Here comes some marketing news that may not exactly be bombshell caliber information but I can guarantee that many newbie to advanced level marketers and bussiness people do not even know what is going on when they sign up for that freebie that the Goo Roo of the month is offering.
I am talking about the classic offer where the star marketer of the month has a free (not really) CD, DVD, or newsletter whether it be print or pdf and all you have to pay is the postage, or so you think…
Here is where the loss leader comes in.
The classic definition is to offer a freebie to the masses in order to get something much more valuable – Your Name, Adress, and Credit Card or PayPal information for that postage and handling, right? Not Exactly…because what you did not realize or even read (the fine print) was that after 30 days the goo roo shmoo roo charges your account for a re-occuring monthly payment to their monthly membership club it’s called forced continuity and while it makes them lots of dollars it’s also a bad business practice.
I not so affectionately dub these people LOST LEADERS!
Monthly memberships are called continuity products, programs, or services and the weeler dealers make big bucks on the inattention of the average Joe and Jane everyday. It ticks me off and I want you to know about it, as a matter of fact, I just went through a fiasco with a marketer who I respect yet think he has been alienated from his marketing manager and sales program.
I e-mailed the company through their contact information and then called their number, guess what? I got an answering machine and no reply to my cancellation request. Finally I had to go through my payment provider to conduct a chargeback on that company, what a pain in the brain.
True Marketers, the ones I refer to as Leaders keep their marketing above board and out in front of you at all times, they take the time to explain what you are investing in and why, so take my advice and take the time to read the fine print up front because it will save you time and money in the long run.
Freebies are a dime a dollar now a days, every run of the mill marketer in a minute wants to give you their information in the hopes that they can upsell you on their high dollar, whiz bang product or service that will make you a millionaire.
Buyer be ware don’t buy wares disguised as preatty prose bobbles that is really nothing but disguised ad-copy, in other words, sales letters are becoming more diverse and direct marketers have taken their trade online. Now the mainstream market has picked up on the skill and its a free for all.
The Marketing Professional declares, buyer beware, follow a Leader not a lost leader and dont fall for the loss leader either.
Leave me a comment about your experiences with loss leaders and how you feel about tacky marketing tactics – thanks in advance!
Always to Your Success,
Mark Edward Brown
I proclaim that I will recomend products or services that I and other militant marketers use as long as they are above board and produce results. Yes, this is a form of a disclaimer but I will not stoop to the level of lost leader just to make a buck!