Yeah Visa!
First, please let me say that I AM NOT AN ATTORNEY, NONE OF THE
INFORMATION CONTAINED ON THIS PAGE IS TO BE VIEWED AS
LEGAL ADVICE. YOU NEED TO CONSULT YOUR OWN ATTORNEY
AND EVEN MORE IMPORTANTLY USE GOOD MORAL JUDGMENT
WHEN CREATING, DESIGNING, AND STARTING YOUR OWN ONLINE
VENTURE.
AGAIN, I AM NOT ATTEMPTING TO PROVIDE LEGAL ADVICE, ONLY
TO SHARE WHAT HAS BEEN SENT TO ME FOR YOU TO REVIEW
FOR YOUR OWN INTERPRETATION AND USE :)
This email you find below was received on Jan 27th from a popular
merchant provider we have recommended in the past.
The ONE AND ONLY real kicker is the banning of additional continuity
programs on an up sell basis. The reason for this one is real simple, people
abused the value trojan model :( Like we say, anything can be used for
good or bad. If used for bad, and consumers are not CLEARLY aware the
entire model will receive a stain on it. which now it did! :( :( :( I am deeply
saddened when I see people bury things in terms. We have come so far
as an industry to have this kind of thing continue. Like we say over and
over, if it can be viewed as negative, turn it into a positive! But these who
abused did not. They decided NOT to feature and customers were left not
aware or not remembering. Ultimately, the customer will ALWAYS WIN
and thats how it should be!
OK, this is NOT GOSPEL guys!!! It will change! Do not consider anything
you see or read from me, or ANYONE else but the FTC to be gospel. Only
the FTC writes the rules and most of them are things your mom told you
to do anyhow! :)
Copy of the email received yesterday (to be used for illustrative purposes
only)
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
| DIRECT RESPONSE BEST PRACTICE GUIDELINES FOR MERCHANTS
TRIAL OFFERS Marketing models that employ “Free-Trial”, “Deferred Billing” and/or “Shipping Only” are considered trial offers for purposes of this communication. Consumers must be receiving a tangible good or contracted service in exchange for charging of payment cards. Incentivized discount offers are acceptable when the cardholder is receiving goods 1. Avoid using terms in your marketing and offer presentation such as “Free”, “Risk Free” or any similar and potentially misleading phrases when consumers will be enrolled in a monthly continuity program at the end of a trial period, or will be paying a deferred charge for the trial period. The phrase “Free Trial” is prohibited unless there is truly no cost or obligation incurred by the consumer. 2. ”Shipping & Handling Only” offers must be a fair and accurate shipping charge reasonable to be accrued by the merchant for providing the product. 3. Trial offers must be extended for a minimum of 10 days. 4. Trial periods should not begin until the product is shipped to the consumer. MARKETING 1. Avoid creating a ‘false sense of urgency’ for the consumer. Unless the consumer’s ability to order is genuinely taken away after a specified timeframe or order count is reached, this practice is prohibited. Use of applications such as countdown clocks, tickers, or language such as “Offer Expires Today!” is also prohibited. 2. Product claims, by law, must be truthful. Claims regarding effectiveness must be substantiated by clinical research conducted to support the claims, and consistent with the formulas and ingredients in your product 3. Qualifications for trial periods of a product should follow pre-determined rules disqualifying consumers who do not meet parameters, including but not limited to: Age, Weight, Height, and Location. 4. Unreasonable claims or guarantees are prohibited. Examples of claims considered unreasonable are: “Flushes Pounds”, ”Flushes Toxins”, ”Builds Muscles” “Free Money”, ”Instant Money” - Stating that the product can substitute the income of a full time job - Stating that the product has been successfully used by an unrealistic or unsubstantiated number of people ENDORSEMENTS/TESTIMONIALS: 1. Endorsements and testimonials of user experiences must reflect the true and honest opinions of the endorsee(s). 2. Endorsements and testimonials provided must present a clear picture to consumers of realistic results of using the product. If advertisers do not have substantiation of a specific claim or endorsement, then generally expected results must be clearly disclosed and backed by substantiation of any claims. 3. Blogs used for promotional purposes must be in compliance with published FTC guidelines, representing an accurate and full representation of the endorsee, or clearly designated as a fictional story if developed internally for marketing purposes. 4. News Sites published in marketing materials must be in compliance with published FTC guidelines, and must be clearly presented to the consumer as an advertorial. Written consent should be obtained from a media outlet prior to using the logo. 5. Implied celebrity endorsement by use of an image in your marketing is prohibited without express legal written consent. AFFILIATE MARKETING (CPA) NETWORKS A significant contributing factor to Historical Excessive chargeback violations has been the utilization of CPA Networks. Transactions generated from internet traffic and all other lead sources must be managed and monitored for potential fraud using an approved system. Third Party service engagement may be a requirement for account approval. 1. CPA Networks should contractually be held accountable for monitoring traffic generated from participating marketers. 2. Merchants must have monitoring plans in place to detect suspect traffic and monitor Affiliate and Sub-Affiliate performance. BILLING TERMS DISCLOSURE The FTC has recently published guidelines regarding “Negative Option” enrollment programs and is taking a very aggressive position against merchants utilizing/employing this business practice. Recommendations taken in part from the FTC’s website may include but are not limited to the following: 1. Negative Option disclosures must be clear and conspicuous to the consumer and comply with published FTC 2. The full price of products sold must be within reasonable “fair market value” 4. Consumers must be required to validate understanding of the terms of the offer twice during order submission. - Terms must be in a minimum 12-point “easy to read” font. BILLING TIMEFRAMES 1. A merchant may not bill a consumer the full price twice in a 30-day span. An acceptable billing cycle example would be: - Day 1 – Consumer signs up for a 10 day trial offer with paid shipping of $4.95 charged at the time of order. 2. Consumers should not be billed prior to shipment of products. REFUND POLICIES Merchants must not make it difficult for consumers to exercise the disclosed cancellation procedures and all cancellation requests must be honored in accordance with the stated terms of the transaction. 