Are/Were Third Party Membership Clubs a Cancer to Our Industry?
With constant pressure to squeeze out every dime of revenue from consumer callers and responders from Direct Response offers, has the industry practice of selling third party membership clubs possibly caused more long term harm than good to our industry?
Not all that long ago, the “clubs” were like a gold mine for our industry. The “clubs” were new to the consumer callers and conversion rates were much higher then. The financial benefits to these “negative option renewal” offers of “30 day trial memberships” were tremendous for product marketers and the call centers alike. However, over the years, consumers have come to view these products as valueless and have complained in great numbers about the hard selling tactics deployed by marketers. I believe that many got caught up in the frenzy of making new revenues in previously undiscovered territory and cared less about whether they were of any value to consumers. Did we once consider the possible long-term damaging effects to our industry of this practice? Read the rest of this entry »