What % of customers cancel trial before rebill begins?

Status
Not open for further replies.
I can tell you from our products, that we are seeing re-bill rates between 40-70%, depending on the traffic source. All of our products are neutraceuticals (muscle builders, cleanse, teeth whitening, etc). Our products are all physical products and our trial period is 14 days from date of purchase. If we see sources coming in under 40% rebill, we shut them off. Anything above, we can generally work with at some rate. Hope that helps.
 


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.
Click to expand...
THIS. fact.
 
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.
Click to expand...

That one advertiser that barely breaks even needs to re-evaluate the way he does business. The pills and shipping and initial cc fees will be paid most of the time by the initial shipping charge, then when the rebill hits in 15 days he would be able to pay the traffic source ( affiliate, network, ppc costs etc) and still pocket 20-30$. Even if a third of the signups dropped out before the free trial is over ( highly unlikely ) they would be ahead of the game. And then the majority as some mentioned previously want cancel until they get the first billing ( day 15-20 ) for the full price. So the owner of the offer/product would make a profit in the first 15-20 days of the signup.

The bigger issue would still be combating the people who try and use giftcards to signup i would think.
 
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.
Click to expand...

Exactly, these days most advertisers i work with are lucky to break even on the front end with charge backs/cancellations. If they can do that then all the back end revenue is straight profit---these days its not much thats why its a fucked up cycle of having to get high volumes, compete with high cpa's and put it on the line for merchants just to make 1/10 of what you could 2 years ago.
 
All our herbal advertiser are profitable with an average of 60%. We range from 50-70% and investigate any traffic source under 50%. We have found that bizops are a bit lower at an average of 55%. We run a tight ship, these rebills are high and dont contain much fraud. Rebills in general are effected by numerous factors including 1) disclosure of terms, the more the advertiser discloses the more cancels they will receive. This can be on the actual page, the creative, or after the trial is purchased in the confirmation email or in the actual package. 2) on the publisher side the traffic source can lower rebills. If you are marketing a blog type page with two offers, the second offer will get a lower rebill if the first offer bills the customer first. At times the first offer might have a shorter trial date giving them an advantage.

Regardless of rebill percentage, as long as it is not fraud, the publishers will and should get paid.
 
Of course it matters how many people stay on. Advertisers are directly monitoring your numbers on how many of your signups rebill and how many fall off. They have the stats and will cut you out if you don't make the grade. You want to find out what that cut off point is so you can stick around but also have a good conversion rate on it.
 
Mill said:
That one advertiser that barely breaks even needs to re-evaluate the way he does business. The pills and shipping and initial cc fees will be paid most of the time by the initial shipping charge, then when the rebill hits in 15 days he would be able to pay the traffic source ( affiliate, network, ppc costs etc) and still pocket 20-30$. Even if a third of the signups dropped out before the free trial is over ( highly unlikely ) they would be ahead of the game. And then the majority as some mentioned previously want cancel until they get the first billing ( day 15-20 ) for the full price. So the owner of the offer/product would make a profit in the first 15-20 days of the signup.

The bigger issue would still be combating the people who try and use giftcards to signup i would think.
Click to expand...

Stop thinking the in that case, because your are totally wrong.

1000 Leads, $42,000 in commission

Including cancellations, on the higher end you are looking at 60-65% that will get billed, so that's anywhere from $47,400 to $51,350 assuming a $79 subscription. And that's 3 weeks down the road or so. Now let's further assume that you are actually providing support and are also giving out refunds, then you are looking at another 8-10% in refunds easily. Chargebacks and processing and transaction fees add up to another $3,000.

Before even factoring in paying the support agents, you are slightly down or breaking even. You are delusional to think that there is any advertiser out there that is making $20 a lead by the time the rebill kicks in. The majority is being made on the backend.
 
Mill said:
That one advertiser that barely breaks even needs to re-evaluate the way he does business. The pills and shipping and initial cc fees will be paid most of the time by the initial shipping charge, then when the rebill hits in 15 days he would be able to pay the traffic source ( affiliate, network, ppc costs etc) and still pocket 20-30$. Even if a third of the signups dropped out before the free trial is over ( highly unlikely ) they would be ahead of the game. And then the majority as some mentioned previously want cancel until they get the first billing ( day 15-20 ) for the full price. So the owner of the offer/product would make a profit in the first 15-20 days of the signup.

The bigger issue would still be combating the people who try and use giftcards to signup i would think.
Click to expand...

+1 - I was reading his post and said WTF?
 
I run a RezV offer and see around 70% rebill rates on day 15 and then around 50% on day 30.

Profit is not made until day 30, or even day 60. Processing fees, processing reserves(10-15%), refunds, chargebacks eat right into the profit margin. Call center is relatively cheap. Manufacturing and fulfillment costs aren't that bad either.

The thing I've learned about increasing rebill rates is adding value for your customers. Send them free e-mail newsletters. Put a glossy postcard in the package with the bottle. Make them feel like they're getting something valuable and they'll stay on the subscription.
 
Clearly you are wrong. Mill and Foreigner here say so.

But yeah, forgot the reserves. So that's another $5,000 down.
 
Most consumers check their cc statement online right away. If they see a pre-auth a very large % cancels right away.
if they do not see a pre-auth, so some advertisers run the offers without pre-auth, they bitch 2 months later and will chargeback.
The only way for advertisers to actually make the $45 and higher cpa's work is add a hidden cross (ouch another chargeback) or hide the cancel procedures which then forces rebills to go through however this again results in chargeback hell.
5 or so advertisers went out of biz the last 5-6 months?
All with the same excuse: bank is freezing the payouts, non compliant etc.
A bank does not freeze a payout if the business is clean.
Just 2 weeks ago one bank got hit with 60.000 chargebacks!

The $ 40.00 - $ 50.00 cpa free model is a dead model.
All networks are requiring now more visible terms which will kill conversions however the ones that actually do buy then really want the product.

Payouts will go down as a lot of advertisers are running out of banks to process the cards on.
 
ya its quite high that check their statements online around 50-60% lately. Regarding profits dont forget the scrubs people- if you send 50 leads and 6 or 7 get scrubbed that = free customers, especially in bizopps
 
Mill said:
That one advertiser that barely breaks even needs to re-evaluate the way he does business. The pills and shipping and initial cc fees will be paid most of the time by the initial shipping charge, then when the rebill hits in 15 days he would be able to pay the traffic source ( affiliate, network, ppc costs etc) and still pocket 20-30$. Even if a third of the signups dropped out before the free trial is over ( highly unlikely ) they would be ahead of the game. And then the majority as some mentioned previously want cancel until they get the first billing ( day 15-20 ) for the full price. So the owner of the offer/product would make a profit in the first 15-20 days of the signup.

The bigger issue would still be combating the people who try and use giftcards to signup i would think.
Click to expand...

Have you ever run a rebill offer? I have never seen any of the above hold true. Cancellations and chargebacks for products that I have had direct backend knowledge of avg in the mid 60s%. So they were rebilling 35-40%. That is an avg across a handful of niches and a handful of advertisers.

Combating giftcard signups are not hard at all with today's technology. So that's not an issue. Most savvy advertisers don't allow giftcard transactions to go through.
 
Status
Not open for further replies.
Top Bottom