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Low Cost Trials Leading to High Cost Memberships

by R.Rapp
14 replies
Hi Everyone,

I would like to get your opinions on this situation I have seen a lot lately. I don't have any specific examples to provide at the moment, so I will just explain.

There have been a few products I have been interested in purchasing, and they had a great hook and the $1.00 trial. The thing is, when reading the small print this $1.00 trial automatically rebills you each month for a much much higher amount - like $80.00 a month - sometimes higher. Plus, you really have to read the small print and hunt this information down to find it. Needless to say, I never ended up opting for these trials.

I can see the value in offering a $1.00 trial that will continue to rebill at a specified amount each month - but I am more curious as to what your thoughts are about these sites that charge really high rebill amounts. I personally think this tactic is somewhat shady. Oddly enough, I would likely be totally fine with it if it were a smaller amount - something I could wrap my head around each month.

I am not trying to insult anyone who does this, just get information. It seems to me that these costly recurring payments would piss a lot of people off. I would also assume you would get a very high amount of disputes/refunds/cancellations/complaints each month.

I am not selling or promoting any recurring products at the moment, but I am interested to know what the cancellations and refunds for recurring payments such as this are in comparison to smaller recurring charges. Perhaps it is worth it if you get those few customers willing to pay high amounts each month as opposed to a lot of people willing to pay smaller amounts?
#cost #high #leading #low #memberships #trials
  • Profile picture of the author TimAtkinson
    Originally Posted by R.Rapp View Post

    Hi Everyone,

    I would like to get your opinions on this situation I have seen a lot lately. I don't have any specific examples to provide at the moment, so I will just explain.

    There have been a few products I have been interested in purchasing, and they had a great hook and the $1.00 trial. The thing is, when reading the small print this $1.00 trial automatically rebills you each month for a much much higher amount - like $80.00 a month - sometimes higher. Plus, you really have to read the small print and hunt this information down to find it. Needless to say, I never ended up opting for these trials.

    I can see the value in offering a $1.00 trial that will continue to rebill at a specified amount each month - but I am more curious as to what your thoughts are about these sites that charge really high rebill amounts. I personally think this tactic is somewhat shady. Oddly enough, I would likely be totally fine with it if it were a smaller amount - something I could wrap my head around each month.

    I am not trying to insult anyone who does this, just get information. It seems to me that these costly recurring payments would piss a lot of people off. I would also assume you would get a very high amount of disputes/refunds/cancellations/complaints each month.

    I am not selling or promoting any recurring products at the moment, but I am interested to know what the cancellations and refunds for recurring payments such as this are in comparison to smaller recurring charges. Perhaps it is worth it if you get those few customers willing to pay high amounts each month as opposed to a lot of people willing to pay smaller amounts?
    I wouldn't call it shady. The reason for the $1 trial at least for me is to prove to the buyer that my membership site is the real deal. It's not like they don't disclose on the sales page that after 14 days or whatever you will be billed 97 bucks a month. Also most of the content you get for the first 14 days for example is a lot and usually you can't complete the trainings or bonuses within that time and that is a benefit to the vendor because it results into more memberships staying active(you being charged the 97 bucks). Membership sites for sure have a higher refund rate but if it is everything and a bag of chips and you have solid relationships with your list you will keep a lot of loyal customers for the rest of time.
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  • Profile picture of the author Dennis Gaskill
    If the recurring billing disclosure is, as you say, "you really have to read the small print and hunt this information down to find it," then I agree with you, it's pretty shady. I would think the 30-day trial should be sufficient to determine if the site was going to be worth the high monthly fee though, so as far as the price goes, I have no problem with that. It it's worth it, it's worth it; if it's not, get out before the 30-day trial is over.
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    • Profile picture of the author Michael Shook
      Low cost trials from my experience can be a valid proof of value if the time period is long enough to go through the materials in order. If the time period is short 3 days or 7 days sometimes or if the good membership materials only show up after the trial period is over, then this would appear to benefit the marketer more than the customer. And might be considered by some to be somewhat shady if this was not disclosed in the saleletter.

