Paypal Recurring Payment - Too easy to cancel?

10 replies
Do you think it's a bad idea to use Paypal to collect recurring payment because it makes it too easy for customers to cancel without even telling you?

I'm selling a low-cost product ($5/mo) and I starting to think credit card recurring will be a better option because customers will need to jump through a larger hoop if they want to cancel. Sometimes they just forgot about it.

Please share your thoughts.
#cancel #easy #payment #paypal #recurring
  • Profile picture of the author dadamson
    If your service is actually worth the price, you won't need to worry about cancellations.

    If people don't want your service, they will unsubscribe no matter how hard it is.

    I use PayPal subscriptions up to around $400 per month but I ensure my service goes above and beyond what my clients expect for their money. This is the best way to reduce your cancelation rate.

    I don't think putting up barriers for your clients is a good solution to reducing opt-outs.
    {{ DiscussionBoard.errors[4421360].message }}
  • Profile picture of the author Carl Fridsjö
    no offense but honestly, why don't you put your effort into offering a product people actually wants to pay for instead?
    {{ DiscussionBoard.errors[4421390].message }}
  • Profile picture of the author David Chung
    Why would you want to make your customers jump through hoops to cancel? If they're not satisfied with your product then you should let them cancel if they want. The burden should be on you to make the membership so great that they wouldn't want to cancel, not to make the process so hard that people who don't like your product have to keep paying for it anyway.

    If your worry is that people will cancel without telling you try having an easily accessible unsubscribe link that leads to a page that reminds them of the value they're getting with your membership, but if they still want to unsubscribe just fill in the contact form and you'll do it for them. Then have a list of common reasons they can choose for unsubscribing or let them fill it in themselves. Then at least you'll know why people are unsubscribing so you can improve the product.
    {{ DiscussionBoard.errors[4421393].message }}
  • Profile picture of the author Kezz
    You should actually get a notice via email when somebody cancels an ongoing subscription, so you should be told in that way at least.

    I personally take the opposite point of view. I like to make it obvious to people that canceling any time is easy. I find that lets people relax and it makes the decision to subscribe easier.
    {{ DiscussionBoard.errors[4421413].message }}
  • {{ DiscussionBoard.errors[4421467].message }}
  • Profile picture of the author sbucciarel
    You should never attempt to make it difficult to cancel. If your customers don't want your service, they don't want it. You'll just cause yourself problems by making it hard to cancel a payment that they don't want to pay.
    {{ DiscussionBoard.errors[4421830].message }}
  • Profile picture of the author Istvan Horvath
    Originally Posted by johnkim View Post

    Please share your thoughts.
    You are lucky: the forum rules don't allow me to share my thoughts in their initial raw form... however, trying to build your business on the hope that people are lazy to go through the hoops and/or they forget to cancel is plain wrong.

    {{ DiscussionBoard.errors[4421873].message }}
  • Profile picture of the author Rich Struck
    I know a guy who owns an extremely profitable site. I asked him once if he ever emailed his members and he said no, he didn't want them to remember that they were still being billed. This happens a lot I'm afraid.

    I think making it easy for people to quit is the best way to go. It only takes one pissed off person to trash you on the internet and hurt your business.

    {{ DiscussionBoard.errors[4421973].message }}
  • Profile picture of the author 3bagsfull
    if your product is worthy of keeping then they won't cancel

    most good marketers FULLY understand that the selling lifecycle is limited and each average customer will be a customer for a particular limit of time

    you need to figure out what that amount of time is and budget accordingly

    offer two options - a monthly fee and a one time payment for a year in advance for a lower cost per month average

    magazines do this every single day. you want one magazine at a time? then pay $5 per mag with a total payment of $60 per year. or buy a year's subscription for $20

    I suggest you get over the opting out fear. see the customer as worth a set amount of money and move on. It is your goal to figure out how much each customer is worth. If they are leaving too quickly in your estimation, then try and figure out what they would need to stay

    survey survey survey and ASK ASK ASK what they want from your program

    subscription/memberships sites are not a place to build and always keep a customer
    membership sites/recurring fees have a time limit -- it is a revolving door

    so plan your business and cash flow accordingly and forget whether or not they can stop sending you money because it will happen -- the issue is doing a bang up job so it happens very rarely
    {{ DiscussionBoard.errors[4421983].message }}

Trending Topics