There has been a lot of discussion and controversy related to tactics marketers use to get people to take action.
Much of the controversy is related to a method called "forced continuity." This is where buyers will sign up for a trial or shipping-only price offer, and end up in a monthly billing program that they may or may not be aware of.
Over the years I have seen it all.
There's nothing wrong with a subscription model as long as people understand what they are signing up for. But even then there are people who do not read the offer completely and end up in a program unaware.
The concept is that people will be so attracted to the initial offer that they will be willing to accept the terms for continuity billing. It happens all the time in the Internet marketing space, as well as magazine subscriptions, health and supplement products and so many other areas. Again, there's nothing wrong with subscription models. It's HOW you do it that matters.
And while email and websites may be the online channels for this style of direct marketing, I have been paying attention to the offers that arrive in my snail mailbox.
I've got a few examples of forced continuity or outright sneaky marketing tactics that have been personally addressed to me. Check out this video...
As always, I'd love to hear about your experiences. Please leave your comments below.
Nice piece of work Joel. It would be nice if there could be a bit more of a backlash against this marketing practice.
The common one we have in the UK/Europe is the mobile phone subscription. You respond to an advert for a ringtone without realising that doing so is subscribing you to a weekly billing programme. It takes some people weeks to realise.
A more dangerous one I saw the other day. A Facebook advert for a prize draw to win an iPhone. To enter you have to put your mobile number in the form, and in thevery small print it tells you you are subscribing to a subscription service.
Great post, Joel. Scammers are scammers, regardless of the medium used. Thanks for the PSA. ;-)
Thanks for making this video, Joel. Too many sketchy offers out there, especially online, where everyone is trying to make it rich. Multi-color squeeze pages, low introductory offers, tons of testimonials with people that only have a first name, super-slick hucksters making videos that remind me of the ShamWow dude..... this stuff makes me sick to my stomach.
Thanks for the post! Forced continuity has always been an issue to try to think through. I think if you do what is right for the consumer then you will win in the end.
Ever try calling the 800#'s for infomercials? They run deceptive misleading ads on TV & radio all the time to get people to call, and they have "bullpens" of con artists waiting to upsell & cross-sell until they can get every last penny out of the person who calls... and once they get your credit card info, expect the worst. And, how about all the name brand retail companies who advertise "REBATES"??? They make it so time consuming and complicated to get a rebate that they already know statistically how few people will ever follow through and collect on the rebate... more scams. Caveat emptor! Buyer beware. I think someone needs to start an Internet TV show randomly testing the various offers like these and archiving them for consumers to rate and comment on.
Hey Joel,
Great video - this is one of those things we all get hit with, but did you know you can "Opt Out" of receiving unsolicited offers by mail via your credit report? Just like the phone list though, it only applies to companies you do not already have a relationship with, but it will cut down the amount of junk mail you receive.
So how do you get OFF the lists of companies you do deal with but don't want to receive garbage offers from? Typically you have to either call or go to the company website to opt out, but it should tell you how to do so right on the junk mail they send you.
Anyone who is moving house should absolutely make this part of their checklist just like registering your new phone number for the "Do Not Call" list. Once you move who knows who may pick up your mail and respond -a perfect opportunity for ID theft.
Thanks as always...
Hi Joel,
Great topic. The examples you show of off line continuity are eye opening. Perhaps I am more aware of reading the small print when I am doing something written in front of me. The Continuity systems on line often catch me off guard - They offer the possibility of canceling any time yet often make it difficult to do so.
There was a recent post in the Warrior's Forum on this -
When the on line marketer leads you into a funnel dishonestly revealing you are in A "FORCED CONTINUITY PROGRAM" after you have signed up and opted in -
Then it may take you FOREVER to get your cancellation - whilst in the mean time you are scratching your head as to when and what you are being charged for?
Well the FTC is cracking down on it...
http://www.ftc.gov/os/caselist/09230...ytreecmplt.pdf
Federal Trade Commission v. Infusion Media, Inc., a corporation, also d/b/a Google Money Tree, Google Pro, Internet Income Pro, and Google Treasure Chest, West Coast Internet Media, Inc., a corporation, also d/b/a Google Money Tree, Google Pro, Internet Income Pro
The system may be used but are we as internet marketers using it ethically? Many of us do - our standards are high - some do not and it is the scammer's intention to get you into their web. That is the piece that disappoints me - and other honest marketers. - These guys ruin it for the rest of us on line and off.
Thanks for the post.
Terry Loving
This is a great post. I can't wait to read my junk mail now. Sad to say that so many people are getting scammed like this and not even realizing it. Thanks for the warning.
Great Video, I still think there is more underhand activity online but it aint all sleezy guys with their laptops...
Paul.
I love when I get mail that says something like "You've been selected to receive a special offer..." Yeah, more like I've been targeted to receive a sales pitch.