      Sometimes, though, a short period is all that is need to evaluate the membership. kind of depends on what the membership consists of.
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  • Profile picture of the author Dave d
    I have signed up for some trials like this from some well know marketers and I think you need to able to trust the person thats offering it. This type of trial is ok if its push button to cancel for example SE Nuke but I have seen many trials that are a lot more difficult to cancel and I know for sure there are many people who have complaints about trying to cancel Traffic Geyser.

    Im sure there are shady marketers who are not upfront about the billing and do make it difficult to cancel with the hope that you will probably forget that you even signed up. So the bottom line is you do need to be careful or else you may end up getting rinsed.

    Dave d
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  • Profile picture of the author WD Mino
    I think I am going to put the trial on my site Dennis what do you think 1$ for a day or 1$ for a week or what?
    -WD
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  • Profile picture of the author Ross Dalangin
    Maybe if the product is really great and you couldn't live without it when you tried it. Something like really saves your time doing it. An example of this is a software or a membership sites that really have good content or high quality products that you have the right to sell also.

    The target of these people are people who buys high priced products or already tried purchasing similar product but no luck in making it really profitable.

    I tried offering that before but got only few sales so maybe it's not for me at that time.
    I may even considering that but not this year for sure but I'm not closing the door because if some of my JV partners want then what can I do.

    Good luck!

    Ross
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  • Profile picture of the author CDarklock
    I'm with Dennis. I've even seen Frank Kern advertise one of these, and make a big show of saying that he gets a commission, so if three people sign up for the trial maybe he can buy a Coke.

    But there was no mention whatsoever about the $97 recurring monthly. And if you didn't look for it, you wouldn't see it. I wouldn't call it hidden; the print wasn't even particularly "fine." It was just regular old text underneath the buy button. (And I'm pretty sure Frank can buy more than a few Cokes with the commission on a $97 monthly.)

    That's about as far as someone can go without being shady in my book. There's a place where you're misdirecting someone and saying "look over there," when they should know better... and there's a place where you're actually trying to hide something. As an amateur magician, I pretty much have to be okay with the first one , but the second one is over the line.
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  • Profile picture of the author R.Rapp
    Thank you all for your opinions, much appreciated.

    - And yes, a large concern was that it was so difficult to even find in the first place. On one hand, I can see the value in this as you will probably get more subscribers if the rebill amount is not easily seen - get them in, show them the value and then count on the value of your product and services to keep them loyal

    - on the other hand, I don't know about the tactic of hiding it deep inside walls of text and terms and conditions that most people don't bother to read.
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  • Profile picture of the author butters
    Some are shady and some are not, the ones like the **** berry are shady but some IM'ers put a clear sign on there sales page saying "You will be rebuilded after 14 days at x if you don't cancel". If it is clear and not hidden away in a terms of service then its fine.

    The reason they charge some on $1 for a trial is to get the user in a buying mood for their upsells.
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  • Profile picture of the author Steve Ranger
    These are being cut down on.

    VISA held a conference at the end of last year
    discussing all of this. Expect some changes!

    I've also heard that the people that made millions
    from the **** forced continuity stuff have all
    relocated to Europe - not sure on this though.
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    • Profile picture of the author deckman
      Originally Posted by Steve Ranger View Post


      VISA held a conference at the end of last year
      discussing all of this. Expect some changes!

      Would it be a correct assumption to say that maybe issuers of Credit Cards are also guilty of the fine print, hidden in legalese that you dont understand anyways or maybe dont bother to read?
      Try to opt out of that one.
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  • Profile picture of the author CDarklock
    Here's a vaguely related question. Anyone doing high-price intro with optional low-price continuity on the back end?
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    "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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    • Profile picture of the author deckman
      Originally Posted by CDarklock View Post

      Here's a vaguely related question. Anyone doing high-price intro with optional low-price continuity on the back end?
      Damn good Idea! I like it.
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  • Profile picture of the author ZhaoAnXin
    I kind of feel like if it's promoted as a monthly thing, than it's obvious.

    If it's promoted as "get this for $1", and there's continuity than the user should have to physically tick something or whatever.

    What seems a little bit sketchy is having a low end offer, with a one click upsell to continuity pre-checked because most people float through things very quickly and might not notice it.

    If they have to check the box themselves and they do - then I think that's fine.
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