Marc De,
Since you're one of the greater innovators in this biz and run one of the largest networks, please answer a question that's been bugging me for a while. What impact, if any, would MANDATORY rebill notifications to customers have on PPS networks such as ARS? Also, how does ARS plan to address the consequences or probable impact of the recently passed CAN SPAM act?
Thanks,
Gene
WebmasterLabor.Com
Quote:
Originally posted by Marc De
reynold - the only problem with that train of thought is the fact that lesser volume makes it MUCH easier to manage chargebacks. The more volume you do, the more open you are to fraud and the harder it becomes to manage your 'risk' with affiliates (which does cause a lot of fraud).
In regards to some people's marketing spin on free trials and chargebacks let me present some data that will show otherwise. Also I'm sure most billing companies with aggregate data could prove that FREE trials have a SIGNIFICANTLY higher c/b rate than paid trials.
1000 Free Trials - 30% convert to memberships = 300 transactions
1000 $2.99 Trials - 35% convert to memberships = 1350 transactions
Now out of BOTH groups the mentality of a 'FREE' customer is they shouldn't have to pay for ANYTHING. They are predisposed to dispute any payment on their card. So, of the 300 lets say 10 chargeback. 10 / 300 is 3.33% chargebacks or VISA FINES!!
Now, the $2.99 customer acknowledged to paying something up front and understands that nothing is for free in life. They are much less likely to chargeback, but just for the sake of arguement, of the same 1000 sign ups lets say 8 chargeback, 1/2 of which also chargeback the trial transaction. That is a total of 12 chargebacks or 12/1350 = 0.89% or under the 1% threshold.
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TondaB - I can appreciate you attempting to pick up some of our stragglers from ARS dumping free trials but can you keep your promotion out of threads discussing our program. I wouldn't want to start targeting your webmasters... That would get ugly! 
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