I'm normally good at avoiding scams, but I fell for one about 2 years ago. I clicked on a link (I think in FaceBook) about taking an IQ test. I took the test, but never got results. I started getting a text message every day with a fact. Most were amusing, so I didn't mind it. I found out on my next phone bill that somehow along the way, this "service" had tricked me into agreeing to a $10/month charge on my phone bill. I don't remember seeing this agreement anywhere. I canceled it when I found out.
I've had these tactics used on me a couple of times. Shoemoney did it and so did Emusic. Sure, they might have got an extra monthly payment from me, but I think it has a far greater negative impact on their reputation in the long run which will cause them to lose the trust of a lot of customers ultimately. And trust is one of the most important and hardest things to earn...
It's possible the recurring charge info was in the fine print, so technically it is probably my fault. But by not making it crystal clear what a person is signing up for, we all know what they are doing by burying it in there so that it is hard to find. It's underhanded at best.
Government Child support agencies do the same check crap. G* know how much tax money is wasted since my kids were over 18 and not going to college. Phone companies did that back in the 90s as well.
Just be real careful when you cash checks
It's always funny to see how people manipulate the small print to take advantage of people. That's why it pays to be a skeptic whenever you're getting something cheap or for free.
Just the other day at the bank, while doing a deposit, a nice old lady in the next window was depositing one of those $10.00 checks. Luckily the teller asked her if she understood that she would be billed $38.00 every month if she deposite it...of course she didn't after that but yeap, you gotta be careful. Thanks for the video!
Thanks for this post! I love it - it is about time people stand up to marketers that are deceiving in their practices! (snail mail, online, telephone, infomercials) I myself have fallen prey to a couple online offers that then go and charge my paypal after the first month - what a pain to track them down!
As for snail mail offers - you are right, SO MUCH paper is wasted - I think junk mail has the biggest environment "footprint" left behind! What can we do to stop it? Any advice?
I was walking through the house and someone had Maury on - and I caught a break to a commercial where Maury said - if you are in the Connecticut area and want to attend a taping call (blah blah) and at the end you will also receive some wonderful offers - Oh wow not the telemarketers are attacking you when you call in for tickets - Shame On Maury and the other shows that do that too!
Thanks again Joel - You Rock Always!
It's obvious these tactics work, otherwise these companies would not be sending these offers. It's not cheap to send snail mail anymore. Don't we all know the sender wants something more from you if they are willing to send you these 'free' gifts?
The answer is simple. If you want the free thing, know there is usually a price to follow. Just read the fine print and if you don't want to continue the service, cancel before the deadline/first bill arrives and enjoy your freebie. Or pass on it and shred/recycle the paper the offer is printed on and enjoy the good feeling you get from being green :)
Live Your Dreams,
Jill Koenig
Great way to market to finacially challenged people. I like those scientifically unproven health related products that you can buy from Walmart for $4. CPA offers promoting these products with a continuity program of $40 is great. Finacially challeged people will buy these products and affiliate marketers like me will make tons of money. Love this capitalism and wealth creation techniques. Accumulate wealth by draining money from others who are finacially challeged.
When you register a domain at Godaddy.com, "renew automatically" is the default. You actually have to go into your account, select the domain and uncheck the "renew automatically" option.
I learned this the hard way when 3 domains I no longer wanted and thought would just expire were renewed automatically by Godaddy. Problem is I didn't have the money in my checking account at that time to cover the transaction. This resulted in my having to pay overdraft fees!
Videos are such a cool addition to a blog,
Good Stuff Joel!
;]
Hi Joel:
Thanks for the video - your posts are usually so helpful and insightful. I will continue to monitor all my mails both snail and emails. What consumers should do when they receive print mail spam write "moved" or "return to sender- addresse unknown" and drop it in the mailbox. For online however DO NOT EVER REPLY, simply spam that email or improve your spam blocker.
Thanks
Dee Thomas
Great comments!
Sonny, I looked at Shoemoney's page and see nothing wrong with the way he is presenting the offer.
On the front page the first line says "Your initial charge will be $197. You will then be charged $197/monthly after your initial charge has been made. "
Then, on the shopping cart page there is a very clear line item that says
"FUTURE PAYMENTS: $197.00
Future payments billed monthly. "
Again, there is nothing wrong with continuity. It's when it is hidden away or disguised as something else that it becomes an issue.
Believe me, I became aware of this when I sold my AdSense ebook a couple years ago and sent people a free trial to my print publication. It was VERY clear in the offer. No small print. And it was on the shopping cart page as well.
The problem was that people were buying an ebook and weren't thinking about the newsletter.
I quickly apologized and remedied the situation to give people an option to get the ebook on its own or with the trial edition of the newsletter.
One of our offers does continuity up front and with great integrity. You can see it at http://theprofitvault.com
The more reason you need to read everything before you buy.