1. Refund policies must be disclosed prior to the sale completion. Establish a clear, concise statement of your refund and credit policy. Your policy should be consistent with the objectives of your business and the products or services sold. 2. Merchants must not require return of any trial offer product samples in order for the consumer to receive a refund, or cancel their ongoing subscription. 4. Refunds should be for the full amount charged including shipping and handling 5. All future billing to a customer should be canceled when a refund is issued. 6. All future billing to a customer should be canceled when a chargeback is received. BACK END OFFERS, AKA UP SELLS OR CROSS SELLS: All sales should be directly between the business entities (merchants) processing the transactions and the consumer, with consumer authorization for all purchases. 1. Under no circumstances can consumer data be shared with another company as this is a violation of Brand 2. Forced and hidden up sells are strictly prohibited 3. Up Sells with recurring charges are prohibited, regardless of consumer opt-in or acknowledgement of the offer. 4. A one-time bonus offer may be extended to the consumer for an additional product offered by the same company as the initial transaction. The price of the bonus offer must be clearly disclosed and the consumer must acknowledge the terms of the sale prior to providing credit card information for completion of the sale, and again at order confirmation/ submission. DESCRIPTORS 1. ALL MERCHANTS DEFINED AS OFFERING A DIRECT MARKETING PRODUCT WILL BE ASSIGNED A DESCRIPTOR FORMATTED TO COMPLY WITH VISA REQUIREMENTS, TO INCLUDE AN *. 2. Billing descriptor should be consistent with the website name, marketing materials, purchase confirmation, and shipping notification (if any) sent to the consumer. FULFILLMENT 1. Orders must be fulfilled in a timely manner. It is recommended that all products be shipped within 48 hours (2 business days) from the date of order. 2. A confirmation email should be provided for all online orders with physical shipment, within the prior 5 days to shipment or 2 days following shipment, including the following information: - Merchant contact information (at minimum a consumer service phone number) - Merchant contact information (at minimum a consumer service phone number) CUSTOMER SERVICE: 1. Multiple methods of cancellation must be provided for consumers to cancel or request refunds, including at least two options of contact. Example of acceptable service channels include: phone, email, mail, and online chat. Phone support is strongly recommended as one of the options. 2. ”Contact Us” information including contact methods and hours of availability should be prominently displayed in all marketing, offer and payment pages, as well as included in purchase confirmations, invoices and any other communication with consumers. 3. Customer Service must be easily accessible and available during reasonable business hours 4. Refund and Cancellation Policies must be followed as disclosed to the consumer at the time of order 5. Hold times to reach Customer Service must be less than 2 minutes. 6. After hours voice mail should include a greeting that properly identifies the merchant to the consumer, provides hours of Customer Service availability and an expectation for call back. RESOURCES: The FTC has published the regulations along with many resources online for businesses and consumers. A few helpful links are included below: Commercial Practices Part 425, Use of Prenotification Negative Option Plans: Prenotification Negative Option Plans: Advertising and Marketing on the Internet: Dot Com Disclosures: Direct Response industry publications have provided articles with some clarification regarding these guidelines: http://www.dmnews.com/get-comfortable-with-new-ftc-regs/article/136023/ |
So to summarize, there are a LOT of nervous people right now because
they are unsure of what is really going to happen.
However, here are the things we know will NOT be changing. (again NOT legal advice here guys)
1. Survey interactions work
2. Consumers DO NOT NEED FREE to click!
3. Consumers will pay full price for security now (after so many freaked them with scummy trials)
4. Follow up systems outlined in CPA Tsunami are now more important than ever!
5. Up Sells will probably always be ok, just be sure they know what they are doing!
6. Media Rates are going down
7. Last year I sounded paranoid to many marketers, this year, everyone sees why
8. There will be HUGE opportunity for those who are willing to spend the time building real follow up systems!
10. Processing is still VERY possible and now, we will see merchs taking even GREATER care of those who play by the rules
11. CPA Networks will still be HUGE.. they and the advertisers will just have to practive more responsibility and accountability.
12. The bad practices will not dissappear overnight, so while this is a step in the right direction, its not over yet! (just today someone asked me to promote a site that had a flog.. i said “are you serious”, “i never would before, why the heck would i start now!”. Needless to say, the answer was a HUGE NO!
13. Theres SO MUCH more, but i gotta get back to work you guys.
So my view for 2010?
TO START OFF 2010
1. surveys rule the world
2. straight sale is coming back post survey and REAL follow up
3. Video will rise as the king
4. Many will want to promote through banners like we have been
5. Many will leave the online space
6. Some will blame everyone else for there failures
If I can leave you with ONE THING.. its this.
The internet changes constantly as it “grows up”. Dont hold on to what anyone said, even if it was just last week, because things change fast! And while you may want to hold on to a certain method, those who adapt there methods first, succeed faster.
Happiness & Success,
- Mike
Yeah Visa!
Do you do blogroll exchanging? If you want to exchange links let me know.
Email me back if you’re interested.
[Reply]
Great Video Mike! Thanx for sharing :-)
[Reply]
Thanks for the article Mike. It’s sad that in our society we have to enforce ethics. But there it is.
David
[Reply]
Mike Hill Reply:
January 28th, 2010 at 4:09 pm
Agreed with my entire soul here David. It is Sad, BUT, at least there is a + for the – out there :) Proud to have so many people agree with me on the side of the positive :) for so long i was a lonely voice yelling to an empty room of marketers to play fair! Thanks for your comments David :)
[Reply]
Rob Reply:
January 28th, 2010 at 8:44 pm
Hej Mike – It was your integrity and active comments about cleaning up IM, that brought me off the sidelines and into buying programs in the first place!
Personally unless I get that sense of – integrity as a priority – from someone pretty soon in the relationship, I just unsubscribe.
It’s ‘like attracts like’ in action! So here we are!
