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Are rebill / Free trial offers ethical?
I want to hear your opinion!
http://bit.ly/MBMwd
I would like to get as many votes as possible so please take a second. You don't have to register or anything like that.
Thanks!
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My name is Jonathan Volk. Each month I make hundreds of thousands of dollars via online marketing. I specialize in the following methods ranking from most used to least used: PPC Marketing, Social Media Marketing, Media buying, Search Engine Optimization, and finally, Article Marketing. Many of the techniques I learn I have written about on this blog as both a way to remember myself and also to teach others. My goal is to create the ability for many to learn how to market online so that they too may be able to make money online.
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I personally believe it to be completely ethical. The problem lies in people not reading the terms. Many people see something say “FREE trial” and assume that its free with no future obligation.
That’s where the mistake is. Even if affiliate marketers were to give a little larget text, many consumers would tune it out. So bottom line, its ethical, its just the matter of getting it through some visitors minds that its NOT completely free should they not cancel.
It’s funny – if people would actually read, the re bill industry would be dead.
I agree with Justin. If You sign any kind of deal – You need to read it first, because complaining after a fact won’t do anything. Even a free deal is a deal, so – read those terms carefully!
I kind of agree with you there Dustin, but after reading a lot of feedback from people who have signed up for these offers, a lot of them don’t receive the goods until after the trial period has expired.
This is what I find un-ethical as I don’t think its all down to the couriers doing a bad job all the time if you know what I mean.
If only the consumers would do there research though, they could avoid these dodgy suppliers.
Yes, if they are built correctly.
I build these offers – I can either hide the fact that they are continuity programs or make it very clear. I might get more bang for the buck hidden – but in the long run being up front with your customers is the best option – ask Seth Godin – he posted about this today.
Yes they are ethical if 1) the terms are clearly defined 2) the product actually does what it says it can do 3) the customer actually receives what they pay for.
I always felt like I was cheating the customers shortly after I received a couple of complaints. But then the funny thing happened that half the free trial users wanted to keep receiving the product and didn’t mind the auto program.
The business model of re-billing is ethical. However, hiding the terms, pushing products that don’t work, making it impossible for the consumer to cancel and charging more then what is stated is not. Acai, RezV, BizOp… 95% of these offers are not ethical in any way.
I voted ‘No- and I wouldn’t promote them’
Since you are talking about rebill offers that we see all over the affiliate networks these days, I’d say it is completely unethical. The point of the offer is to *clearly* deceive the customer and make them pay a lot more than they think. Think of it this way, if *every* customer knew that they are going to pay $5 now, and $50-$100 in 7 days if they don’t cancel, how many would actually buy the product in the first place? I bet very, very, few.
For rebill offers like subscriptions to magazines, the terms are clearly stated on what they will pay each month or each year, with no ups and downs. These are rebil offers I see as completely fair.
The fact of the matter is that rebill offers such as Acai are clearly there to “rip” the customer, and I don’t see how anyone can deny that. Yes, people should read the TOS, etc. But the only point of the free trail is clearly to get a customers CC so they can be rebilled, whether they know it or not.
Yes and No, it all depends how they are promoted. If you’re tricking the customer into something they aren’t aware of, then yes, that is unethical. It’s all about proper disclosure, not forcing bump sales on the thank you page, and not making it impossible to cancel.
I agree with Patrick. Business income should never be about “tricking” somebody to make a buck. You want to your business to be about helping people and getting them better off than they were before they visited your site. If you can’t say they are better off after visiting, then thats bad business in my book.
Those who have nothing to hide hide nothing.
Let’s put it this way. If this was ethical and all up and up, why would these offers end all of sudden and get replaced with another offer just like it?
I never felt comfortable promoting these offers. Actually you and I had a conversation about ACAI offers and flogs last winter Jon.
I’m with Patrick on this one. Those flogs and farticles are just plain deceptive.
On the other hand you see fake testimonials all the time on TV and Radio so that tends to justify flogs.
How much worse are these Flogs than fake review sites though?
Geez, I struggle with this one…
I haven’t done much promoting with these products but I find two issues with them.
1. The fact that they don’t actually know what they will be paying. SAYING that they should read the fine print if bullshit, I don’t read the fine print of 80% of the stuff I do. For something like this you could argue I should, but not everyone is going to.