Great vid.
Thanks Joel for the info. It comes at you from all angles! "JUST PAY FOR THE SHIPPING" to try a free product! 99% of the time you are signing up your credit card for some monthly billing to some "wonderful" shopping service or similar junk service. And they know that a huge portion of people don't check their statements monthly if at all. I got duped on teeth whitening which I canceled right away, but never realized it was tied to a service that had to be separately canceled which I didn't have their contact info until I received my monthly statement. This is how the majority of the scams work and if like me,I got a little behind and lazy on checking the statements and not making them a monthly priority task(which I usually had) so I paid the price of 9.99/mo for several months until I caught it and was refunded 1 mo. charge after I vehemently complained and it was an "unusual" case and they so "generously" could only go back 1 months billing! It was that savers logic in me to try something for free and not worry about having to return the product if I did not like it. I paid for it all right and I'm sure they got a kickback on the monthly charges that slipped by my attention! It seems that you can't check out any product or service without it being tied to some scam unwanted product/service. Just by reading some of the responses here, I wonder how many would fit the bill of this article themselves whether or not they commented or are just listening in. It is a gold mine out there as so many people are struggling to find another solution and most stuff being marketed has no real value except to the pocket of the seller! Judgment will come some day though!
The worst I have ever come across is a back pain site that offers a free book if you pay the postage. They then started charging a monthly fee for some pills that I had not requested. I actually had to cancel my credit card to get rid of them.
Taking advantage of people's misfortune is beneath contempt. Oh by the way, the free book never arrived.
Thanks Joel
Wendy
Thanks for the reminder!
The key issue is TRUST.
Some marketers would rather fool you into signing up for something. This may earn them some extra bucks in the short term, but conveys the message that you cannot trust them and must be always on your guard.
In the long run, building trust builds one's brand and results in more loyal customers and greater returns.
When I get an offer from Joel, I never have to worry about the small print and can feel confident placing an order. That's worth a lot.
-Gene
Oh, this is classic. Thanks for posting this video Joel! Not only is it informative, it's entertaining. I really like the bums who make you suffer through several hours of self-centered videos, then try to get you to buy $4000 worth of crap, along with monthly fees. Or the ones who try to sell software that helps you plagiarize others' websites, & create spam/spam bots - for a monthly fee (priceless).
Junk mail is annoying but, sometimes I actually have fun with it. Some of these companies are dumb enough to include a change of address section. Guess who's name & address they get? The person who heads the local Consumer Fraud department...LOL It really rocks my world when the local news station gets informed of the scams.
If it's okay with you, can I post your scam videos on my first blog?
hmm i got scammed once with work from home business packet in the mail. lots of scammers out there i also seen make money with google just pay us we build you a site and you rake in the cash. lol scammmm nothing is free
I have seen tons of these. Fine print always sneaks in that there is future billing that they don't tell you about. Most things that seem too good to be true usually are. There is usually a catch. Anytime your hard-earned money is involved, do your research and read policies/billing information which a lot of people don't do. They then unfortunately have the right to do whatever because they have snuck the right to do so hidden amongst the fine print. Always be careful with your money and do your research about scams and trustworthy programs. They are tons of them out to get you. Great idea Joel, to bring this up.
Joel, this is awesome!!!! I can definitely see a weekly Video going through all the junk snail mail. I may do just the same with my junk mail. Perhaps have a little competition to see how much paper is wasted in terms of weight. Thanks for the insight and the honest angle on Marketing. Hmmm $10.00 could really go a long way.....
Joel,
As always, your incite is valuable.
My biggest concern in getting the government involved is throwing the baby out with the bath water. Look at what has happened to testimonials. Even better, take a flight soon and you will understand what I mean. One fool screws with his shoes and now we are all running around barefoot in the airport. Do you feel safer after having your shoes scanned?
BTW, I thought your ending was priceless. Well done!
So true, the list is never-ending. I host websites for a few people and because I get this letter in snail mail from the "Domain Registry of America"
about a month or 2 prior to a domain registration expiration, I now provide my own snail mail address in whois unless the owner has been advised of deceptive practices as such and wishes to have their address information in WHOIS.
It's a very official looking piece that would scare a first time domain owner into spending 2-4 times what it should cost to renew their domain.
An aside:
Joel I just noticed your FTC disclaimer, does that mean you have discontinued endorsements? Or do endorsements since the new rule went into effect each have their own disclaimer?
Steve
Hello, my computer hard drive burnt out and I lost all my stored information. Included was my course by Joel Comm. I was just in my 4th week when I lost it. I s it possible that your website still have my information stored? I will appreciate all the help. Or, do I have to sing up all over again.
Thank You
Elvin L Fredrick
elvinbr9@yahoo.com
Forced continuity method is a not customer type of service and that's bad. They only think of there income not the customers. By the way thanks for sharing this great topic.