Could I call a 100% rebate within 24 hours "free"?

21 replies
I'm going to be selling a product that offers an immediate 100% rebate (just as soon as I can process the order, can be within minutes). Basically, they spend $35, and I reimburse them ASAP. Can I call that free? Or does that sound bogus?

I actually can do better than that. They pay $35 and I send them back $50. The only real "cost" is they have to spend about 5-10 minutes "buying" and reporting back so I can confirm and rebate.

I have run into very few "free money" situation in my life, but I have found one that I can repeat. Can anyone comment on my ability to call it "free"?
#100% #call #free #hours #rebate
  • Profile picture of the author Scott Ames
    Personal opinion: It can be called free in the headline if you quickly disclose the details.
    Signature

    Success consists of going from failure to failure without loss of enthusiasm. -Winston Churchill

    {{ DiscussionBoard.errors[3951877].message }}
    • Profile picture of the author Ben Gordon
      Originally Posted by Scott Ames View Post

      Personal opinion: It can be called free in the headline if you quickly disclose the details.
      Agreed. Make sure you disclose the details later.
      {{ DiscussionBoard.errors[3951883].message }}
    • Profile picture of the author Alexa Smith
      Banned
      You can't legitimately call anything "free" if a credit-card/PayPal account is needed for it and a deduction/charge is actually made against that card/account at the time of purchase.

      Otherwise it will not only "look bogus" but "be bogus".

      In my opinion.
      {{ DiscussionBoard.errors[3951898].message }}
    • Profile picture of the author dvduval
      Originally Posted by Scott Ames View Post

      Personal opinion: It can be called free in the headline if you quickly disclose the details.
      To people who don't know me, I'm sure it could come across as a "scheme", and I want to choose the best words to say TRULY that you spend $35, and I send you back $50, no questions asked. That simple. But I have read so many things around here like this, that it sounds like I will come across as "too good to be true". If anything, if people take to it, I might just want to limit the number so I don't get too slow processing the rebates.
      Signature
      It is okay to contact me! I have been developing software since 1999, creating many popular products like phpLD.
      {{ DiscussionBoard.errors[3951899].message }}
      • Profile picture of the author sbucciarel
        Banned
        Originally Posted by dvduval View Post

        To people who don't know me, I'm sure it could come across as a "scheme", and I want to choose the best words to say TRULY that you spend $35, and I send you back $50, no questions asked. That simple. But I have read so many things around here like this, that it sounds like I will come across as "too good to be true". If anything, if people take to it, I might just want to limit the number so I don't get too slow processing the rebates.
        So what exactly are you paying them to do, because that's what this seems like ... what do you expect to get in return? A testimonial?

        EDIT: Ok ... just saw this:
        I just have an investor willing to pay more for the cost of acquiring the lead, because that investor believes they can earn more from the lead over time, but in no way is the customer locked in. It's just a straight "I pay you for than you paid the 3rd party and the 3rd party pays me even more".
        {{ DiscussionBoard.errors[4113913].message }}
  • Profile picture of the author Shazia Mirza
    Is this a way to clone the $0 sales method? Where someone has to purchase, but they only pay $0.00 .
    {{ DiscussionBoard.errors[3951939].message }}
    • Profile picture of the author Scott Ames
      My opinion aside, if you are selling in the US you may wish to review this.


      Federal Trade Commission

      Specifically:

      FTC GUIDE CONCERNING USE OF THE WORD ``FREE''
      AND SIMILAR REPRESENTATIONS

      http://www.ftc.gov/bcp/guides/free.htm




      A good lawyer's opinion is also a nice thing to have.
      Signature

      Success consists of going from failure to failure without loss of enthusiasm. -Winston Churchill

      {{ DiscussionBoard.errors[3951949].message }}
    • Profile picture of the author dvduval
      Originally Posted by IMReview View Post

      Is this a way to clone the $0 sales method? Where someone has to purchase, but they only pay $0.00 .
      I think I will be able to run this program by saying they receive 100% rebate immediately. In this case, it is in no way MLM or Ponzi, or anything of that nature. I just have an investor willing to pay more for the cost of acquiring the lead, because that investor believes they can earn more from the lead over time, but in no way is the customer locked in. It's just a straight "I pay you for than you paid the 3rd party and the 3rd party pays me even more".
      Signature
      It is okay to contact me! I have been developing software since 1999, creating many popular products like phpLD.
      {{ DiscussionBoard.errors[3951980].message }}
  • FREE*. Just do it like that, and then place the *DISCLAIMER that explains the details at the bottom somewhere. That's how everyone else does it.

    I agree that you might want to check with a lawyer first, though.
    {{ DiscussionBoard.errors[3951996].message }}
    • Profile picture of the author dvduval
      Originally Posted by Bradley J Anderson View Post

      FREE*. Just do it like that, and then place the *DISCLAIMER at the bottom somewhere. That's how everyone else does it.
      Thank you. I will keep that in mind. My product is about to go free. (phpLD) (but with a disclaimer!)
      Signature
      It is okay to contact me! I have been developing software since 1999, creating many popular products like phpLD.
      {{ DiscussionBoard.errors[3952004].message }}
  • Since no one else has asked, I guess I will:

    Why don't you just set up the product with a $0 price point? The customer gets the free product, and your client gets the lead. Done deal.

    Or "Sign up for my list and get this product FREE".

    I'm thinking, like someone else said, that a lot of people will be very suspicious of this, especially if you would offer to send them $50 in exchange for their $35. No one would believe that, even if it were true, and I would be willing to bet you wouldn't move a single product.

    Using one of the other methods, though, you don't have to worry about legal issues or suspicious customers.

