I’ve been following the scary attack stories featuring the underwriters at Visa and MasterCard, it seems as though they’re shutting down all Forced Continuity sites that have questionable sales tactics….it’s been a long time coming – and I’m glad something is being done.
What’s been happening is Visa and MasterCard are putting the breaks on and in some cases killing merchant accounts that pitch “Free with paid Shipping”, “Free Trials”, and “Opt-Out (They call it “Negative” Continuity).
Here’s what Ryan Lee said during a recent webinar about Forced Continuity Sites – I took some notes while I was listening and thought I’d share them with you:
1) IMPORTANT LEGAL STUFF: A lot of businesses that are continuity sites (sites that have a “sign up” for a monthly product and/or service) are being shut down by the underwriters from Visa/MC/Discover because of suspicious and deceitful practices.
2) These businesses have lost all their monthly paying customers in a SPLIT SECOND! NO QUESTIONS ASKED! – THIS IS HAPPENING RIGHT NOW!
2) No more “FREE TRIAL” verbiage, it’s a taboo phrase now, instead use $1 trial (or something similar). The problem is customers think Free is Free when it’s not, they get billed after a period of time. No more “try it free for 1 month”…those days are over, unless you want to suffer the financial damage that will follow.
3) This text (see below) or something like it, needs to be 100 pixels close to the order button and in at least 12 point type (not at the bottom of page in 6 point type like many deceitful companies have been doing)
4) You can’t have pre-checked boxes anymore (i.e. a box already checked with text next to it that reads “I will be billed monthly”) If you use a box for the customer to check, it needs to be unchecked in it’s natural state.
5) Test the context of the campaign by asking someone who knows nothing about online marketing to read it (mom, dad, grandmother) ask them what they think will happen if they were to sign up….My opinion is that this is the BEST acid test.
THE GOOD NEWS:
6) The Gold Rush of Continuity Sites is happening within the next 1-3 months, those who are shady are getting out because of fear from these new tight restrictions, which is BIG NEWS for those of you out there who are considering running an honest online business with sales being generated by way of a continuity system. it’s a great time to dominate niche markets….so many niches have not even been touched – selling e-books are good, selling CD’s are good but the BIG $$$$ is in continuity sites!…always was and always will be!
Personal note:
All in all it was a great webinar and an eye opening education on my part over the last few months, it will help me to protect my clients from unexpectedly being shut down and losing all passive residual income. The exciting news was that continuity sites are being considered THE INTERNET GOLD RUSH!
If you want more information or if I’ve spoken a few inches over your head, please get in touch with me, I ABSOLUTELY LOVE teaching people about this stuff!
-David Englund
