07-11-2003, 07:49 AM
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Confirmed User
Join Date: Dec 2002
Posts: 495
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Quote:
Originally posted by Hooper
I'm sorry fm but i still disagree with you.
100 $1 trials
40 converted members
140 transactions
then suppose that one of those members charges back. *if* he charges back both of them (which is not always the case) then you have a 1.42% cb ratio
if he charges back only the recurring transaction you have a .7% cb ratio
if you do free trials you have:
40 converted members
40 transactions
then supposed that one of those members charges back. you have 1 transaction chargeback. which leaves you with a 2.5% chargeback rate.
Now amplify those numbers times hundreds or thousands... bottom line is that you cant argue with math. free trials result in a higher chargeback % regardless of the fines involved.
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Hooper is right. |
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