People seldom improve when they have no other model but themselves to copy after.
~ Oliver Goldsmith
Which is why, dear Oliver, I have a “Bookmarks” section in FireFox with about 11,000 “models to copy after”.
2 Things today:
1 – The mad scientists over at A/B Tests just posted a case study that sorta confirms what I’ve been saying since 2006.
It shows how ONE change to a web page increased sales conversions of a company’s flagship product by 80.9%.
The secret sauce? I’ll give you a hint:
“It moves”
Check out their case study here (no registration or opt in required)
http://www.andyjenkinsblog.com/p3w
2 – “Optional Continuity”
Can we agree that “Forced” Continuity was a REALLLY BAD name?
Just by way of review, “Forced” Continuity is a type of OFFER where you agree to sign up for a service that will automatically re-bill you for continued access for that service.
Often times, in order to sweeten the deal, part of the menu of a FORCED Continuity offer might be a very low or even free upfront commitment.
Let me give you some examples:
1 Month FREE HBO and CINEMAX if you agree to sign up for 12 months.
First Month of NETFLIX FREE with a 6 month contract.
AT&T iPhone for only $199 with a 2 year voice plan.
60 day trial of XM RADIO for 90% off (With 12 month commitment)
AOL FREE for 90 Days
Or, how about something more internet marketing related:
You get this [Home Study Course] Free, just pay for Shipping and Handling – and you’ll be enrolled in the [Terrifically Awesome Sounding] Club for just [$27, $47, $67, or $97] per month.
Both the non-internet marketing and the internet marketing examples have one thing in common – “You can cancel at any time“.
In fact, NO! You CANNOT cancel your AT&T, HBO, or any other term-based contract without incurring some sort of EARLY Termination FEE!
So, why does the phrase “Forced Continuity” have such a horrible reputation in Internet Marketing?
It’s a complicated answer – but to summarize:
Fear caused by lack of control caused by hardcore SCAM artists who DO NOT DISCLOSE the reoccurring charges.
It gotten so bad that even GOOGLE decided to start suing people.
Bottom Line?
Forced Continuity is tricky.
So tricky that you better have an impenetrable reason for making the offer, a heroic customer service department, and you should probably do the “unthinkable” – send out a “Reminder Email” a few days before their credit card is charged for the continuity part of the program.
I know, I know! Transparency from an Internet Marketer… Weird.
What about this thing called “Optional Continuity“?
Optional Continuity is where you essentially make the SAME killer up-front offer (I.e. Just pay for shipping, etc.) but instead of FORCING the customer to at least TRY the Continuity, they are presented with…
… OPTIONAL continuity.
That takes some guts, eh? Clearly, the only reason FORCED Continuity works is because the value of the reoccurring sales from the customer will mathematically make the LOSS LEADER offer work.
But, what are the metrics on OPTIONAL Continuity? Hmmmm….
One thing is for sure – you must absolutely posses supreme confidence in your product and marketing abilities before you even consider an Optional Continuity offer – especially on a Physical Product.
(Now, watch this amazing pivot into a pitch)
So, when Mike Filsaime called me…
LOL! Man, that was smooth as cement…
Seriously, here’s an example of Optional Continuity – Filsaime is giving away physical copies of his Information Product called “The 7 Figure Code” for the price of shipping.
And during his little sales video, he does the unthinkable – he tells you 2 things:
1 – YES, you will be shown additional products available for discounted purchase.
2 – NO, You do NOT have to buy them to get the freebee.
Think it will work?
I’m going to give you my affiliate link to this offer:
http://www.andyjenkinsblog.com/7figureOC
Honestly, I don’t know what the commission structure is, but I will be getting tracking statistics to determine just how much juice an “Optional Continuity” offer has.
If it pans out, I think it’s going to change the way marketing is done. Honestly, Forced Continuity IS a bad name, but it’s a powerful (and in the hands of honest and well-intentioned people) sales technique.