2. An even bigger problem I have promoting this shit is that to me it seems like it has no real benefits. We all know Acai berries don’t actually help you lose weight, and the cleanses all look like shit. SHOW ME ONE REBILL PRODUCT THAT IS ACTUALLY A GREAT PRODUCT AND YOU WOULD RECOMMEND TO YOUR FRIEND. That in itself would ease the tension a bit.
I challenge someone torespond to my above UPPERCASED sentence.
if it makes you money and it doesn’t break any laws, it’s ethical.
I think your confusing ethics with legalities, just because something is legal does not in any right make it ethical. (I’m studying a course called ethical hacking, sorry
)
rebills are not unlike how Book-of-the-Month Club operates. and they’ve been doing it since the 1930’s.
If I’m honest I would say no, for the simple fact that the rebilling is often not clear at the point of sale. If a customer feels as though they have been ripped off they will tell others.
If however the re-bill is clearly stated then it is fine as the customer can make an informed decision.
IMO – As long as the terms and conditions are clearly posted on the website and there is a way to cancel – then it’s fair game
There is nothing ethical and unethical in Business. What is to be looked at is, if the offer is one that will cheat you or, a genuine one? Also what is to be kept in mind is the fact that no one can rip you off, if you don’t let them to.
I for some reason missed the fact that Collin stated the rebill industry would be dead if people read.
Honestly, I beg to differ. People love free stuff, what more can I say. You offer something free, it gives them the chance to try the product/service.
Honestly, I wasn’t interested at all in a product that I ordered at one time called Alteril (sleep aid medicine.) I ordered a trial and it worked pretty damn good.
Although I didn’t stay with them (because they charged $37.00 a month for a 60 count box) – I did start using Alteril. You can get a 60 count box at GNC for $20
Saves me $17 but still, the company is making money
So the rebill industry wouldn’t be dead. Slowed down? Maybe. Dead? Nope!
[...] either case, I want to hear YOUR thoughts as well, and share them over at Jonathan Volk’s post on this issue as [...]
I took the Poll, and I voted yes, but at the same time I don’t promote the product. I think it is very fair, because people should be reading the fine print, it’s there for a reason, it’s to help people from not falling into unknown tricks, and with the print everything is there that is need to be known. We shouldn’t have to carry somebody with their hands threw an offer.
Till then,
Jean
Jdizzle – Netflix, the free magazine trials that Best Buy cashiers used to have to promote, and much more that I don’t need mention. I did the trial for one of the make money ones and it was decent enough but I canceled because I couldn’t figure out what I would be getting each month that would be worth the fees.
The rebill/trial concept is one that most don’t have a problem with.
How clear and obvious the terms should be is a different topic. Quality of the product is another. Customer service (how long it takes to get a person on the phone to cancel, etc.) is another different topic also.
Great Article!
[...] http://cashtactics.net/06/22/what-i-like-to-see-in-a-cpa-network/ http://www.jonathanvolk.com/how-to-make-money-online/are-rebill-free-trial-offers-ethical.html [...]
[...] Poll: Are Rebill offers ethical? [...]
Just beginning with Affiliate marketing I am not surprised to see the distribution of the answers above.
Successful affiliates can not but turn a blind eye and justify their actions with whatever means.
These are some blatant fallacies
- Mixing legislation with morals
There are 3 problems with that, first it’s wrong, second even if it was right due to the legislation processes the law would leg behind practices.
And thirdly, it’s NOT EVEN LEGAL, the law states that free = no obligation. (Now who is not reading the fine print?)
- Two wrongs don’t do right.
Having fake testimonials on TV does not justify doing a flog. If you have real information about a product go a head. but re writing the same deceitful information without testing it yourself, is just wrong. You know it is wrong when you expect other people to not do it to you.
- It can’t be morally wrong if people are falling for it.
You can see this line reasoning with all the yes sayers, albeit in more mitigating formats.
and all I can say is :
When your money making plan is based on a human flaw and not on providing real hard core value to your customer than you are a scam
This comment does not intent to offend anyone, the author is well aware of the slippery slop of seeing numbers (In the bank) instead of the people we should serve. I am just trying to raise a warning flag