Micro-CONtinuity: Internet Continuity Scams Abusing a Good Idea
Now that forced and hidden continuity programs are getting such a bad reputation online, the latest fad is micro-continuity. Specifically, selling website visitors on a limited time program, such as a 3-month webinar series with monthly payments automatically pulled from the customer’s credit card each month.
The big selling point is that it provides customers with definite pricing. In the preceding example, a 3-month webinar series billed in 3 equal installments of $29.97 would result in gross profits of $89.91 (29.97 * 3).
And there’s absolutely nothing wrong with this if the terms are clearly disclosed. Indeed, this can be an attractive offer when one includes bonuses that exceed the value of the purchase price.
So what’s the catch?
The same scam artists who abused continuity to begin with apply the same techniques to con people using micro continuity. Here’s how it typically works.
The offer contains a micro-continuity program plus several valuable bonuses. However, hidden within the bonuses or in the fine print on the order page is a “free trial” of an ongoing continuity program. In addition to buying the micro-continuity, the customer unwittingly buys into another continuity program where billing starts when the free trial ends (usually in 14 or 30 days).
The key legal issue is full disclosure. If the average customer wouldn’t understand that there’s a second continuity program triggered with the purchase of the micro-continuity program, that’s a sign the sales copy and ordering process is deceptive.
Don’t ruin your reputation by pulling a stunt like this or promoting these types of scams as an affiliate. It is a question of when, not if, the Federal Trade Commission cracks down on this misconduct. You don’t want to be the target.
About the Author
With an advanced international law degree from Georgetown University and more than 15 years of real world legal experience, Attorney Mike Young is President of the Internet Ethics Council and creator of Website Legal Forms Generator software. He helps entrepreneurs protect and grow their businesses online.
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Hi Mike,
Much appreciated you put this post together – very timely.
I couldn’t agree more with what you’re saying. I personally feel that this business model is fantastic – IF DONE ETHICALLY.
It’s so vital to disclose properly EXACTLY what your future customers are getting.
I’d rather lose orders because they didn’t want to be charged regularly – that would turn into refunds and complaints any way.
I’d much rather have people sign up fully aware because they actually WANT what I am offering.
A stitch in time saves nine as they say ;o)
Thanks.
Hi Mike,
I disagree with you at some level. I don’t see why you should trump on someone else products, while you yourself are promoting a product advising them how to cover themselves.
I think you are just a mood killer. You don’t have to approve this comment, but please note that,
Thanks
Supreme,
I’m not attacking someone else’s products. I’m attacking a deceptive means of selling products. There is a difference.
Nothing wrong with making a honest dollar…or a million for that matter. There is something wrong with lying, telling half-truths, and engaging in deceptive business practices to profit at the expense of the buyer.
There’s too much junk being sold using win-lose tactics where the purchaser is unwittingly getting screwed.
If the continuity and microcontinuity programs being pitched were good for the purchaser, there would be no need to hide what’s actually being sold. Informed decisions create win-win deals.
A mood killer? Perhaps. I’d prefer to look at it as shining light on Internet marketing cockroaches.
Best wishes,
-Mike
P.S. Your comment was approved as-is. The only ones that get deleted or edited are comments that use foul language or constitute comment spam.
HelpfulGuy,
Thanks for the comment. Doing business ethically is the long-term strategy for succeeding online. Ethics makes business sense from a profit standpoint and as the right thing to do.
Best wishes,
-Mike
Ok, Mike
I now appreciate your point of view better, I see what you mean.
I was just concerned as many IM marketers identify a new product just about to be launched and they write a post related to the “products name” saying its a scam, but in essence they are stealing traffic for product launches and directing orgarnic traffic to their site. The other tactic is register a domain that looks like this http://www.IMbigname-truth.com, where “IMbigname” could be a product name or a guru who’s launching a product and thereafter do a PPC campaign like:
IMBigname a Scam?
Don’t Buy From IMbigname
Until You Read This Report!
the landing page is a fake survey that refers the user to some products other than what they were looking for. In such a website they even ask for donations for revealing the “truth?”. This is stealing traffic and would not buy from such a person either.
Hope you understand.
Thanks
Thanks Mike for the insight here. I have been watching the videos about this product, and was really considering it when I found your site.
I was thinking of a way to create addtional income and now I see what the plan is here.
I have gotten caught in these exact same things…Hypnotic marketing took 30.00 a month from me for 3 months before I caught on…and another big name guru did the same thing. I didn’t really benefit from these products…and when i went back to the sales page…I found the fine print where I would be charged monthly after my first month trial.
I was livid…I was out 90.00 and it was for something I didn’t even want!
So now I understand that I could not turn around and do that to somebody else…even if I thought I was providing great value.
Thanks again…I really appreciate it.
