Why Marketers Love Free Trials and Re-Bill Models
Free trials and limited time offer gimmicks have been around forever, and the reason is simple… they work. With the recent rapid rise of free trial and rebill offers (acai, weight loss, government grants, biz opp) hitting the affiliate space, and their massive $40+ commission payouts, it’s no wonder all of these companies on the backend are cashing in. They are getting people for a quick buck up front, the billing them out the rear later on (some offers in just a few days!). Whether you run these offers or not, they are all still based off the marketing principles listed below.
People are Lazy & Forgetful
One of the best reasons why free trials, re-billing and subscriptions are so successful, is mainly do to the fact that people are lazy and forgetful. How many times have you signed up for a free trial, put your credit card in, got your free days… then forgot to cancel. POW! You are now on rebill. For some people, months go by and keep getting re-billed and never even use what they are paying for.
Too Good to Pass Up
Sometimes an offer just seems to good to pass up. “Act Now! Try for 30 Days for Only $1.99“. Though the testimonial (whether its real or not) seems too good to be true, the mere cost of only $1.99 to give it a try, pulls a great percentage of people in. Then before you know it… you forget to cancel, and get auto subscribed.
Inventory vs. No Inventory
One of the benefits of setting up an online business with the re-billing/subscription model, is you don’t necessarily need to hold inventory or ship anything out. There are thousands of business mentors and “make money” programs that build one platform/site and simply charge members to access the site, and bill out each month. Instead of having to provide something special for each paying member, they can just produce one piece of content, and offer it to all users. On the other side, you have all of these weight loss offers, shipping out millions of bottles for each customer, then instantly re-billing their customers every month for a new shipment. Both methods are effective and profitable.
One Time Sale = Residual Profits
Most of the weight loss and biz opp re-bill offers out there are paying in the $40+ range, but are charging less than that for the initial signup and first shipment. How can that be? Most of these companies have accurate stats that show once a customer signs up, they will cancel after and average of 2-4 months. If the supplier is able to charge $1.99 for a trial fee, then hit the user for $39 a month (and knows the average person is on board for 4 months), they are able to pay out the high commissions in the $40-$60 range. On the down side, a lot of these new suppliers are making it extremely difficult for people who sign up for the trial period, to cancel their orders and re-billing.
Though we are seeing an increase in flogs (fake testimonial blogs) and possibly a crack down on how they are used. The bottom line is that free trials and re-bills work in many different cases, and people will continue to sign up to them for the same reasons as always.
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