Rob
[Reply]
Mike Hill Reply:
January 29th, 2010 at 1:54 pm
couldnt agree more buddy, like attracts like :) Thats why we name our company something to do with our mission statement and NOT just “Marketing guys”..
The ban on upselling continuity is a shame — hopefully someday that will get reversed. But I’m with you — it’s nice to see somebody finally cracking down on a lot of the shady practices that have given internet marketers a bad name.
[Reply]
Good stuff as always Mike. You are one of the few dudes I listen to without question.
[Reply]
Mike Hill Reply:
January 28th, 2010 at 4:10 pm
Thanks P, we hope we make just a small difference in the way people think and act. Got some cool stuff been brewing for a couple months, cant wait to share it with you guys soon :)
[Reply]
“Some will blame everyone else for there failures” Very true statement! Bookmarked this page for later :)
[Reply]
Mike,
You are on the money and people who are doing business the right way will be rewarded. Bravo! Thank you for your views. Watch my video…I am already ahead of the curve.
The Lead King
http://www.theunfairadvantage.us
[Reply]
Mike – Thanks for the heads up. I didn’t get my notice yet but the advance notice is great!
[Reply]
YES ~ YES ~ YES!
Thanx for speaking Truth Mike ;-)
It is time this industry came clean And got cleaned up.
You are a Healthy Leader, not to mention a powerful example of ease and grace under pressure.
Much Peace and Prosperity from the Ground Up!
All the Best,
Diana
[Reply]
So did I read that right.
Upsell with continuity is not valid anymore but if you did continuity on the initial full price offer that is okay?
[Reply]
Mike Hill Reply:
January 28th, 2010 at 4:25 pm
For this ISO “at this time” that is what they are saying publicly :) Does this mean its like this for everyone and will always be? I seriously doubt it. The pendulum will have to swing back to the middle again :)
Read the entire doc and I wish I could give you a solid conclusion on this one Tom, but if you have any questions, when you get yoru own notice from your merchant providor, just let them know after you have gone through their entire doc (to respect there time) and call with a list of questions. Because this is uncharted waters, I think everyone is just going at there own pace here.
Best wishes,
- Mike
[Reply]
Murray Reply:
February 1st, 2010 at 10:06 pm
For a while I’ve been offering low cost membership at end of process which requires forms to be filled again and terms agreed to.
If the offer if good enough, you still get enough takers to make it viable.
[Reply]
Mike Hill Reply:
February 2nd, 2010 at 6:37 pm
Thanks for the feedback Murray, could not agree more!
The bigger problem lies ahead if the “bad apples” cause enough of a problem that some bored legislator takes on Internet Marketing and starts with the ” we need to regulate this and tax that” chant again. Please folks behave or business will get harder and there is no GOOD reason for it.
[Reply]
Thanks for clearing that up Mike. I have been following this on the warrior forum and am happy also this model is being adjusted. Now I just need to adjust my own offers since I have been offering a free plus shipping CD offer myself. Keep up the awesome work Mike!
Dr Dan
[Reply]
Mike Hill Reply:
January 28th, 2010 at 4:32 pm
Thank you Dan!
[Reply]
Hi Mike: I am an old man (76) living on social security and
have not been able to buy any of your products (nor do I have the funds to do PPC). However, I just wanted to tell you I appreciate your candor and honesty. It’s refreshing to see someone in your business that plays by the rules that our parents taught us to live by. Please keep up the good work. I look forward to the information you provide in your emails — the videos are great! Respectfully, Robert
[Reply]
Mike Hill Reply:
January 28th, 2010 at 4:35 pm
Thank Robert! I should be commending you! All to often I see folks 20-30 years younger than you put themselves into a box that does not allow them to continue to “grow” as human beings in any area of life. The fact your listening, growing and participating, puts you LEAUGUES ahead of dare I say 95% of your “Peers”.
Thanks Robert!
- Mike
[Reply]
Hey Mike,
Great seeing you on the cruise again. ‘King Quinn’ is still talking about his precious ‘Princess Nicole’ he can’t wait till next year.
Hey, I just wanted to say a great big thank-you to you for your video and most especially for sharing your email with us. I really appreciate having a better handle on the ‘dos’ and ‘don’ts’ of the internet.
My business means a lot to me. I mean I’m being an online role model to parents, kids and teens, so I definitely don’t want to make any of those mistakes.
I’m blessed that I have a great connection with my list and honesty has always been top priority.
Hey, thanks again Mike, you’re awesome. So glad we met.
See you next year. Talk soon,
Cheers…Amanda van der Gulik…Excited Life Enthusiast. ;o)
[Reply]
Mike Hill Reply:
January 28th, 2010 at 5:02 pm
yeah, you have to be yourself and you have to have that connection. Even though were a small group, i feel that way about everyone here. One of the many things I didnt list was 2010 will def also be the year for “Personality”. HUGE strides. Im actually doing my own reviews now so we can bond with customers too (general interest stuff) we will see how it goes :)
Please do send my best on to the King and to the whole family, was great seeing you guys again!
Happiness & Success,
- Mike
[Reply]
Amanda van der Gulik Reply:
January 28th, 2010 at 8:52 pm
:) Will do.
[Reply]
Hi Mike,
Thank you for the insight. This give lots of promise for companies with real products and real value to the consumer. Hopefully this actions will be a shining light for the industry.
As always your comments are of such great value. I now can understand the scope of what you said about the industry changing.
I will be in contact with Julie soon, once all the content and video are loaded to the site. Look forward to working with you. Really do.
I also hope that if there is a way to possibly help individuals like Robert Sasick.
Thanks Mike!
Joe
[Reply]
Mike Hill Reply:
January 28th, 2010 at 5:55 pm
awesome! yours is one I am personally looking forward to Joe. You will have to guide us through the waters of FDA allowable statements with your product, but we feel its a great one!
[Reply]
Joe Reply:
January 28th, 2010 at 7:41 pm
Thanks Mike, feel the same.
