The BizProfits Blog

Risk VS Reward in Free Trial Offers

Written by: Kate Almog Promotion Tips

Free Trial is a type of offer when a user orders a product or service to test it for free during the 15 days of free trial period (only shipping expenses must be covered). In 15 days after creating an order, the consumer is automatically charged for buying this product on a regular basis, unless cancelling that.

Free Trial offers are performing as the most efficient ones for the whole Health & Beauty industry. However, they could be a bit tricky. Go on reading, to learn why. First, let us have a look at the Free Trial model on the scheme below.

How does free trial work

WHAT HAPPENS ON THE CUSTOMER SIDE?

  1. While creating a Free Trial order a consumer provides payment details, shipping, and other personal information in order to cover the shipping fee for the free product.
  2. A customer has 15 days of the Trial Period to cancel аn order if it’s not suitable enough.
  3. If a customer doesn’t cancel an order, the charge for the trial product is billed automatically.
  4. In 45 days after the order has been confirmed, the rebill occurs and the customer receives another package.
  5. The rebill repeats every 30 days until the order is cancelled via a phone call.

Now you understand the basics. To go on further, let’s figure out the key definitions.

Approval rate is how many valid customers (with correct home address & credit card number) there are among users who created an order with invalid credentials. Rebill rate is when a customer doesn’t cancel their subscription and the order is renewed automatically.

A high rebill rate is of the top importance, affecting all the players in the business from an advertiser and an affiliate to the whole advertising network. If consumers do not rebill, an advertiser loses both the cost of production and the payout to the affiliate. So if an affiliate delivers traffic with a low rebill rate, their partnership with an advertiser will end quite soon. That’s exactly why playing the game in Free Trial business is often considered to be risky.

HOW TO MAKE REBILLS “FLOURISH”?

If both affiliates and advertisers work with the product diligently from each side, the extremely high rebill rates occur, making Free Trial offers a perfect option for a long-term partnership. The quality of traffic in Free Trial offers is 80% of success, and can either develop or ruin your business. Two main metrics of the Free Trial traffic quality are the rebill rates and the chargebacks.

On average, the rebill rate* appears to be 15% lower than the approval rate. Rebills are closely watched on both sides of a network and an advertiser in order to decrease the gap between the approval and rebill rate.

What affects a rebill rate on the affiliate side?

  • a traffic source
  • a banner / other creative
  • a pre-lander

What affects a rebill rate on the advertiser side?

  • optimized landing page
  • product quality
  • appealing packaging design
  • dedicated customer support to prevent cancellations
  • diligent work with merchant payment processors

Actually, a lot depends on the customer support at the advertiser’s side. It seriously affects the rebill rates: highly professional support prevents customers from canceling the subscription for the products. Moreover, a satisfied customer is more likely to be converted into the upsell.

Another important thing is packaging & shipping. Providing pleasant experience results in retaining customers. Using a unique and appealing packaging makes the product stand out from the competitors. The first impression of a product is crucially important here because no one wants to receive the poorly packed product, even if it works perfectly.

HOW TO DEAL WITH THE CHARGEBACKS?

Unfortunately, beating low rebill rates is not enough for the success. There is one more complicated task: preventing customers from requesting chargebacks.  Advertisers have a great influence on the success of the product or service they provide. They are fully responsible for both the product quality and the service. A chargeback happens when a user is billed for a product that they don’t really want. It could be caused by irrelevant traffic from the affiliate side.

Another reason for the chargebacks to occur is improper support and cancellation procedures set by the advertiser. Advertisers should make the product description and its promo materials absolutely clear and keep their promises about the product. There could be a temptation to exaggerate the product features, but it could be dangerous enough. It will probably increase the conversion rate but it will also create an enormous decrease in the rebill rate which plays a major role in this game. So it’s both advertiser’s and affiliate’s responsibility to manage chargebacks and rebills.

WHY WORK THROUGH AN AD NETWORK?

For affiliates: Not only is working through the affiliate networks more secure for the affiliate but also it’s easier: you could simply define high-converting offers.

For advertisers: Being a middleman in an advertiser-affiliate relationship, an affiliate network ensures the top quality of the provided traffic by monitoring rebill rates, conversions and more.

Here are some examples of the top-performing in-house offers at BizProfits Network:

The success of both the affiliate and the advertiser in the industry strongly depends on the relevant and interested buyers. So number 1 priority for the affiliates is providing top-quality traffic with high rebill rates and reasonable prices. BizProfits is one the most successful affiliate networks for Health&Beauty vertical, which monitors rebills effectively and maintains higher rates. If you’re interested in working with us, feel free to use the contacts below.

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Kate Almog

Affiliate Manager

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