Schewanick Computer Services

Be careful who you recommend. Watch for hidden loopholes in their return policies and guarantees.
Online Marketing Guru or Scam Artist? It Pays To Be Careful Who You Recommend
By Kate Kelly Copyright 2003 Permission to Reproduce Granted
There are several ways authors of e-books can drum up a little advertising for their products. One of those ways is to send other people; particularly people with a noticeable online affiliate marketing presence, a "free courtesy copy" of their book for review. A lot of people do this simply because, once the book is written, it costs the author absolutely nothing in terms of advertising expense to give away an online PDF copy of his product. Along with the free courtesy copy of the e-book or manual, the author also requests, (and it's quite reasonable to do so), that the recipient write a testimonial if he or she likes the book. If the testimonial is a favorable one, the delighted author, in an effort to show his undying appreciation and gratitude, then offers the recipient of the book a free membership in his affiliate program, complete of course, with an affiliate link to the authors sales site.
It would be unusual, I suspect, for an affiliate marketer not to take him up on such a generous offer. After all, it's a simple task to write a few paragraphs recommending a product, add an affiliate link, and upload it to an existing affiliate marketing website. For the most part, both parties consider this practice a "win/win situation." The affiliate marketer receives a free copy of the book or product, writes a favorable testimonial, and ends up with another affiliate link for his efforts; all of which didn't cost him a dime, and could result in still another affiliate income source. There's nothing wrong with that. Right? Ultimately, the author of the e-book happily adds another affiliate marketer to his online sales force, knowing that this should eventually result in higher sales of his product. Both parties win in this situation. But does the customer, the person who eventually ends up actually purchasing the recommended product at retail price, really win in a scenario like this? No, not always.
On the surface, there appears to be nothing wrong with the practice of giving a few e-books away; and it's a fairly common way of promoting a product offered to online consumers. If the actual product has a price tag of under $50, chances are the product is worth every penny of its price, and no one, not even the end consumer, really loses out in a deal like this, because most authors, at the very least, will offer a 30 day, no strings attached guarantee with their product.
This scenario, however, often results in a decidedly different outcome when the end product that's being offered to the online consumer comes with a high-end price tag. For instance, there are several books or manuals being offered that have a price tag somewhere between $100 and $500. Most consumers, particularly those that are looking for an "Earn a Great Living Working at Home" income opportunity, naturally surf the web looking for reviews of products. That person is likely to be "an online marketing hopeful" and wants to be sure the expensive product they are considering is worth the money that's being asked for it. So what does that potential customer do? Typically, they will go to their favorite search engine, type in the name of the author, and begin reading the online reviews of his product. Since the potential end consumer is most likely a "newbie" to the online marketing scene, it's likely they are not aware yet that savvy online marketers know how to produce keywords that will give them high positioning with the search engines, thereby making the author seem remarkably popular when someone does a search. In fact, if the consumer is really new to the scene, they may not even be aware of the fact that the review they are reading that recommends the product has actually been written by an affiliate. The unsuspecting customer, at this point, may not even realize the affiliate will eventually get paid a commission, providing the customer decides to click on the link that will take him to the products' official sales site and eventually decides to make a purchase.
In truth, the customer actually wants to believe he or she is reading an unbiased and honest review. But is this really the case? The fact is, if the product review was written by an affiliate who received a high-end product for free, they may have done little more than simply skim the book or manual, choosing to read only the parts that actually interests them, or provides them with new information. If the affiliate marketer acquired the book at no cost in the first place, they are likely to simply skip over the chapters that cover all the boring topics they don't want to waste their time reading about. The affiliate will then likely spend a few minutes writing a quick review, upload the review (with the affiliate link, of course) to one of his or her marketing sites, and probably never actually gives it another thought. The unsuspecting customer will read that review, never dreaming for a moment that someone who didn't actually pay for the product in the first place, wrote the product recommendation and review.