Yes, will have details on FDA stuff. We are working on that specifics. Will have banners, images, graphics, videos for marketers ready to go. Created site using JEM / JROX so site is affiliate ready…. but will work with your team on what you think is best.
Our partner / manufacture has been making this technology to help improve circulation and help with chronic pain for 10 years. They were one of first to get FDA approval/clearance on light therapy for medical usage… they know the ropes.
All the best,
Joe
[Reply]
Hey Mike,
Thanks for the review.
All the FTC really wants is corporate INTEGRITY in advertising.
DO WHAT IS RIGHT FOR THE CONSUMER.
Very few internet advertisers do any thing for free. One month “free trial” before we bill you must be specified clearly.
If you only have 200 copies and no more will be produced. Then and only then should one state, “limited quantity.”
“Black Hat” marketing should also be reigned in.
[Reply]
Mike Hill Reply:
January 28th, 2010 at 5:59 pm
agreed 100%. too many dont realize that the continuity is WHAT you want to sell, not hide! We have always had our best success when selling the customer on the rebill and NOT the product. “Black Hat” I cant speak of, I joined a forum to see what all the “hub ub” was about. Most of those guys are just trying to make a buck too and survive. Soon Im sure we will all see that the only way to truly build is with respect. Great comment, on limited quantity too… we talk about that a lot, if you’re gonna say it, make it real!
[Reply]
Ricky Reply:
January 28th, 2010 at 6:40 pm
Some people abuse the scarcity thing…. 200 mean 200 but not we have more but we need to rush you….
[Reply]
Mike Hill Reply:
January 28th, 2010 at 7:26 pm
totally. We advised our coaching clients to limit trials when done to 7 order per day per zip code per day and to place people on a waiting list. Also to NOT allow them to buy if they were not seriously dedicated (determined by survey). Unfortunately, we were too late and too many took the easiest way :(
[Reply]
So we enter a world of
Front end trojans
Trojan continuity as part of the initial purchase for maintenance
I think not requiring sample returns for a full refund including shipping is going to make many merchants think twice about international offers with shipping physical products. It isn’t clear however what constitutes a “sample offer” if what is sent to a trial user is the full product.
Might be a lot more physical info products locked with some kind of DRM with online components.
I thought this was interesting as well…
“and the consumer must acknowledge the terms of the sale prior to providing credit card information for completion of the sale”
Does that kill one-click upsells after taking payment info?
[Reply]
Mike Hill Reply:
January 28th, 2010 at 6:03 pm
i dont think anyone has banned 1 click upsells at all. The term “upsell” they are leaving a shaded area. To me it means back end upsell from Post CC submission, to others it means “front end attached offer”, and all to often those have ZERO to CRAP disclosure. :( I DO believe that 1 clicks will stay around, BUT the language has to be clear here again. I have seen people do 1 clicks and realize that they just need to get tricky with the words to get customers to agree WITHOUT ever mentioning the price (or burying it in the copy that no one reads). So I know people still doing them, i still see them, but that by no means is a guarantee they will live forever if people keep using them without 100% clear language on the upsell cost and terms. GREAT question Andy :)
[Reply]
Joey Reply:
January 28th, 2010 at 11:08 pm
My impression is that upsells are ok, as long as *you’re* the merchant selling the product and the customer acknowledges that he’s going to be charged extra for this additional product, and it’s stated on the customer’s checkout page/receipt/invoice.
So you have a product, then how hard is it going to be to find a complimentary product that would help the customer, can be offered at a lower price point than the main product, and can be shipped by you?
Using another companies upsell, and sending that other company your customer’s credit card information appears to be the big no-no! And how would that be PCI compliant anyway – when you think about it.
I’m not an expert, just a so-so affiliate who was coming out with a risk free trial, and got stopped in my tracks by the new regulations. Probably just as well, since it was copying the same formula that the acai guys were using. Now I’m being forced to do the right thing, and feel better about it . :-) (I should have bought your course when it was out… too late now)
[Reply]
Mike Hill Reply:
January 29th, 2010 at 1:58 pm
Joey, that takes a LOT to say and your a bigger person for it buddy. You should be VERY proud of your statement here! “Now I’m being forced to do the right thing, and feel better about it ” if only everyone would feel the same as you, then we would have a much better marketing society :) Great work Joey!!
Hey Mike,
I remember we talked about this coming down the pipeline on the way back to the airport after the cruise.
I really like the fact that your merchant has listed VERY SPECIFIC guidelines and do’s and don’ts, that way there’s no excuse to not abide by the rules.
I’m also glad to see the email specifically uses weight loss and money kits as examples as they (and teeth whitening) are the cause of all this.
But, as you said, we should be thankful as pretty soon there’ll be more “room” for legitimate business owners with a legitimate offer.
Anyway, thanks for your excellent post.
[Reply]
Mike Hill Reply:
January 28th, 2010 at 7:31 pm
you got it Jos! thank you so much, I wish we had more time to chat on the cruise too!! Tell Von? (sp) hi from me, he will be an amazing man!
[Reply]
Hi Mike,
I am glad to see this article from you. Hope it will help other people. I wish I could have read it before I got zapped. I just experienced this. “FREE”, but did not see the “we will sign you up automatically if you do not unsubscribe” bit. Was probably small print and I wear trifocals (lol). I found out after I started getting charged for 2 different subscriptions. I am a 68 year old widow, and I am trying to learn internet marketing and do not have the money to put out for the expensive stuff. I was able to get a refund, but also got a “nice b?tt chewing” for not reading carefully. Mike, keep up the good work. I enjoy your articles.
