The advent of the internet and online services has brought about different ways of profiting for businesses. It’s no longer as simple as customers buying from a store and people subscribing to their weekly newspapers. Instead, businesses thrive in digital marketing and online selling. What’s mostly changed is that a lot of services and products are no longer a one-time payment but rather in a subscription model. This means that you don’t really own the product once you pay for it, but rather you’re using it until it’s time to pay up again. This may seem annoying, but the subscription model also has advantages that make it a win-win for both the service providers and customers.
Not all people are ascribed to the notion, though. Not everyone is privy to coughing up money every month or year for something they’re not particularly using all the time. Businesses have their ways of circumventing this roadblock by letting the customers use the services and products first for free. Streaming services offer the first three months of premium watching for no cost. AWS Free Tier cloud services give the first 10 gigabytes of data within the first five months for free. These no-barrier entries to their services may look altruistic, and something to be taken advantage of, but the profits of these business companies tell otherwise.
Subscription traps and how to steer away from them
A subscription trap happens when you avail of a product or a service online for free or for a very low cost but later find that you have been subscribed to paying for something that eventually racks up without your knowledge. Although this might seem obvious to avoid, many people still for these kinds of traps. They typically come in the form of something you don’t have to pay attention to, but once the bill starts coming, you might find yourself hundreds or even thousands of dollars due.
- Read the fine print – Most people see the big header that says ‘free.’ Even the small details within a product cover page may not immediately reveal the subscription model that you’re agreeing with, and that brings issues later. Remember that terms and conditions box that you immediately tick with a check mark without reading the long, small, ambiguous text that comes with it? That’s the fine print that you need to be aware of. Learning about it and making sure that the service you’re availing of wouldn’t have any shocking bills that come with it.
- Be mindful of the expiration – Most promos have a set time. Free cloud-based services offer up to three months of free storage, while other subscription services have free access to the sites for some time. Should you really wish to avail of such services, be mindful and take note of their expiration dates. Cancel immediately before the due to make sure that you wouldn’t be charged. Set the alarm, a notification, or an event in your calendar beforehand so that you wouldn’t have to be constantly worried or, much worse, forget the due.
- Banking details – Never provide any bank details without first understanding the product or service from cover to cover. Although it may say free, some websites still ask for your card details for seamless, continuous billing after availing of the promo. This is the way for you to forget about such a service and have them keep charging your card without you noticing. Trusted websites and services are fine, but first-time access to a product should always be researched. Another thing to note is that you should always routinely check your bank and/or card statements. Every purchase will be reflected by the receipts of your official bank, so you can depend on that to research and regularly check which subscription service may be charging you. Should there be something that you’re not using, you can always contact your bank to stop getting charged for that specific service.
Subscription traps always start with something free or at a very low cost. These companies have proven and studied ways to make you pay money, but that doesn’t mean you will always be falling for them. Being knowledgeable and aware of these systems will already set you apart from the thousands of others who may be falling for the traps.