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FREE Trial Offers? How Can They Do That?

by Mark Kaye
13 replies
Howdy,

I have just started learning about FREE TRIAL offers. I'm talking about the kind of program where you sign somebody up to get a free sample of a product (usually a supplement or energy drink). All they pay is $3 shipping and handling but you get $30 from the affiliate program.

Has anyone found these to be successful? Is there a certain trick to it? How can a company earn $3 per lead and then pay out $30 to the person who generates it?

Also, do they pay out the $30 even if the lead never buys the product?

Any information and advice would be helpful.

Thanks!
#free #offers #trial
  • Profile picture of the author axeray
    Would they be looking for customers to be impressed with the product, in the trial, and banking on them coming back for more?
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  • Profile picture of the author Kristi Lane
    Most of those trials are forced continuity and the company knows how long the average customer will stick so they take an initial loss.

    Regarding terms for the conversion - they vary, read the fine print.

    Kristi
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  • Profile picture of the author sevenish
    Since the merchant already has the lead's credit card number and the lead will likely forget to cancel the next shipment, at least one actual sale usually occurs. It's called "forced continuity", but the terms are usually made very clear on the sales page.
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    • Profile picture of the author pjs
      Originally Posted by sevenish View Post

      Since the merchant already has the lead's credit card number and the lead will likely forget to cancel the next shipment, at least one actual sale usually occurs. It's called "forced continuity", but the terms are usually made very clear on the sales page.
      Right. And on top of that they usually have a decent sales team to call and up sell these leads. It's pretty standard to take a loss on the front end for a lead proven to be interested in your product and willing to take out their CC.
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    • Profile picture of the author psresearch
      Originally Posted by sevenish View Post

      Since the merchant already has the lead's credit card number and the lead will likely forget to cancel the next shipment, at least one actual sale usually occurs. It's called "forced continuity", but the terms are usually made very clear on the sales page.
      Wow. That's almost never true on the bizopp offers I see. In fact I'm helping over 100 people on one of my blog posts file complaints against one of them and get their money back.

      There are tons of shady forced continuity offers I see in the networks that violate the FTC disclosure proximity guidelines for negative option offers.
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      • Profile picture of the author Lance K
        The ones who count on people "forgetting to cancel" are not the model to follow.

        Originally Posted by markquinn View Post

        Wow. That's almost never true on the bizopp offers I see. In fact I'm helping over 100 people on one of my blog posts file complaints against one of them and get their money back.

        There are tons of shady forced continuity offers I see in the networks that violate the FTC disclosure proximity guidelines for negative option offers.
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        • Profile picture of the author psresearch
          Originally Posted by Lance K View Post

          The ones who count on people "forgetting to cancel" are not the model to follow.
          This is beyond "forgetting to cancel" - these are the ones that end up settling with the FTC for 2 Million plus dollars such as this recent settlement I've posted before here:

          FTC 2 Million Dollar Settlement for violating disclosure proximity rules

          I'm talking about the offers that don't follow the The Federal Trade Commission enforces the Prenotification Negative Option Rule:

          "The Rule requires companies to give you information about their plans, clearly and conspicuously, in any promotional materials that consumers can use to enroll. If the sales presentation for a plan is made orally, say on the phone, the terms and conditions still must be disclosed clearly and conspicuously during the presentation.[/url] FTC Prenotification Negative Option rules."

          I see offers that violate these rules popping up weekly on the major networks.

          It doesn't have anything to do with "forgetting to cancel". There's a 41 page document the FTC puts out that outlines the rule for business.
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          • Profile picture of the author Lance K
            And that's not the model to follow either.

            Originally Posted by markquinn View Post

            I'm talking about the offers that don't follow the The Federal Trade Commission enforces the Prenotification Negative Option Rule:
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  • Profile picture of the author mbacalc
    Banned
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  • Profile picture of the author Mike Adams
    The companies know the Life-Time Dynamics of a client or Marginal Net Worth of a client i.e.

    1. Worst case scenario how much will the client purchase.
    2. Worst case, how long will they remain a client (3 cycles, 5 months etc...)
    3. Worst case how much per recurring cycle will they buy (under their own volition or forced continuity).
    4. Worst how many other products will you be able to sell them as a current client.

    Basically for every new client you acquire they will purchase $XXX.xx over their "lifetime". So, if that number is greater, worst case, than the initial acquisition cost, than its worth it.

    I must give credit to Jay Abraham for this. He is the greatest marketer of all time.
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  • Profile picture of the author Monetize
    I don't deal much in that sort of thing but my understanding
    is that you don't receive your affiliate payouts until the lead
    actually pays for the full product or has been a customer for
    a certain timeframe, thus eliminating the possibility of fraud
    and keeping the merchant from losing revenues.
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    • Profile picture of the author psresearch
      Originally Posted by Monetize View Post

      I don't deal much in that sort of thing but my understanding
      is that you don't receive your affiliate payouts until the lead
      actually pays for the full product or has been a customer for
      a certain timeframe, thus eliminating the possibility of fraud
      and keeping the merchant from losing revenues.
      Yes. That's why some pay as late as net 60.
      Although I've found that once I've hit a certain amount of volume
      I can usually negotiate for much faster payouts - usually either
      twice a month or sometimes even weekly.

      The networks don't always explicitly post that information. You
      have to ask.
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