[Reply]
Mike Hill Reply:
January 28th, 2010 at 7:34 pm
Be sure you NEVER use a Debit Card online Helen!!! That is how most people get hurt :( If you use a real CC then you can always do a chargeback and dispute the fees. This year alone I had over 2k refunded to my card from testing offers. (we buy every offer we run to be sure that getting a refund is easy, if its no, we dont run it).. guess what,, that 2K was NOT easy to get back, so we never ran the tooth whitening offer they wanted (even though i do think at its core that its a great product, just poor execution and poor disclosure AND very poor customer service, which really is at the root of all of this! Thanks again Helen :)
[Reply]
The RockStar Life Style Coach! Reply:
January 29th, 2010 at 4:56 am
You can also use paypals plugin that lets you set up a one time use Mastercard card. I use this to purchase so that it can only be used once and I can pay using paypal.
[Reply]
Mike Hill Reply:
January 29th, 2010 at 2:04 pm
Great tip!!
[Reply]
The RockStar Life Style Coach! Reply:
January 30th, 2010 at 7:51 pm
Thanks Mike.
Helen Reply:
January 29th, 2010 at 9:41 pm
Hi Rockstar,
I always use my paypal account if that option is provided. Are you saying that paypal has another option that will let you use a MC # for a one time use to give to the seller, and then pay pal debits your account? I have not seen this on my paypal account.
Thanks for info.
Helen
[Reply]
The RockStar Life Style Coach! Reply:
January 30th, 2010 at 7:50 pm
Yes, that is correct. You can generate multiple virtual mastercards to use online that will deduct from your paypal account. Its a really cool plugin. It is under my account tools on the right side and says “paypal plugin”.
It’s all about being clear and 100% upfront. I seriously think it’s a great thing because the legit products and ethic business will stand out and win at the end …. it was time we review some shady practices out there….
[Reply]
Thanx Mike for your effort to informing everyone here.
I agree with most, only the Shipping cost , when REAL,
to refund , is little hard and will be in my eyes not a good thing.
But , I myself got “BS” CDs send with for a unreal
shipping Cost and got “teached” than about this technic…
But , so it looks , this Money Hunting Hype is gone to far, and I m little sick to read same crap in 20 emails a day, and so many try this “Tricks” on people who really desperately need help and teachings , guidance.
Got hard lesson to take in last few years myself and SOME has to come up and change , I agree here.
Hope only , that Honesty and loyal people , both sites, not paying for Money Hunting Gurus here.
Wish everyone Peace and happiness with great Health here !
Sylvia
PS: I think by now, the MLM Company I love being
with , is on the right new Way with there
unique Conditions for average People .
[Reply]
Mike Hill Reply:
January 28th, 2010 at 7:24 pm
yeah, im sure you’re not the first Sylvia who got a CD and didnt like the results. Lets hope that the “I make 183/hr with Google” are gone for good.
[Reply]
Thanks for keeping us updated with the video Mike ;-)
[Reply]
Hey mike, love your stuff!
One big problem I have with all this is..
“Avoid creating a ‘false sense of urgency’ for the consumer. Unless the consumer’s ability to order is genuinely taken away after a specified timeframe”
That doesnt have anything to do with consumers getting charged money they didnt intend to spend.
So, shouldn’t we be afraid by this? Isn’t this Visa trying to tell us how to run our businesses?
[Reply]
Mike Hill Reply:
January 29th, 2010 at 1:54 pm
Good point blake. I think the reason they are stepping in is because the FTC clearly tells us that we are NOT to use a false sense of ugency or anything false for that matter. and now they are doing the smart thing and having the ISO police it more. I think were all in agreement on the other one :) And yes, they ARE telling us how to run our business becuase SO MANY didnt do it right :(
[Reply]
Mike excellent post. What do you think this means for the bait & switch type models like the “Free Credit Report” guys who market the “Free” credit report but are really auto-enrolling the consumer into their monthly billable credit monitoring service.
Looking through the “new” rules, I see these guys fail the “new rules” test in so many ways – even with proper disclosure language, etc.
Thoughts?
Do you think this business model is dead?
[Reply]
Mike Hill Reply:
January 29th, 2010 at 1:56 pm
GREAT POINT! I DO think that your right. I think that FREE CREDIT REPORT.com does disclose though to the consumer, but do they do it clearly enough? I dont know, i havent reviewed thoroughly myself, but i assume so given the magnitude of their company, media buying, and likely legal teams. They will most likely NOT be going anywhere. But a great eye for detail Jamie!
[Reply]
Thanks for the heads up Mike, always appreciate you are out front on the issues in this business that matter most and are not afraid to honestly speak your mind to help others.
God Bless
[Reply]
Mike Hill Reply:
January 29th, 2010 at 1:56 pm
Thanks Diana :)
[Reply]
Hey Mike,
Great video! Thanks for taking the time to do it and give an update. Since I’ve moved to clickbank, I’ve been out of the loop in dealing with merchants directly so It’s good to know what’s going on.
Integrity is one of my most important values and to me, most of the changes that are going on right now certainly seem for the better as well as reasonable to abide by.
Keep the good content coming!
[Reply]
Mike Hill Reply:
January 29th, 2010 at 2:00 pm
Mike! Great to connect with you on the ship bro. You are a good guy with a great product and you can DEF help people. keep plugging on the CB route for now, CB will be HUGE this year. Just as huge as the networks as they start to “clean up there act”. Remember that the networks so far only knew a few things, so a LOT of supers will be pulling from CB now. Ive tested 20 offers or so the last month, the ClickBank ones out performed my network ones!!!!
[Reply]
Dear Mike,
Well, lots to consider in your video, and in the material from your merchant account people.
As someone that’s just getting started online it seems to be that ethics in marketing any goods or services, on line or off, ought to be second nature: bred in the bone, so to speak.
Maybe that’s my blue collar background kicking in, but shit, It ought to be hard wired into the whole marketing DNA of ANY business owner that wants to be taken seriously, and who’s in business for the long haul.
Fly by night, piss poor scam artists WILL be driven to the curb and kicked out.
How can this NOT be the case if the real gold is not in simple scam sales, but in the LTV (life time value) of the RELATION with the customer? To screw people over for a swift, short term dollar makes no sense and anyone—ANYONE—in to this kind of trading mindset is: (a) at some point going to tangle with the FTC and associated trading standards offices (as is the case in my native UK); (b) deserves to fold their tent when their customers walk; (c) needs to be somehow “tagged” by other marketers as someone to be avoided.
