Promoting Recurring Billing Products

January 15th, 2010

Its a good idea to promote recurring billing products because as compared to a one time commission, you get to earn a few times over the long run. When promoting recurring billing items, its important to take note of a few things.

1. Recurring Billing Items That Are Hidden Cost.

Some items have their cost hidden in the terms and conditions. These items can be quite profitable, however, they need to be within the VISA guidelines. Its easy to get in trouble when there are enough complaints against the item. Right now, the industry is in a midst of change regarding this sort of billing, so do be careful if you intend to promote these items. Lawyers can contact the networks that you're working with and they may contact you to take down your site. Some marketers that promote such items do inform their customers to study the terms and conditions before they purchase. Such responsible marketing is good for the industry.

2. Informed Recurring Billing

Informed recurring billing keeps the customer informed before they purchase. This allows the customer to know what they are in for. It could be fresh content updated every monthly, or a health product shipped monthly. You can normally expect a customer to stay with the purchase for at least 3 months.

3. Multi-Tiered Billing

Multi tiered billing is good as a long term money maker. In all forms of making money online, we need to always include one way of making money in the long term, and this is known as residual income. This can be done offline as well as online. The main thing about this sort of offline income is that it can be difficult to try to duplicate. We can generate leads for an offline business, but unless you are able to close prospects face to face, it can be hard to sustain this business model. For those that can close their prospects face to face and train their downlines to do so, this can be a great money maker. Multi-Tiered Billing for online business is the way to go, and i do recommend it. Its a quiet passive income model and you'll find that the returns can be quite rewarding.

2 Responses to “Promoting Recurring Billing Products”

  1. Tim Van Loan Says:

    Hello Sherman,

    Great list of items to consider when deploying subscription billing. It's a great way to increase revenue, but similar to any business model, you do need to consider the impact on your existing- and future- business.

    Along the lines of item 1, its important to prevent chargebacks (when customers cancel charges through their credit card companies). When this happens, you get hit with a charge, and after enough of these chargebacks, you may even get your merchant account suspended. The best way to solve this is to provide your customers with an easy way to contact you regarding billing and subscription issues. We discuss some strategies on how to do this on our blog at:
    http://blog.recurly.com/2009/11/preventing-chargebacks/

    The tips you mention about using a multi-tiered solution also help. We've found that by offering customers multiple pricing options and levels, you enable a much greater amount of revenue (even if its not completely made up of the most expensive/"premium" services). Users like choice, and tiered business models offer this.

    Thanks again for the great post!

  2. Clement Says:

    Hey Sherman, recently Visa and Mastercard was frustrated with all the chargebacks. FTC launched a few rules and thus negative options for recurring billing is not possible now.

    Multi tiered billing seem to be the best option for recurring internet marketing billing.

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