In the case of products with a substantial price tag, since the affiliate has not actually spent any of his or her hard earned money on the product, he simply cannot write an honest review. Frankly, he is not emotionally invested enough in the product to ask himself, "Is this product really worth the price I paid for it?" The fact is, he paid nothing for a high-end product, and as everybody reading this already knows, "free" is always a very good price. Furthermore, since he received a downloadable version of the e-book, rather than the hard copy version the eventual customer may actually receive, the book isn't even taking up space on a bookshelf; it's left out of sight and out of mind somewhere on his hard drive. Frankly, if his computer is running out of memory, he might simply chose to delete the e-book, while still "recommending" it to those who visit one of his web sites. Since he didn't have to pay for it in the first place, it's really no skin off his back, is it?
Quite frankly, the person recommending the product online may not have even bothered to read the product guarantee or return policy. Many times the guarantee and return policy is not even included in the main body of the e-book version; it's something the end customer likely receives in a separate "read me first" section that is sent out only to those who make an actual purchase.
To illustrate, let's all take a close look at the return policy of a high-end product that's available today on the web. The author has been recommended often as an exceptional "online marketing guru" leading the customer to believe that the $299 price tag of the material is well worth the purchase price. In this case, 50% of the purchase price is for a "mentoring service". Furthermore, in this particular instance, the 598 page manual, actually only provides the unsuspecting customer with a mere 155 pages dealing with Internet marketing strategies. The remainder of the manual, unfortunately, primarily deals with not only mail order; pages 353-550, (that's 197 pages folks; fully one third of the book,) is about MLM marketing. He has also included eight CDs, the majority of which deal with either Direct Marketing (mail order) or the "Network Marketing" principals employed by most people in MLM programs.
Statistically, over 50% of his customer base is likely to be mid-income to low-income women, all hoping to earn a living at home. It's likely that many of his customers have already lost a great deal of money in one multi-marketing program or another. Furthermore, it's quite conceivable that most of them have absolutely no intention of trying multi level marketing again. To add insult to injury, the author does not fail to include an MLM brochure for the nutritional supplements he is pushing. I suspect most people, when they receive his manual in the mail, are absolutely infuriated, feel scammed, and immediately make the decision to return the product.
Now, let's look at his guarantee and return policy. I think most of you will find this a real eye-opener! I have added my own emphasis to certain points, however I clearly note that fact when it occurs.
GUARANTEE
"I am so confident that you will love my program that I am willing to give you a 365-day money back guarantee (that's right, ONE YEAR) on your materials. Read the book, and listen to the CD's. If you don't like them, email us for an RMA number. You can return your materials and we'll give you a refund for the cost of your materials (minus shipping and handling).
How do I know you read the book and listened to the CDs? Simple. I have you take a short test. The test is very easy for anybody that went through the material. (My emphasis.) This ensures that people who are serious are going to order. I really don't care to sell to people who are intent on getting our materials, printing them and calling our office for a refund without going through anything. Read it and return it if you aren't delighted, but you are going to have to read it. (My emphasis.)
If you order one of our packages and cancel before your order was shipped (his emphasis, and he ships immediately upon order) we will give you a full refund for the value of your purchase, less shipping and handling. If we've sent you anything, including the PDF file, you must follow our normal return policy to obtain a refund. (My emphasis. His PDF file is delivered by auto-responder immediately after purchase.)
Get our program and check it out for 30 days. Decide if it's right for you. If you would like a refund, send us a request within 30 days of purchase for an RMA number. We will issue you a test to ensure that you have read through and listened to our materials fully. (My emphasis) Completing the test will entitle you to a refund of the cost of your materials (less shipping and handling, excluding mentoring. (My emphasis. Notice it excludes mentoring, no pro-rate or anything, and mentoring is supposedly worth 50% of the purchase price!) For the period of 31-365 days from the date of purchase, we ask that you also provide proof (my emphasis) of the steps you have taken to implement the D.E.S.K. principals in your business plan."
