The internet is full of scams and deceptive practices centered around "recurring billing solutions". While technically not fraud, how many businesses make their livelihood by convincing consumers they are getting something free (or a one-time fee) but in reality charging the unsuspecting consumer every single month for the service? The best recent example are all the "stimulus checks" websites out there today.
I call this the FreeCreditReport.com business model. Credit reports are actually available for free, but not through this company. Their entire business model is built around convincing someone to sign up and then making it very difficult for them to cancel. This business a pure wealth transfer between the unsuspecting and the predatory - it creates zero value for society.
The current push among Web 2.0 companies to move from a "ad-supported" to a "paid-subscription" business model. I hope that as people make this transition, the companies take care to avoid this predatory model. In the jobs space, I see companies are increasingly charging job seekers monthly fees to access "exclusive jobs". I hope that these services are providing real value and not just taking advantage of people's insecurities about finding work right now.
The world doesn't need another FreeCreditReport.com. I hope entreprenuers will remember that as they design their businesses. Moreover, I hope the ad network and websites (like Google, Yahoo, Facebook) will work hard to make sure that they deceptive business are not allow to advertise on their grounds.
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Their entire business model is built around convincing someone to sign up and then making it very difficult for them to cancel.
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