    [EDIT] - I just realized that all those refunds might get your vendor account locked, too.
    {{ DiscussionBoard.errors[3952059].message }}
    • Profile picture of the author dvduval
      Originally Posted by Bradley J Anderson View Post

      Since no one else has asked, I guess I will:

      Why don't you just set up the product with a $0 price point? The customer gets the free product, and your client gets the lead. Done deal.

      Or "Sign up for my list and get this product FREE".

      I'm thinking, like someone else said, that a lot of people will be very suspicious of this, especially if you would offer to send them $50 in exchange for their $35. No one would believe that, even if it were true, and I would be willing to bet you wouldn't move a single product.

      Using one of the other methods, though, you don't have to worry about legal issues or suspicious customers.

      [EDIT] - I just realized that all those refunds might get your vendor account locked, too.
      I hear you, but in my case there will be a steady stream of successful purchases where people get paid to use my product. I know it may sound hokey, but I know its not, and I think time will prove that it is not. I just have to start the process first with people who already trust me (a large percentage of our 1000s of existing customers). I'm just trying to get the best wording as I get underway.
      Signature
      It is okay to contact me! I have been developing software since 1999, creating many popular products like phpLD.
      {{ DiscussionBoard.errors[3952111].message }}
  • Profile picture of the author terrapurus
    Sure .. call it FREE ..... if you want a good arse kicking from the FTC.

    It is not free because you have to pay for it.

    What it is in this case is $0 after cash back.

    "This offer is normally $XX and you can buy it here at xxxxxx. But I am doing something special for my personal clients. But it and send me the details and I will give you the purchase price back as a cashback. Actually, thats a lie. I will give you $15 MORE back than you paid for it. Why am I doing this .. blah blah blah ..."

    Bad copy written off the top of my head, but you get the idea. A cashback offer is not free. You can advertise the net price, but you are misleading people if you call it free. And remember to put an expiry date on the offer to close it out and eliminate headaches down the track.
    {{ DiscussionBoard.errors[3953494].message }}
  • Profile picture of the author jrodriguez315
    If you are returning $50 after a $35 purchase than I would say that's "Better than FREE!"
    Signature

    I'm saving 50% to 90% off all marketing tools & software tools at The Daily Gangster!

    Real people. Trusted Warriors, Making real money online, now reveal their Best Online Business Blueprint! Click here to learn more . . .

    {{ DiscussionBoard.errors[3954030].message }}
    • Profile picture of the author dvduval
      Originally Posted by jrodriguez315 View Post

      If you are returning $50 after a $35 purchase than I would say that's "Better than FREE!"
      Absolutely! And that is exactly what I am doing with people, if only I could find a better way of letting them know that I basically have free money available. I almost wonder if people won't believe me. Their loss I guess.
      Signature
      It is okay to contact me! I have been developing software since 1999, creating many popular products like phpLD.
      {{ DiscussionBoard.errors[4113725].message }}
      • Profile picture of the author Bill Farnham
        Originally Posted by dvduval View Post

        Absolutely! And that is exactly what I am doing with people, if only I could find a better way of letting them know that I basically have free money available. I almost wonder if people won't believe me. Their loss I guess.
        I have NO clue about this, but wouldn't your merchant account provider put you under scrutiny for this kind of activity?

        And why couldn't I buy from you 100 times a day if my $35 gets me $50 back?

        ~Bill
        Signature
        {{ DiscussionBoard.errors[4113798].message }}
        • Profile picture of the author dvduval
          Originally Posted by Bill Farnham View Post

          I have NO clue about this, but wouldn't your merchant account provider put you under scrutiny for this kind of activity?

          And why couldn't I buy from you 100 times a day if my $35 gets me $50 back?

          ~Bill
          Because I wouldn't be able to offer the same deal repeatedly to the same person. Probably could do 2-3 times at the most, and it does involve about 15 minutes of time.
          Signature
          It is okay to contact me! I have been developing software since 1999, creating many popular products like phpLD.
          {{ DiscussionBoard.errors[4113814].message }}
          • Profile picture of the author Bill Farnham
            Originally Posted by dvduval View Post

            Because I wouldn't be able to offer the same deal repeatedly to the same person. Probably could do 2-3 times at the most, and it does involve about 15 minutes of time.
            Thanks. I smell another disclaimer...

            Curious, if this went viral could you handle the load?

            ~Bill
            Signature
            {{ DiscussionBoard.errors[4113889].message }}
  • Profile picture of the author Chris Worner
    In Australia you can't legally do so. Don't know about the rest of the world though, best to ask your local attorney.

    Chris
    Signature

    {{ DiscussionBoard.errors[4113758].message }}
    • Profile picture of the author myob
      In California that is illegal. You must disclose the purchase price upfront, even though you are giving more than that back as a rebate. You can say "instant rebate" + "bonus" for example, which actually is quite a common marketing promo.
      {{ DiscussionBoard.errors[4113793].message }}
  • Profile picture of the author dvduval
    Yes, I would welcome volume, and then I could easily increase the payout. I am working on making my first WSO based on this. What is kind of cool is it is something I have earned the right to do over time because of previous performance with this program, so it isn't something I need to really hide what I am doing, as someone couldn't walk in and do the same thing right behind me. I could easily pay someone back more $70+ after they paid $35, but it is somewhat a case of where I want to attract people who are seeking to do something with what I have given them, not just take the $$$ and run. Obviously, I will have to factor in there will be a few like this, but the program will not be nearly as long term if the quality of the people signing up are low on a continuing basis.
    Signature
    It is okay to contact me! I have been developing software since 1999, creating many popular products like phpLD.
    {{ DiscussionBoard.errors[4113988].message }}

Trending Topics