative for Ads (No Solo please)

    - Supposedly for Google Ads
    - Redirect after they signup
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    • Profile picture of the author WillR
      Originally Posted by fated82 View Post

      Below are the sales page I created (can critique if you want to) but Google doesn't seem to accept both of them....Any other alternative for Ads (No Solo please)

      - Supposedly for Google Ads
      - Redirect after they signup
      What do you mean Google doesn't accept both of them? Google Adwords?
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      • Profile picture of the author fated82
        Originally Posted by WillR View Post

        What do you mean Google doesn't accept both of them? Google Adwords?
        Hi WillR, yes, Google disapprove my ads based on 'site policy'....Think the landing page may have trigger a red flag for unknown reasons
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        • Profile picture of the author WillR
          Originally Posted by fated82 View Post

          Hi WillR, yes, Google disapprove my ads based on 'site policy'....Think the landing page may have trigger a red flag for unknown reasons
          I thought Google hates sales pages like those?
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          • Profile picture of the author Danny McConnell
            The $1 trial is just another version of the bold face "money back for any reason" guarantee.

            You have the buyer on your sales page and he is leaning toward purchasing. It is better to allay his fears and get him to buy the product while you have his attention than to hope he will remember you fondly and come back later. Even if half of them cancel you are ahead of the game.

            Dan
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            • Profile picture of the author paulie888
              Originally Posted by danleigh57 View Post

              The $1 trial is just another version of the bold face "money back for any reason" guarantee.

              You have the buyer on your sales page and he is leaning toward purchasing. It is better to allay his fears and get him to buy the product while you have his attention than to hope he will remember you fondly and come back later. Even if half of them cancel you are ahead of the game.

              Dan
              This is the key here which many seem to be forgetting. While you will get people who cancel, by offering this trial you'd also end up with paying customers who would otherwise not have purchased your product, with the net result of increased sales. Sure, you'll get freebie seekers, but by using the trial offer you could also ultimately generate more revenue at the end of the day - and this is what all product sellers pretty much want, right?
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  • Profile picture of the author Nicola Lane
    It has been done for years with software - there it is called "shareware".

    Offer a "basic" version of something for free (and share it with your friends) - if you like it then pay for an upgraded version. (that is the model you can also apply to ebooks)

    From wikipedia:

    The term shareware (also known as trialware or demoware) refers to proprietary software that is provided to users without payment on a trial basis and is often limited by any combination of functionality, availability or convenience. Shareware is often offered as a download from an Internet website or as a compact disc included with a periodical such as a newspaper or magazine. The rationale behind shareware is to give buyers the opportunity to use the program and judge its usefulness before purchasing a license for the full version of the software. Firms with superior software thus have an incentive to offer samples, except if their product is already well known, or if they do not want to be listed in direct competition with other products on shareware repositories.[1]

    Shareware is usually offered either with certain features only available after the license is purchased, or as a full version but for a limited trial period of time. Once the trial period has passed the program may stop running until a license is purchased. Shareware is often offered without supports or updates which only become available with the purchase of a license. The words "free trial" or "trial version" are indicative of shareware.
    There are various models you can try - but the basic idea is to provide something really good upfront with no investment. Then for continuing use/more features pay to upgrade.

    There is a thriving market in shareware particularly for companies with no advertising budget. Upload your software to shareware sites and if people like it they will buy it.

    With ebooks it is similar to the Amazon "Look inside", or providing a free sample chapter.

    It has been tested a lot - it has been around for years.

    Hope that helps
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