Bottom line here: treat your customers well and treat them with respect; give
all your customers at least 10x the value you’re charging for in follow ups, bonuses, and thank you’s; employ good old Louisiana “lagniappe” as much as possible, and remember two key things:
1. Catchy is Not a Selling Strategy™
This is something I’ve been touting on the Know-How Exchange over at
http://www.marketingprofs.com/ea/ and it’s been just one element that’s got me into the top 10 of their contributors in just nine months. No, “catchy” is out, and when it comes to relationships the key is significance and relevance—always has been.
2. Value, relevance, and showing you care will always trump hype, BS, and bait and switch trading.
OK. That’s my rant over with. Thanks for the information, and for the platform.
I hope to see you at UG6. I owe you, Jimmy Sweeney, and James Schramko a beer. Kind regards,—Gary B
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Mike Hill Reply:
January 29th, 2010 at 2:01 pm
As always Gary, you add incredible value and great insight to our small community :) thank you and cant wait to see ya at UG6 :)
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Mike, truly…thanks for all the great research you’re taking the fear out of media buying which can be a tricky game if you don’t know what you’re doing.
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“Does it make it harder for us? Yes”
I don’t think so, not if we’re already on the path doing the right thing. I think you meant it will take some work to tighten up our offers, but overall doesn’t make it harder.
Now ROI – that WILL be better for us, which is what matters :)
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Mike Hill Reply:
January 29th, 2010 at 2:03 pm
EXACTLY!!!!! Look at my reply to Mike Deiure buddy, ROI is going up for real offers :)
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I was always amazed people even buy some of the stuff that has now become banned under the ‘too good to be true’ category.
At least the regulators are stepping in to save consumers from a) shady operators b) consumer stupidity
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Mike Hill Reply:
January 29th, 2010 at 2:03 pm
DUDE! Been a while :) see ya at UG6?
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Hi Mike,
I am new to the Internet Marketing scene. I am 73 years young (Not OLD, age is in the mind.) and my income is also only Social Security and I have spent the last few months trying to learn how to swim before jumping in and I really appreciate your articles and help. But you said that “Just today someone asked me to promote a site that had a flog”. Please tell me what is a “flog”? As to Robert Sasick, there are some good people out there that will help him for free as to how to start out without spending hardly anything.
Thank you Mike and “God be with you all”.
Ron
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Mike Hill Reply:
January 29th, 2010 at 2:06 pm
Hey Ron, a “Flog” is a “Fake Blog”, they were used by marketers to trick consumers into thinking they were reading a real persons account of how they “achieved XX” with a product or product combo.. Only to find out that 1. the people are NOT real 2. the combo is a lie 3. the story was a lie 4. Both offer they promoted were trials that billed INSANE amounts to CC… i could go on, but im going to stop myself and say “that is in the past now” and i will leave it there. Thank you Ron!
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Hi Mike,
P.S. to my earlier reply. Now if we can just get the FTC to clean up the Fast Food Industry so that when you order some thing from their menu, that it looks like the picture of it!!!!!!!!!
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Mike Hill Reply:
January 29th, 2010 at 2:12 pm
Dont hold your breathe Ron :(
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Hi Mike,
Thank you so much for the incredible valuable content you provide here on your blog. I hear things here that not one of the “great” names, to whom I’ve listened before, ever spelled out so clearly. The email you reproduced here is soooo cool. It gives a very practical guidance on what to look for before choosing and promoting any offer or creating a landing page.
Well, there seems to be a lots of work to be done on existing websites to make them legally safe, uhh…
Those who just start out with you in front are fortunate, for they get a good sense of what kind of ethics they have to adopt and practical ideas on how to do anything before even buying any plr websites or building their own.
Moreover, I can hardly imagine to find any better model for building a blog…and branding yourself as a real expert that deserves the trust of your readers! :)
We all want to make money (or learn how to make money) and we want to do it the right way. Many of the big names I’ve heard from before do not really seem to care about that…”just take action as I show you and everything shall be fine”, they say, but I found this to be deeply deceptive.
No one should compromise a high sense of ethics for the sake of making money. The problem for newbies is that they first have to learn and find out themselves how good or bad any product or teaching they buy is indeed. Through this learning-curve they get slapped and have to pay for their ignorance by following “nice words” and “big promises”. Anyway, such hard experience can still be considered as an investment into one’s own development leaving us never at the point where it found us, can’t they?
Adapting these new guidelines as layed out in the email will probably clean up the entire market place, even on clickbank, as far too many of even the bestselling products there do not comply with even the minimal legal requirements and thus open doors to the FTC and their sanctions.
I suspect that the recent google bannings were directly related to violations of these best practices, where more or less “innocent” affiliates blindly promoted products or services that were not “clean”.
I purchased some package deals some time ago where the so-called worlds #1 superaffiliate gave his warmest recommendation for, promising they will set up complete sets of niche websites including sales letter, affiliate page, ebook and everything within clickbank or payzeno. Moreover, they even would recruit affiliates, generate traffic just everything for a one time fee of around $1k. Well, why not try, since it’s a hands off business.
Ha, but now, after a review of the latest developments I found out that it is highly risky to run such websites as they fail to comply with basic legal requirements such as disclaimers, terms, privacy, affiliate agreements and other disclosures and many of these sites just do deceptive advertising…If you own such a product and have affiliates promoting it you are liable for their mistakes, aren’t you?
The ignorant starter just jumps on a boat and hopes to learn from these “successful” guys how to make money online. But alas, never engage in a business by registering a domain on your own name and then put up a website on it that will certainly not pass the eagles eyes of the FTC! They (who sold the stuff) may not be charged primarily for what’s on your domain; it’s you, ignorant or not, who has to pay the penalty for any violations of laws as interpreted by the FTC.
