If you’ve ever gotten a shut off notice, you know.
It’s not one of the best messages you’ve ever received.
This week has been one of the most controversial weeks of upheaval to hit business owners online and off, all over the world.
If you haven’t heard, the short version is that Mastercard and Visa have completely changed the rules of processing sales and this will impact you as a business owner or consumer.
Heck, with a shut off notice from a phone company or electric bill or something, at least they give you time to adjust and get it right…
Not with this shut off notice with Mastercard and Visa.
There had been rumors swirling for months that changes were coming, however there were no updates made available officially to the public.
Even the processors who are brokering the accounts for MC/Visa are not fully informed of the practices that a business should follow.
I know of at least 10 people who had conversations with their merchant processor in the morning on Thursday and were assured that everything was fine with their account and a few hours later their account is turned off for business.
How could this happen? Why?
Because things change.
The one constant thing you and I can count on is change.
It’s unfortunate. It’s tough. It isn’t fair.
The great one’s know that and get through, over, and around it…
The market jigs… they jag.
They are flexible…
How about you?
Can you adjust on the fly? Do you have thick skin to handle the changes that get thrown your way…
Because more than anything else, it’s that mindset that separates you from the pack– one way or another… succcess or failure.
Some of the biggest businesses in multiple industries from health products, skin care, fitness, self-help, nutrition,
information marketing and more have been impacted by these changes.
The gist is that the practice of doing a trial offer with continuity is over as we ‘knew it’.
I remember years ago when consumers demanded: “Can I try it before I buy it?”
And the try it you like it, trial offer approach was born…
The credit card companies and regulators have stepped in and put this to a halt.
There are always 2 sides to every coin – and I would even get you to think about a third side too…
Of course there are good reasons they’ve made these adjustments.
On the other hand, I’m sure we can debate there are bad one’s too.
That’s not the point of this conversation.
What does matter is what the changes mean for you both as a consumer and business owner…
If you offer or were planning to offer a trial with a monthly billing, you’re going to want to rethink your approach…
As of now, Mastercard and Visa do not want any trial offers.
They do not want trial offers with continuity.
They do not want unlimited monthly billing without verified consent.
They do not want businesses using the term ‘Free’ even if the offer is ‘free plus shipping’.
Everyone I know that had an account that offered a free trial of a ‘free plus shipping’ offer of any kind, with any product was shut down.
Good offers didn’t matter.
Good practices didn’t matter.
What mattered was that if you offered any type of free-trial with monthly continuity, a few days ago you were in business, and today you’re not able to process that order…
It will continue to shakeout over the next couple weeks, however there a few important lessons we can all learn from this:
Your greatest asset is your list.
With all of this happening, I know many marketers with the list/database that will still thrive despite being shut down because they will create additional value with other products and services that complement what they do.
Don’t put all your eggs in one ‘product’ basket.
If you find a product category working well, treat it like an oil well, however keep drilling for a new one.
Diversify your models/offers.
Offering different types of offerings from low introdutory products to mid-range combinations.
For example, if someone hit an oil well with a free+shipping product with Teeth Whitening and this was the only model they built, today, that company is probably out of business.
However if they had teeth whitening offers that were also a straight purchase, now they would have something to fall back on or rely on.
I’ve also discovered there are niches with different types of offers too. I think the music business figured this out years ago with singles and full records or CD’s.
There is some overlap, however you get an entirely different customer for the same product, just based on how it’s packaged or offered.
For example, the teeth whitening product I described to you. Let’s say a company offered to get it with the trial and then also had it available as a straight purchase option would get 2 different categories of customers even though it’s the same
product.
Plan an approach for both.
Build relationships with other competitors to create synergies and value.
Also – I’ve recommended to clients for years that you treat a category of business as an isolated business in itself and even set it up that way from the start after it’s proven itself.
For years, I’ve promoted and championed a philosophy of Stephen Covey: “Begin with the end in mind”.
As it relates to business, set it up so you can sell it off if you chose too. This creates stability and value in your business – even if never choose to sell it off.
When I started our Company years ago, I had products in our product line that ultimately became their own company for strategic purposes and later on were sold off.
Some of those products you start with grow and others fizzle, however it only takes a couple winners to create success.
And, here’s the last thing as well.
Everyone I know of that has gotten a SHUT OFF NOTICE for their trial offers is looking for a solution and not focusing on the problem.
How would you react with that SHUT OFF NOTICE?
Would the sky be falling and you’d be doomed? Or would you act like the most successful business people do…
Finding opportunity in a problem or challenge?
I know some people would likely cash it in, saying Ok, that’s it, I’m done.
It would be the excuse to quit…
On the other hand…
Winners win, because they find the opportunity in the biggest problems.
One of my mentors taught me years ago…
“Find the biggest problems out there and create a solution, and you will create wealth…”
The most successful winners in business (and life) are flexible and find the opportunity where there are problems.
Even if you weren’t directly impacted with a SHUT OFF NOTICE, do a check up from the neck up and evaluate your business and mindset.
We’re all impacted by these changes in good ways and bad ways…
It’s not whether you get knocked down in life,
it’s whether you stay down.
Get up… get moving… go out there and do something big…
You’re destined for greatness.
Go for it!
Dan
PS – I’m looking for strategic business partners this year to personally work with both online and off with our Strategic Business Services Program.
My ideal strategic partner with a business is someone already generating at least $100,000 or more.
Someone who is not generating at least 100k should work through our mentoring
services or home study courses and not a good fit for our Strategic Business Services Program.
However if you do know of a business owner or model generating at least $10,000 per month
now or $100k + per year minimally and looking to expand to 7-figures, (or at 7-figures looking to grow)
then I’m looking for select projects to help build and grow or even purchase and partner in.
You can submit the ideas/proposals through our office by submitting it by email at
mentoring @ achampionvision.com to start our review process.
9. March 2010
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