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$1 trials on membership sites...in or out?

by RenegadeSC
12 replies
I know that Visa flipped out about the use and abuse of $1 trials awhile back. I don't remember what the outcome was since I don't use trials at the moment.

Does Visa frown on the use of $1 trial offers? Anyone using them successfully?

Thanks for your input.

Mark
#membership #sitesin #trials
  • Profile picture of the author icoachu
    if it is used in furtherance of a SCAM, then it would be a BAD idea

    Just put yourself in the shoes of the people you're trying to target. Is the outcome something YOU would like? That would be your answer.
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    • Profile picture of the author RenegadeSC
      Originally Posted by icoachu View Post

      if it is used in furtherance of a SCAM, then it would be a BAD idea

      Just put yourself in the shoes of the people you're trying to target. Is the outcome something YOU would like? That would be your answer.
      I get that and I agree 100%. I wondering if Visa banned trials or simply passed a set of guidelines that would make them acceptable.
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    • Profile picture of the author TimD
      Originally Posted by icoachu View Post

      if it is used in furtherance of a SCAM, then it would be a BAD idea
      I don't know what to make of this response.

      Is that really how low this board has sunk. We feel a need to tell each other that scamming our customers is a bad idea, oh, and to make sure you get it, let me put it in CAPs.

      I don't know if this is a misguided post. Or if it's a sad commentary on WF that we have to spell out advice like that.
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  • Profile picture of the author Dan Grossman
    I haven't heard of anything like that. What both Visa and MasterCard banned was using $1 authorizations to test if a credit card is valid, not charging $1 to trial a product. Authorizations are not money that is transferred to you, just held on the card temporarily until the capture is made.

    What you're supposed to do now is make a $0 authorization and immediately void it. If you make small authorizations and do not follow them with a capture within a set number of days, outside of certain industries, you will be charged Misuse of Authorization Fees on your merchant account statement.
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  • Profile picture of the author Searchlabmedia
    Not sure if Visa has banned that type of membership, but on the surface, it doesnt look all that good. Why not start with a higher price?

    Dave
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  • Profile picture of the author Greedy
    It all depends on the product, and your customer support.

    Don't do shady stuff that gets people calling their CC companies pissed off.

    And to my best of knowledge Visa still allows it.
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  • Profile picture of the author Dan Grossman
    Let's see if we can't bring this back to a useful discussion.

    I created a service called W3ROI to track clicks and conversions from advertising. It was your typical subscription-as-a-service, monthly payments deal. There was no trial, but I had a 30-day money-back guarantee and featured this very prominently on all pricing/signup forms.

    Last month I launched Improvely, which builds on and replaces the W3ROI platform. I also swapped the 30-day money-back guarantee for a 30-day free trial period. Both sites required a credit card to sign up.

    The conversion rate at Improvely is much, much higher than W3ROI's. It's just one data point, but something to consider -- still require a credit card, but don't charge $1 for the trial, charge $0. Just validate that the card works. You still get the benefit of weeding out people that have no intention of paying you, since they won't give you a credit card.
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    • Profile picture of the author Steve B
      RenegadeSC:

      What I don't like about $1 trial memberships has nothing to do with VISA.

      I think some site owners have adopted the idea that they can "hook" (get lots of members' credit cards on file) and then automatically charge them the full price for one or more months in 30 days because the customer will forget what he signed up for and/or hesitate to ask to be released from his contract.

      They are just taking advantage of busy or timid people that are not going to use the membership site by continuing to charge them.

      Certainly, it's the signee's own fault if they forget to cancel or if they don't ask to be taken off the membership. But I don't like the thought that some site owners would try to trap people who don't take action.

      Just my thoughts. You may certainly feel differently.

      Steve
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  • Profile picture of the author WebPen
    Just make it extremely clear what the person is signing up for.

    Lots of marketers still use trials, but they specifically say when the person signs up that it's X now, and Y every month after the trial.
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  • Profile picture of the author Dan Grossman
    Any honest business would remind the users that their trial will soon end as they approach the first billing date to avoid that. I send them at 7 days and 3 days before the trial ends.
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  • Profile picture of the author mbacak
    I'm pretty sure the things you are referring to was unclear forced continuity.
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  • Profile picture of the author Ron Douglas
    $1 trials are completely ethical and still very effective as long as the payment terms are visible and understandable.

    If you use PayPal, the terms are stated clearly on the checkout page prior to completing payment. There is no reminder email sent.
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