Karen
While there are definitely some bad micro-continuity systems out there, when used properly, they are actually a very good system. The consumer gets a trial at an affordable price, and the information provider gets valuable leads. As always, buyer beware. Read all of the fine print before you agree to ANYTHING online.
Karen,
Thanks for sharing your experience. In my view, if an Internet marketer intentionally hides part of what’s being sold, I won’t do business with him. Anyone who has asked me to cover their back by a bunch of legalese designed to protect a hidden continuity program has been told ‘no.’
Good Internet marketers fully disclose and let their products and services stand on their own merits.
Best wishes,
-Mike
Microcontinuity Reviews,
The key part of your response is “when used properly.” Many Internet marketers define this as “what I can get away with.” In contrast, “properly” should be defined as “what’s the right thing to do for my customer.”
Unfortunately, some big name marketers pike for their buddies for a fat affiliate commission and turn a blind eye to conduct that would have led to tar and feathers a couple centuries ago.
Best wishes,
-Mike
Great Point!!! I just bought something (for S&H) and unwillingly and unknowingly bought into some other program that I was supposed to cancel. I had to fight to get the charge removed…DECEPTIVE is the word to use Mike…Call a spade a spade BROTHER!!!
Thanks, Sean, for sharing your bad experience with Micro-CONtinuity. Although continuity can be used legitimately by marketers (Legitimate = Transparent + Informed Consent), some are looking to make a dishonest buck by hiding their programs.
Best wishes,
-Mike
Thanks for posting this Mike. I’ve found so many deceptive marketing and selling strategies lately, the problems seem to be getting worse. I’m glad that that there are still people out there ready to expose them.
The 2 worst industries I’ve found are the MMO (make money online) and Weight loss/Health. It’s frustrating.
Thanks again
Thanks, Steve, for your comment. Always money to be made by Internet scammers by appealing to greed and instant self-improvement that doesn’t involve effort.
Best wishes,
-Mike
Your Legal e-product has the following fine print excerpt in th e-Disclaimer section within the 7+ pages of legal stuff on your site. Looks like a conflict in online marketing behavior.
You say in the Disclaimers section — “Information in this website is general in nature, should not be construed to be formal legal advice or the formation of a lawyer/client relationship. Like all legal software packages, Website Legal Forms GeneratorTM is not a substitute for legal or other professional advice. Consult an attorney to address specific legal issues and your financial planner and certified public accountant to discuss specific financial or tax issues. ”
Found this nugget in a quite fine print hidden notice among much fine print regarding your legal forms product. This implies your product has no legal value. So just what is open and clear about purchasing this product? Continuity techniques or not, fine print is usually missed and therefore is usually deceptive.
Always ask, who benefits?
Intentional deception or not, how do we deal with this aspect of a product that purports to solve a legal problem?
Sincerely,
Curious Legal Web Prospect.
PS. Sounds like the same routine as you are describing with continuity programs only different. No value for real money, or did I miss the even finer print? How well would these legal forms stand in court? Have the claims been tested as advertised?
Legal products and websites are never intended to be a replacement for qualified legal or financial advice. I’ve always recommended, including in sales copy, that marketers pay for an Internet lawyer to draft customized legal documents if they can afford it. Unfortunately, many small entrepreneurs getting started online don’t have the financial means to pay for legal representation and I (and my peers) rarely work for free except for designated charities.
Under these circumstances, website legal templates provide some protection. No legal forms software (whether for websites, estate planning, or other areas of law) can ever make the claim to be a substitute for legal or professional advice. Those who have made such claims get sued for it.
There is nothing deceptive in the quote “fine print.” In fact, characterizing what I wrote as fine print is misleading. The fonts used for all disclaimers are at least as large as that used elsewhere in the same materials. You read the disclaimers so they clearly were not hidden. In fact, the disclaimer you quote is actually in a larger font than the text used on the home page of the website you obtained it from. The words were prominently disclosed in large text on a document clearly linked to and named as “Disclaimer.”
To compare clear disclaimers to hidden continuity programs is absurd.
As for your negative comments about my product and false accusation of “intentional deception,” you provide absolutely no evidence to support your claims other than misrepresenting disclaimers as being “fine print” and “hidden.” So hidden that you decided to come to this site and post about it.
As for real value for the money, a Who’s Who of Internet marketers use either my customized legal documents or the Website Legal Forms Generator software.
You’re not a “Curious Legal Web Prospect.” You’re either a competitor or just being a jerk because it makes you feel important. Anonymity must be psychic Viagra to you.
Hi
I’m a micro continuity student and i absolutly agree with you. Micro Continuity is a great system and i absolutely recommend it, but it should be used ethically. Scammers will think how much money can i make with this and will not care if the customer is being tricked, but marketers will use this system as a way of increasing value to their customers.
P.S: Guys stop trying to make money online and start really helping people and the will give the more money that you can handle..