The problem with online continuity rests not confused consumers who don't understand how to read, but rather with the horde of marketers tripping over themselves to push the next guy out of business by doing things that invite trouble for everyone. Trouble that is only starting to show up, but is going to get much worse. Lets be clear. This isn't a consumer problem; it's a marketer’s problem, one that we brought upon ourselves, and one with no clear solution to solve.
Lets first start from the consumer side. While the rules can be spotty and difficult to interpret, there is a fairly defined set of “do’s and don’ts” on how to market continuity to a consumer. While often time left to the interpretation of either the marketer or the attorney advising the marketer, there are guidelines that will most likely keep the marketer out of trouble. Disclosure, testimonials and use of certain words “free” tend to be the main areas that come under assault. With some good legal counsel, setting up an offer that safely falls within the FTC guidelines isn’t that hard.
Where marketers trip themselves up is primarily around two main topics, Price and Disclosure.
In the quest to drive volume, Marketers start competing with each other first and foremost on price (paid to affiliates). Affiliates can be a rather ruthless bunch, switching from offer to offer solely on what they get paid (and they should). Marketers who want volume will continue to move the price up to grab the volume. Now lets be clear. The only way they can afford to do this is by getting continually more aggressive with the consumer (by way of what they charge, or what they disclose). $80 per month for a product that costs you $3 might look great in theory, but is likely to cause a whole host of problems that manifest themselves down the road. Chargebacks, BBB complaints, Rip-Off Report listings, and hungry attorneys are only the tip of the iceberg. More often these problems only begin to manifest months and months down the road, when volume is likelier to be higher.
Disclosure relates to two main topics. How the offer is presented to the customer (for example what you say on landing pages and the wording you choose to use). Use of the word “free”, placement of pricing, and other obvious ones are what I’m talking about here. Secondarily, it relates to how difficult you make it for the consumer to understand what they are signing up for. In this area, marketers have gotten in real trouble by becoming “terms and conditions marketers”, where they liberally apply all kinds of forced upsells hidden deep in the terms and conditions. Again, this is all in the hope of generating more money out of the consumer as quickly as possible, so as to outbid your competition.
I believe it’s a mistake to pass judgment on marketers for trying to employ the most efficient (and in most cases legal) methods to drive a consumer sale. What I am saying though, is that without everyone agreeing to some basic guidelines (I know, great luck in that happening), we will continually be at the mercy of regulatory bodies like the FTC and Attorney Generals, and possibly worst of all, Visa and Mastercard.
The solution is not easy nor one likely to have an obvious outcome. What is likely to happen, however, in light on this recent crackdown, is that it should open the door back up again in several months for those marketers who are committed to staying in the space.
For more of my opinion with respect to online marketing, please visit me at www.Media-Mentors.com
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