Continuity Programs

(c) 2008 by Ian del Carmen

In this post, we are going to discuss continuity programs as they apply to internet marketing, membership sites and e-commerce. Basically, a continuity program is when a customer makes a commitment to purchase a series of products over time. It works out great for both the customer and the merchant, because the client can receive their products automatically without having to reorder them or go searching for where they got the first one. And the merchant can build a substantial list of repeat customers.

We have all participated in buying something in this manner. Health products, vitamins and beauty products normally are auto-shipped every month and the charges are automatically deducted from your bank or credit card. Food items that are gourmet or specialty can also work with a continuity program. Typically there is a lower introductory price or free trial period, then the customer gets billed once a month upon receiving their product(s). Of course, they can always cancel their subscription/membership and not continue to be billed every month.

There are a multitude of ways that you can offer your products. Open ended models are ones where the customer knows that they will be billed monthly and automatically receive their goods. Close ended models also work well, for example, a customer will receive one part of a product (like an encyclopedia) per month, and when all parts of the set have been delivered, the agreement and the billing ends.

Remember, selling pieces of something one at a time can turn out to be much more profitable in the end. Let’s say your product is $399. People might never be willing to shell out that much for your product, but if they can be automatically billed $39 every month or six weeks, they will most likely go for it if they like your offer!

Continuity program marketing is a win-win situation for both the seller and the buyer who want to stay loyal to the product/service. It is also an excellent way to build customers for life, who will potentially be with you month after month allowing you to build a substantial residual income.

Read more…