Maybe some of your readers may be interested to learn more about the legal pages every website owner needs to have on his sites in order to be safe. Attorney Bob Silber is a well known legal adviser and a successful internet marketer himself providing top information on how to protect yourself. Well, his stuff is not cheap, but considering your business, it’s indispensable to watch out for his stuff.
I’ve got this tip from Jeff Johnson and it is NOT an affiliate link: http://www.websitelawforms.com
Check it out everybody out there, for it can be the eye-opener it was for me.
Well, your instructional content has contributed to become clearer on this subjects and I’m looking forward to learn more from you. Thanks again, Mike!
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Mike Hill Reply:
January 29th, 2010 at 2:11 pm
You said it best here buddy….
“No one should compromise a high sense of ethics for the sake of making money.”
While I cant speak to others (I rarely review any ones program, the only ones ive check out recently, i did like because they talked about REAL content and REAL methods), but one thing I can speak to is that you are SPOT ON with NEVER compromising who you are for the sake of money. Sure I have not made as much as many of the other guys who did, but when my little girl asks me, I am still proud to say, “I help people to help other people” and best yet, I mean it! thanks for the link. Even if it was an affiliate link, it would be welcome FYI. If you review something, you truly find it of value and are proud to put your name behind it, you should be compensated buddy. So next time please feel free to use an affiliate link, and that goes for everyone here ok? :)
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Great post Mike!
This change was a long time coming. What people are really freaking out about is the fact that the FTC came out with their new rules just a month ago and now this too. Like you said though, the pendulum has to swing back to the middle and it will within a few months. The merchants need to field everyones questions first before compromises are made to the new rules. Their will be some changes coming in the future.
Will businesses take a hit because of this? Sure they will. But the people who care about their customers will restructure their offers in an a way to make everyone happy and still put plenty of cash in their pockets each month.
As for me, my business isn’t based on continuity. So at this point, I don’t have to make any changes. I’ll still focus on keeping my customers satisfied each and every day like I’ve been doing for years. Plus. it makes work so much more enjoyable. I’d rather be on the phone with a happy customer than try to hide from an unhappy one. ;-)
Once again…. great video and post. Take Care….
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Mike Hill Reply:
January 29th, 2010 at 2:13 pm
Thank you sir, your right, focus on the customer always comes first. Be true to you, you can not expect to get 100% of people happy, but you can always do your best to be sure that you keep your head about you and thats all any of us can ask from another human being after all :)
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Hello Mike,
First, I appreciate you giving this “heads-up” information on the state of the direct response marketing industry.
I have not received this information from my merchant accounts yet, and I have almost all of them (American Express, Visa, MC, Discovery, etc.).
However, I’m not surprised as I try my best not to do anything with my customers that is deceitful, unfair, or plain outright dishonest. I always, always, always give them 100 percent of their money back if they’re dissatisfied with my products for any reason. Also, I let them keep the product and I give them another product of their choice for no cost – just to show that there are no hard feelings and to get them to trust me and buy from me again with no fear of loss.
Most legitimate companies today totally disregard the lifetime value of their customers. I’m glad that you don’t and that you understand the value that your customers bring to your business.
I hate it when I see trusted major corporations (I won’t mention any by name) hide terms in very hard to read small print and/or cover-up their terms in legalese that is not understood by the average individual.
All good people (and businesses) suffer for those that are corrupt!
And, I have personally witnessed the FTC itself do questionable things in the past. Yet, by law, they’re the governing agency.
Thus, no matter what happens, it is best to practice good business ethics, and reward your customers, who, in turn, will reward you with their continued patronage.
Thanks again Mike, best wishes for your business success, and Godspeed!
Rex Hudson, Owner and Chief Officer
Worldwide Information Supply Enterprises LLC
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Mike Hill Reply:
January 29th, 2010 at 2:17 pm
Thanks for the post Rex…
for the record “I always, always, always give them 100 percent of their money back if they’re dissatisfied with my products for any reason. Also, I let them keep the product and I give them another product of their choice for no cost – just to show that there are no hard feelings and to get them to trust me and buy from me again with no fear of loss.” is exactly how it should be! We talk about this a lot, giving coupons for other products, giving away digital products, and being sure no customer is ever made to feel “trapped”. In fact, we say frequently “the moment you start quoting terms, is the minute you lose!”, the customer is ALWAYS RIGHT, even when they are 100% in the wrong! :) No comment on the governing agencies.. lets just say every organization, no matter what its mission, may end up with a bad seed here and there :) Thankfully we learned long ago never to “throw the baby out with the bath water”. :) Godspeed to you Rex!
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HP Reply:
February 1st, 2010 at 10:01 pm
Hey Mike, what an excellent lesson!
In your reply to Rex comment (a very useful comment – thank you Rex, too!) you show your high sense of customer satisfaction which is something very rare in the world of marketing. You set up a standard that is worthy to keep.
Before you make any money with marketing, someone has to come into your door. Usually you have to spend time and money to get them coming to that door. Now, when they come, how do you treat them? Are you going to win the prospects trust? And if you do win her trust, how can you justify having gained the customer’s trust? – You gave a good example of treating the customer well and I believe that’s just the way you treat yourself, your family and your business. What is the reward of doing well? – being well.
I remember you mentioned in one of your reply’s that you purchase every product to learn how they deal with the customer when it comes to requests for refunds and that based on the quality of the customer support you receive you will make your decision whether to take or leave alone an offer…
We all have heard of the most powerful marketing strategy out there which is “word of mouth” to enlarge your circle of influence. Without satisfied customers, no business can succeed. Of course, to really have a 100% customer satisfaction rate would be perfect.
However, in the real world there are always some dissatisfied customers. So what about them? It was said that 1 dissatisfied customer can do more harm to one’s business than 10 new customers can benefit it and that you need at least 10 new customers to compensate for the loss of only 1 customer who was dissatisfied. Well, it depends on the circumstances but most it depends on how the customer was treated when he or she is dissatisfied. But turning that dissatisfaction into satisfaction should be our goal and do whatever we can do to meet it.
