What % of customers cancel trial before rebill begins?

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I know it varies whether its bizop (subscription) or health fulfillment (product shipped), length of trial, etc, however I've heard rumors that customers are becoming more savvy and canceling before the term is over.

How do merchants and CPA networks deal with this? Do the merchants still pay out on the customers who canceled before the free trial is over? What % of people actually do cancel?

Share your knowledge, thanks!
 


why would you care how many people cancel? If the TOS doesn't mention any charge backs if the customer cancels the free trial why bother with this. Leave it to the advertiser.
 
thebigspender said:
why would you care how many people cancel? If the TOS doesn't mention any charge backs if the customer cancels the free trial why bother with this. Leave it to the advertiser.
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He cares because once people start cancelling, advertisers start scrubbing. You will also get booted from the offer if a majority of your customers are cancelling.
 
thebigspender said:
why would you care how many people cancel? If the TOS doesn't mention any charge backs if the customer cancels the free trial why bother with this. Leave it to the advertiser.
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no soup for you questioning my reasoning for a valid question, did you accidently press enter before submitting a cutting edge se1 ninja dickroll meme. don't answer that stay out my thread
 
thebigspender said:
why would you care how many people cancel? If the TOS doesn't mention any charge backs if the customer cancels the free trial why bother with this. Leave it to the advertiser.
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and that kind of thinking is how you dont get paid you fucking abortion
 
it depends on their terms. If the advertiser is shady then likely less than 5% but if they are totally lax and do what the customer says if its ppc or email traffic i imagine 15% .

What you should be more concerned is customers charging back after the charge vs. customers that cancel out the rebill. If the customers read the rebill terms and understand it about 70+% will cancel out.

This is true for all niches im assuming noone likes to pay more than what they see. But back to Spliffic's point there will definitely be a shitload of scrubbing and removal of affiliates if the scrub rate is too high for the advertiser to make $$.

But all that said some rebill models trully are successful and make long-term money but then again those are solid companies. If you are asking to become an advertiser make sure you know EVERYTHING before you start otherwise you will be fucked quickly.
 
Great topic, I'm interested in hearing what the networks have to say, specifically ones that run their own offers.
 
I would say that the majority of people don't cancell until they see their first credit card statement, that is usually when they realized they got screwed and need to take some action.

On the other hand, some people won't find out for months, because believe or not there are some folks that just don't check their CC statements ... i have quite a few friends like that...
 
It would depend on a few different factors; your traffic source, demographics, how disclosed the terms are, decline rates on the billing attempt, the product/service, whether it satisfies the consumer, the amount that's billed, and more things that i'm probably unaware of. I've seen continuity rates at 80% and as low as 40% for subprime demographics so it's hard to address the question in your title.

Since you're paid out immediately on a trial offer by pixel fires, the advertiser probably shaves if the cancellation rates are high(or shave network wide, regardless). So yeah merchants pay out on customers who cancel, but in effect a shave(pixel drop) is used to counter the cancellations, declines, help increase margins, etc. It's a process with some annoying flaws including not being transparent to the people getting the traffic to make the sales, an essential cog in the advertising machine.
 
More might cancel if an advertiser's initial charge is flagged as fraud. I know for a fact that Karaktr's Ultra Wuyi Pixie offer was flagged as potentially fraudulent by Citibank when I made a test purchase the other day (not through an affiliate link, and I don't have an affiliate account with them yet) - They said the transaction was manually keyed in. If an initial transaction is flagged by CC companies, you have to bet that the initial cancellation rate will be quite high...
 
Not something that can be answered easily.

A lot depends on vertical and demographic, aggressiveness of the support agents, monthly charge, shipped vs. virtual product, among other things. So numbers will vary from offer to offer. And even then, there are enormous differences on the same offer just based on the type of traffic and the promotions employed.

Ultimately that number is meaningless. Where merchants are getting hit the hardest is with approval rates from trial to sale, cancellations after the first charge, refunds and chargebacks.
 
icomunik said:
On the other hand, some people won't find out for months, because believe or not there are some folks that just don't check their CC statements
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THIS is the core of rebills. The backbone of the industry, so to speak. It's more people than you're giving credit for.
 
anyone think that something like a quality score indicator (reflecting the value and quality of leads to the advertiser) would be useful for affiliates to see in the nw interface on all offers they are working on?

That would make it possible for affs to adjust tactics and traffic sources with some level of information on which to gauge their efforts.

It would result in better quality for the advs and also a clear indicator to the affs that something they are doing is or is not working.

Might be a dream but its something I thought could be useful, whilst undestanding that it is dependent on the advs and nws adjusting and reporting data over a longer period of time. (allowing for rebill time etc..)
 
having worked with 20+ rebill advertisers, general successful rebill rates (less cancellations/charge-backs) are between 50-65%. the payout is based on a blended average of all the metrics. if your numbers are coming in substantially below average you'll be asked to stop promoting a campaign. the benefit of working through a reputable network is that you'll likely be paid for all the traffic you've sent until asked to stop, unless of course it’s fraud to begin with.

one advertiser who i've sent millions /month in rebill traffic barely breaks even on the campaigns but has an effective monetization machine built to remarket to the consumer database they've built, that's where they're making their real profits.
 
dosedtoaster said:
having worked with 20+ rebill advertisers, general successful rebill rates (less cancellations/charge-backs) are between 50-65%. the payout is based on a blended average of all the metrics. if your numbers are coming in substantially below average you'll be asked to stop promoting a campaign. the benefit of working through a reputable network is that you'll likely be paid for all the traffic you've sent until asked to stop, unless of course it’s fraud to begin with.

one advertiser who i've sent millions /month in rebill traffic barely breaks even on the campaigns but has an effective monetization machine built to remarket to the consumer database they've built, that's where they're making their real profits.
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^^THIS
Alot of fairly legit programs have even worse numbers than that, but the goal is to make it all up with the long-term value of those few customers who stay on for 5+ billing cycles (usually <10% of all signups), and focusing after-sale marketing new products to them.
 
dosedtoaster said:
one advertiser who i've sent millions /month in rebill traffic barely breaks even on the campaigns but has an effective monetization machine built to remarket to the consumer database they've built, that's where they're making their real profits.
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unless you have a strong backend, I wouldnt even dare start with a front end unless you like working for free.
 
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