Why Offer Rebills At All?

50 rebills

First, people have more money than most here give them credit for.

Second, why not charge $100 to get access payable in 5 monthly installments of $20. You can't "cancel" something that you are simply making payments on because you already agreed to the full term of the sale.

The way some programs are run, by the time you're done with the "FREE TRIAL" that rebills in 24 hours at $40 and the two prechecked cross sells that rebill @ $40 each they're already taking in $120....so if they switched to your method they'd be taking a pay cut.

Ok there are some paysite program owners in this thread which is good to see. Some of the arguments for this super high end initial purchase are humorous at best. Lets go over a few.
1. Card not present transactions. Do not care if it is non tangible or tangible, it is high risk. Chargebacks are easy. Even if you have an item delivered and signed for the chances are slim you will get money out of them from a chargeback.
2. Non tangible item, no delvery address, so zero proof it was the card owner who ordered it. Even if they have a static ip to their house. You can not proove it was actually that person. Also assuming you could costs to chase people all over the world for 100.00 a pop would just be idiotic.
3. Sticker shock. You would scare away alot of potential buyers.
4. Many sites, even those who offer fantastic members area's love forgetfull customers. Many may never notice a 25.00 charge each month, where as a 100.00 charge sticks out on statement.
5. Justification of value. Just try to justify costing that much.

Now having done many trial-1m-3m-6m join options on sites. I can honestly tell you that trials have few to no fraud and turn into rebills often. One month joins stay at under .02% fraud and rebill several times on average. Now when I look over those 3 month to 6 month options. I can tell you the fraud and chargeback rate is a great deal higher. Often on a six month join they will chargeback around month 4 to 5. Leaving you 100-125 or so less than if they went monthly.

Now loyalty bonus's do work well and keep a monthly alot longer.
Ok I gave my braindump on issue.

Edit totally forgot one thing - "if everyone did this" This industry is far from socialist or even getting along much. You sell a site at 100 a pop someone will offer same amount of material for less. It is competition and capitalism at work.

Similar laws apply to the EU

interesting thread.

I have a lot of experience with different pricing options..

The most profitable with the least amount of fraud is a mid priced monthly membership -- $19.95 or $24.95 with no trial..

$19.95 with no trial gets you around $80 minus processing fee.. (4 months average retention over about an 18 month period)

$4.95 converting to $39.95 only gets you about $68 minus fees with a LOT more chargebacks than $19.95 flat..

If per sign up programs could get rid of trials the industry would be so much better off but unfortunately that's not possible..

So we pay our webmasters $50 per sign up on $29.95/monthly memberships as opposed to just $30 on the $4.95 trial.. they're NOT almost twice as hard to sell so it's worth it to promote those..

- Donnie

1st : Chargeback of 100 $ hurt more then 30 $ chargeback

2nd : Lots of people aren't ready to pay 100 $ for porn

I agree and 100 dollar chargebacks are a much quicker way to get to 1 %

Yep and I copied that 99.95 price option from your site and put it on my site and people WILL buy it every once in awhile....Nice chunk of change for one signup.