However, the damage done from Akai berry (No, I did not bother to check the spelling of that) sites, and fake “Work for Google” offers may have sent forced continuity into the penalty box for a little while.
If Optional Continuity answers the “I don’t trust you” objection, and lets the customer focus on the value of the offer and the ownership experience of the product, it could be a massive win for everyone.
Mikes offer is here – he crafts the “Reason Why” video with real skill – and manages to blow a few hairs back when he drops the bomb that he’s leaving the info-products market.
Heh.
The worm turns.
{ 14 comments… read them below or add one }
The “hidden gem” here is the *reminder* to people before they get rebilled.
When you send that email something amazing happens – and it’s not what most people think.
Most people think this will cause a flood of cancellations. It doesn’t – you will get some, but you were going to get some anyway – and that’s way better than “late” cancellations which lead to refunds and chargebacks and headaches.
No – what really happens, assuming what you’re offering doesn’t completely suck, is exactly the opposite of what you fear:
When people are reminded of the upcoming charges, they go take a look at what they’re about to pay for. If it’s good, they stick. If it sucks, they bail. Same thing’s going to apply to one-time payments with a refund period – remind people and it drives consumption, which is good for you and them.
Well ’splained, Dan! It’s only good for all concerned: good for business, healthy for customer support…
Thanks for sharing this Andy! Also really enjoyed your thoughts on Forced continuity and optional continuity. And Dan, what some awesome insight
Love it! Isn’t it funny how when we do the right thing we get back what we put out?
Karma ain’t always a beeotch. =)
~Arlina
SocialMediaMgr.com
Oh hey, just FYI, that first link isn’t working for me today.
SHOOT, I am about to launch my first forced continuity site – now I have to worry about getting shut down? Does it help if its for a limited time (10 months)? Its a site for caregivers – people caring for a family member with Alzheimer’s. Even if i am giving away a full-length CD?
Funny that i did once even took the time to write to a forced continuity website, saying just that and the answer that i got was like if i was suggesting murder!
I have just put out an offer for one of my software products (worth $497) for free – just pay postage and handling. The reason I gave them is that it was a bribe (pinched that from Mr Kern) to take out the optional monthly support plan of $37. I’m currently getting 76% taking out the optional support. The first 2 days of the launch I was doing forced continuity – but didnt get a single sale. This is not an internet marketing product – its an accounting system add-on reporting tool, it seems the same issues apply right across other industries as well.
Great article! Thanks for sharing! FYI, you’ve got a broken link for the case study at the top of the post — the text for it is right (http://www.andyjenkinsblog.com/p3w) but the actual link is wrong (http://www.andyjenkinsblog.com/2009/12/10/p3w — gives a 404).
Hi Andy,
thanks for that post, very insightful!
Thanks too Mac for link
Take care
Martin
Hah, Just asked for conversion advice and here it is on your current post. I’ve heard about M. Filsaime’s offer. I’ll get it through your link as a thanks Andy!
Thanks Andy, yes this forced continuity thing was bugging me a bit as it always felt a bit “dirty”. I’ve found a bit of transparency does help!!
Paul Gold
Hey Andy,
I want to give you my wish for the new year.
AndyStomp,
Boy do we miss you!, with all the fluff and swill coming out of stompernet these days, it’s really hard to find any good SEO/SEM info these days. It would be great for you to have a SEO video series produced. I have been a member of SEO Braintrust since opening, but so far i feel like i am getting my monies worth. Most everything from them so far is already known to me, their have been several problems with them being able to keep on track. Too bad they don’t have an advanced program.
Best wishes in the coming New Year!
Lost Sole (soul)
Yep — the unscrupulous ones also get you with the $1 trial option these days too.
Even though it’s not mentioned on the sales page, you still end up on a continuity. They’re also wise enough to know not to enable Paypal as a payment option — making it difficult to unsubscribe in some cases.
I like your thoughts on continuity – I think those type of sales is what will eventually drive any business, but not too many people venture to do it for the lack of knowledge.
Great info and example.
Ana/YourNetBiz