Let's talk about $1 trial periods

I'd also like to find out what Refund rates look like.

Refunds of the $1?

Refund rates at $1!? Are ya kidding me? I would refund them through paypal with a personal message that simply read "LOL"

What kind of product is it? Is there a continuity element to it or is it a one time purchase? Is it software?

I've seen some the big gurus give away something for the shipping cost only, then offer the free membership for a month after which buyer would be charged the regular membership subscription.

This happened to me once and I didn't realize that I was paying something like $29 a month for a whole year and there were no refunds. (I didn't get mad because the information was actually useful to me).

I think this is what they're hoping for when they do this but as I said, if the information is good, many will stay subscribed.

Carmen

Exactly what I want to know.

Example: Selling a software product that cost 400 bucks.

Sell it for 1 dollar, and claim 399 after 1 month.
OR claim 400 bucks immideately with a refund period of 30 days.

Problem of scenario 1 is that people "maybe" don't have the 399 cash available after 30 days. You'll never know!

Experience here?

direct mail marketers and informercial marketers have been doing it for years. I imagine that the refund rate is pretty low coming out of the gate although you will have more unhappy people who didn't realize the terms possibly attacking you when you start actually charging them.

The thing to do is to only sign up for these offers using a prepaid credit card such as green dot. Put $1 or the cost of shipping on the card. If after your trial you decided that you want the product/service then put the appropriate amount of money onto your card. Carmene (read above post) got lucky, but the method I just described protects you so you don't need to rely on luck.

The trial period method beats hands down, no doubt about it. It's a small
hurdle to jump over and I've found that those who don't go beyond the
trial period would have asked for a refund in the first place.

For example at

Ray L. Edwards Copywriting Coaching and Mentoring Program

I've used a $2.95-7 day trial to give each customer an opportunity to see
what they get. Those who go beyond the trial period usually stay
beyond the first month (average 6-12 months) meaning that the
trial did help them to make up their minds. Yet at the same time those
who got in at the $2.95 feel that they got more value than they paid
for. (I've NEVER anyone request a refund for the $2.95.)

The bottom line is that the trial period increases sales.

-Ray L.,

I was talking with Mike Glaspie about this a few months ago (From bannersgomlm fame).

He said it works *really* well. I've tried it a few times and it wasn't bad either (but just minor testing).

One thing I will say:

In order to keep yourself from being bashed - DO NOT hide in the fine print the monthly cost. At the very least, keep it clear that people will be charged it if they continue after x days.

That person Carmen mentioned (actually a few marketers did this) were seen as scammers because people didn't see any notice that they were to be charged repeatedly.

I understand there were a lot of chargebacks - and that is something people would win. To keep refund/frustration points down, make sure people know that there will be a charge if they don't cancel.

Frank Kern did that recently - just a shipping cost, then if you didn't cancel or return, you then after x days started paying x $ a month. (I think it was actually really high - $97 a month! - high for many people anyway).

Just my thoughts/experiences.

Amber

I offer a $1 trial on Easy Backlinker and its proved very successful. That combined with pretty decent sales copy has resulted in a 3-5% of people taking a trial (depending on traffic quality).

Since is a good service I'm seeing very good retention rates as well and so far zero refunds of the $1, even if people cancel.

All told I'm very happy I'm offering a $1 trial.

Trials have been going on for many years and many have used them. I will be going with a trial period with one of my sites come the 1st.

Thinking of doing $2 for 15 days or something similar...

They do work and work very good to your advantage.

James

It seems that a $1 trial offer is better than a 30 day money back guarantee. I'm considering to offer a $1 trial on my membership site, hope it works well.

I have always offered a free 2 week trial.

Which brings the question to this thread - $1 trial or free trial?

Has anyone tried both?

What converts more?

Ben
$1 trial will be perfect for your product, I think. Conversion will be much higher. Anyone remotely interested in the software is more likely to give it a shot without much hesitation. Retention ofcourse depends on how it delivers (which I believe will be good).

People who take advantage of (read "steal")this type of offers should not bother you because there is nothing to steal. They cancel, they lose. I think you will do realy well with a trial offer.

Tanvir

I sell a $1 trial that leads to a $97 continuity program, and the results have been astounding. It's a MUCH easier sale to offer the opportunity to grab your content for an initial $1 charge than it is for a $97 charge.

When dealing with continuity it's important to understand that your profits will be a function of TRAFFIC + CONVERSION + RETENTION. Many people running a continuity program concentrate effort on traffic and conversion, while neglecting retention.

With our $1 trial about 35% of our members cancel before the first payment of $97.

Having a $1 trial increases our front end conversion by a factor of 3. You don't have to be a maths genius to understand why (in our market) using a trial offer makes complete sense.

The key is to test though, and your own results will of course vary. But for this particular offer having a $1 trial has been a revelation for us.

I hope this helps!

Lee McIntyre