You just gave another helpful tip on how to make your business more successful by dealing well with your customers (overdeliver to them) especially when they have “unanswered questions” and the invaluable gain you get from it, if you do so, “just to show that there are no hard feelings and to get them to trust me and buy from me again with no fear of loss.”
Moreover, the joy of reversing dissatisfaction into satisfaction for only 1 customer may bring more rewards than you can gain of 10 regular customers, as these “reversals” will be more impressed and they will surely bless you with all kinds of blessings, including recommendations, referrals, etc. :)
After all, a good business should serve Life and not life the business. An entrepreneur needs not only food for the body but also for the soul and likewise does everybody else.
Thank you, Mike!
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Mike Hill Reply:
February 2nd, 2010 at 6:38 pm
Thanks HP, all great points! We used to talk about Rolls Royce in the MLM I used to be in… talk about how they never spent a dollar on advertising (now im not 100% sure if thats true or not, but still a damn good story that illustrates the power of word of mouth, which really breaks down to the power of passion! :) thank you HP!
Get Post Thanks Man.
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Mike Hill Reply:
January 29th, 2010 at 3:42 pm
Thanks bro :)
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In my opinion, everything geared towards the interest of the customers is a good thing.
Thanks for the article.
Franck
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Hey Mike,
Wow! Thanks Mike. Your response to my comment means a great deal, truly it does. May I use your response as a testimonial? (Hey, if you don’t ask don’t get, right!)
:)
—Gary B.
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Mike Hill Reply:
January 29th, 2010 at 7:44 pm
Yeah go for it! You do always bring great comments and value :)
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Mike, You’re AWESOME! Thank you so much! You’ve made my month. —Gary B.
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Please take me off your mailing list , Thank you, Jeanne Carlson
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Mike Hill Reply:
January 30th, 2010 at 12:57 am
I took you off Jeanne :) in the future, you can just click ‘unsubscribe’ at the bottom of the emails you get :) (lots of people dont ever read the emails they get or posts, I happen to read em, so made sure you were off myself :) Have a great night! – Mike
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Mike,
I am concerned.
I am also quite interested in your response so please don’t hold anything back.
In your CPA Tsunami course (SECTION 5) you mention something that gave me a kick in the pants a few months ago and the result was that I bought both your course and your ‘coaching’ program.
I am referring to a statement you made that was transcribed and printed as the first paragraph on page 118 of your Transcripts binder.
It is one thing to make such a bold statement and yet another to claim that “That’s my entire business”.
But what blows me away is that you state in that same paragraph that “for the next ten years, all I care about is running my value trojan business”
and today… you provide proof of what we have known for several weeks… the ISOs and credit card companies have pulled the rug out from under you.
Now, we are all in the same boat here.
And, I heard your talk on adapting. I heard your talk on laying low for a while… but what I’d really like to hear is a piece on where your business is headed given that the Value Trojan is now dead and…
based on the material in your course… it appears that you bet the farm on the Value Trojan tactic.
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Mike Hill Reply:
February 2nd, 2010 at 6:46 pm
Doctor,
Cant say that without thinking of that scene in “Spys like us” where the doctors are all in a round table… http://www.youtube.com/watch?v=AqBPOWpOg0o
Anyhow! :) Oh yeah, the VT is still alive and well! The only thing that changes is the way in which we promote it. We are creating a few different programs right now that all center around smaller micro continuity payments (value trojans). Now they wont be auto attached to anything, but thats ok. We dont need them to be in order to work, we just need the masses to convert and high volume. Will I be slam dunk successful at it,, time will tell :) but i can tell you one thing for sure, its far from dead.
Ill release this soon Doctor, obviously the changes that no one could have foreseen have modified things a little, but were not worried at all.
Thanks for the memory too, i LOVED that movie! :)
- Mike
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THE POWER OF POSITIVE THINKING IS NOTHING IS IMPOSSIBLE MIKE. LOVED YOUR VIDEO AND ARTICLE!!! KEEP UP THE EXCELLENT POSITIVE WORK. WORKING ON A FITNESS AND HEATH WEBSITE. THANKS FOR THE INPUT. YOURS SINCERELY MSPURPLETIGER
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Mike,
Thanks for your generosity and for promoting the “ethics” we all need to be aware of in our marketing efforts. As always you have shared important and timely information.
Herman
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Mike Hill Reply:
February 8th, 2010 at 8:04 pm
thanks Herman :)
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I had a lot of people in the past (about a month ago) that were sending me e-mails talking about they did not ( I think) want to be in my downline and tey wanted out f the Filler up club, I had no idea what the hell they were talking about and don’t remember joining myself, so whatever ties I have with the Filler Up Club I would like to cancel.
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Mike Hill Reply:
February 8th, 2010 at 10:15 pm
sorry george I have no idea what that is :( try googling it?
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Mike:
Several month ago, you had a free video that showed how to create a sales page for somebody selling an ebook and a physical book.
You didn’t call the book an ebook, you used different terminology. And the sales offers made it appear the best offer was for the buyer to purchase the physical product…which included an immediate download of an ebook.
Is that video still available somewhere/ Or the info you shared on creating the offer?
thanks
kathy lane
kathymurphylane@gmail.com
650-823-5998
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No. But now i will. Thanks for that.
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Pardon the late reply, I looked up your blog after a second listing to your interview with Steve Iser, in which you speak of evaluating the benefit of a product to the consumer, a concept rarely brought up in the myriad of cpa training programs that make trail offers sound like a win-win for everyone.
I would like to see a survey in the shady IM forums asking “How many people’ have you left feeling screwed”.
I have not held salesmen and their tactics in great regard, but find myself needing to earn more than mid-level tech work brings in, finding decent paying CPA offers that don’t burn the buyer is a complication that’s slowed my progress.
More IM industry self regulation, including product ethics rating publications, and more concise IM ethics language than hat colors would all make for a more attractive world for those committed to doing good.
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