Hidden Continuity is a Lousy Sales Tactic

by | Apr 22, 2008 | Virtual Events & Telesummits | 4 comments

There’s an interesting controversy happening in the world of internet marketing regarding continuity programs.

I got wind of it via Michel Fortin’s blog. Lynn Terry goes into more detail. Apparently, there’s a product that was recently launched that didn’t make it clear that your credit card would be rebilled every month.

Quite a number of people who are pissed off. They thought they were buying a $9.95 ebook. What they got was a credit card bill for 3 times that amount, billed every few days. This is known as hidden continuity and you can read Michel’s blog for more on this.

Ouch!

The internet marketers involved have since updated their sales pages to ensure that people understand that there’s a continuity component to the product they’re buying. They have done an excellent job of visiting various blogs to offer their apologies in the comments area.

I love the subscription model and use it in my business to generate a residual income stream. I make sure that people understand how easy it is to cancel their membership in my programs.

I’ve been in a couple of sticky situations where I’ve had to click around a website for days just to find a cancel button. I give up after 10,000 clicks only to be reminded of the problem when my credit card has been billed yet again for $39.99.

Man, I hate this and I don’t want this happening to those who choose to become members in my continuity. The model I’ve chosen is optional continuity (again, read Michel’s blog for an explanation) where people can enjoy their membership and choose whether or not to renew.

So, here’s what I have done:

  • First, the sales page clearly states at least 3 times that this is a continuity program and that your credit card will be billed month after month.
  • The sales page also makes it clear that if your credit card is rebilled because you “forgot” to cancels, there’s no refunds.
  • Once the person is a member, there’s a Need Help page where I give the member 4 separate ways to contact my team about their membership.
  • A letter is then mailed out to the member giving them information about the membership program, including our cancellation policy.
  • Then, 7 days before the credit card is to be rebilled, an email goes out to the member to give him or her a heads up that their credit card will be rebilled. That same email offers a step by step process should the person want to cancel and also invites him or her to continue their membership.

From an internet marketing standpoint, some will say that this is silly. In essence, I’m inviting cancellations because I state it so many times.

However, I’m more interested in long term customers. If someone has gotten everything she needs from me, I don’t want her jumping through hoops just to end our relationship.

The more hoops she jumps through, the unhappier she becomes, even if she made her first six figure income from my advice. Then, she goes off to tell her circle of friends not to trust me or any of my programs EVER.

Wow, that’s way too much bad publicity just to keep a measly $100 a month. Forced continuity is not cool. Be transparent so you can continue to have a pipeline filled with happy customers.

Update: Monika Mundell over at EasyWordpress has weighed into this issue. While I enjoy her posts, she’s wrong here. She states that those who make money online lack integrity.

I’m troubled by this absolute. Some are indeed in it to get rich quick, but there are others who try to balance hype (which attracts attention) with solid content (which helps others to grow). Be careful about putting everyone into the same bucket.

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4 Comments

  1. Lynne May

    I recently was caught it Joel Comm’s deceptive web and charged a recurring monthly fee when I bought the $9.95 book.

    In addition, I was forced to jump through hoops trying to get the thing cancelled and I still haven’t heard from Mr. Comm’s people that it IS cancelled.

    I took this up with my credit card company and they are taking care of it. Meanwhile, because Joel Comm now has my permanent distrust for and disgust with ANYTHING connected to his name, I have posted in every forum that I frequent to warn others of his underhanded and dishonest marketing techniques.

  2. Step By Step Income

    Companies have been using this trick for years! I am surprised it hasn’t come to light before this, and I am not talking about just online, it’s off line too. They just hide everything in very fine print, so you think your getting a product for free to try out and only have to pay shipping and handling when in reality if you read the fine print they will tell you that you will receive another package in about a month and will bill your CC such and such amount.

    You then try and cancel and they tell you it will be about a month before they can get it off your CC. Too many people fall into this trap and end up paying month after month because they forget to read the fine print.

    I agree it’s wrong, and companies should be up front and honest, and there shouldn’t be any fine print. If your product is that good and worth the $$ then why hide behind tiny words??

    Ronnie

  3. Monika Mundell

    Actually Leesa,

    You totally misunderstood my point. I certainly don’t put everyone into the same bucket at all, but the fact remains that many of today’s A-listers are taking their readers for unfair rides.

    If I didn’t get this message through to you, then my apologies to you for misunderstanding. I know as a matter of fact that many people make online are very honest and high on integrity like myself.

  4. Mitch

    Actually, as a brief point of clarification, you only got billed 3x the amount once a month; I know that because I’d purchased something else from the same person and that’s how it happened to me. But the products are pretty good so after this particular marketer changed things up, I went back and bought the product I wanted.

    I fully agree with the posts against forced continuity. I can’t imagine setting one up myself.