In other words, the disappointed and angry customer who bought the product thinking they were going to get a full educational manual about marketing online, is forced to read a 598 page manual, three quarters of which actually has nothing to do with internet marketing what-so-ever. Then, in order to receive a refund, they are also required to listen to eight gruelingly tedious CDs about the same subject matter, all within 30 days of the purchase, or the consumer does not stand a rat's chance in you know where of getting their money back. A careful review of his return policies shows the reader that a full 50% of the purchase price, which is for mentoring services, is kaput from the get go, whether the mentoring service was used or not. Furthermore after 30 days, the author in question clearly states that no one will get their money back unless they can "prove" to the author that they have "implemented" his program to the author's sole satisfaction.
Obviously, the only person this return policy protects is the author. It's his customers, most of whom are probably working a full time jobs and couldn't possibly meet the return policy requirements within 30 days if they tried, (they simply don't have time), who are left holding the bag! The manual they receive looks suspiciously like the reprint of a tired old book about mail order that stopped selling well long ago, accompanied by an MLM primer that's probably been circulating the network-marketing field for years. There are only two chapters, thrown in for good measure, about online marketing strategies.
To make matters even worse, any person in the authors' affiliate program who received "a free courtesy copy" of the manual to download, didn't get to see the full version of the return policy which is only contained in the additional "read me first" pages that are sent out only to paying customers. Many of the affiliates recommending this product online have absolutely no idea that nearly every buying customer they send to this author, is going to end up feeling scammed!
What is the moral of this story? Absolutely no affiliate marketing agent should ever "recommend" a product over $50, particularly books and training manuals, unless they have made the purchase themselves as a typical buying customer! Each and every one of you owes it to yourselves and your customers to make sure you receive the product in question in precisely the same state and form that the average online consumer does. You must go over all return policies and guarantees with a fine toothed comb to determine if the producer of the product possesses the kind of marketing scruples you wish to represent. Remember, that at all times, it's the end product that the buying customer actually receives, which ultimately reflects upon your own business credibility on the World Wide Web.
I know of several motivated and very scrupulous affiliate marketers who received a "free courtesy copy" of the downloadable version of this manual, and they are all "recommending" the product online. Most of them have absolutely no idea they are sending their customers to a rip off artist, who by the way, religiously pays his annual dues to the Better Internet Bureau, and has their respected emblem prominently displayed at his website!.
Do you think this guarantee policy reflects honest business principals? Some of you reading this are actually recommending the author in question. Ultimately, it's your credibility as a businessperson that you must carefully protect. For those of you that may have actually purchased the product in question, and are quite unhappy about it, I do not believe the author has a legal leg to stand on. Why? Well, in truth, he made a rather serious typing error, and it's all too apparent on the first page of his manual. It reads "Copyright 2302"! (Yes, I was amused.)
If, in your search for reliable products to recommend, you find that you have purchased a product with a similar return policy, you do have some recourse for getting your money back. First, when you receive a product you are displeased with, you must immediately contact the customer service department of the bank that issued the credit/debit card that you used when you bought the product online. Briefly explain the problem to the bank official, and they will send you a "customer dispute" form to fill out. Some banks will even immediately credit your account for the purchase amount, once they understand the situation. Once the bank receives the form you filled out, they will contact the vendor themselves. Needless to say most scam artists who attempt to bully their customers with questionable return policies and guarantees, think twice about it when speaking to a bank official. All banks that support the Visa/Mastercharge platform are quite capable of contacting the company that issued the vendor his Merchant Account. Should the vendor refuse to satisfy the customer's complaint, the bank and the company that issued his merchant account have the legal right to remove the vendors account privileges, which means he will no longer be able to directly accept credit cards.
Each and every affiliate marketer has been granted an excellent opportunity to earn a good living. However, it is your responsibility as an online businessperson to make sure you have thoroughly reviewed the entire guarantee and return policy of each product you recommend to the buying public. If your customers are to receive a hard copy of the book or manual in question, you need to realize that the return policy and guarantee your customers receive may not be presented to you in the downloadable PDF version of the product, particularly if you have received a free "courtesy copy" in e-book format. Please, always remember that the return and guarantee policies of disreputable vendors, can and do hurt your own business credibility.
Once burned, most customers will remember that your website was the place where they found the link to the product in the first place. Once burned, most customers will never return to your web page again.
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