Promoting offers that make a profit for nothing

MountainMan101

I've been using this site for a few years, and really appreciate the work on moneysaving advice (best bank accounts, how to find cheap car hire, etc) but I really think that when you post links to offers where you can make a profit with no intention of using the business, that you've crossed a line.

The recent one was the Blockbuster offer where you can join, make £11 and then quit. Promoting these kind of offers is doing no good for businesses. It's a totally different mentality to giving money saving advice - you're not telling people how to get cheap DVD hire - you're telling people who might not even want DVD hire how to make £11 for nothing.

I don't work in a business that does retail,but I imagine if you did you would be very upset with your genuine offers to encourage new customers being abused.

Where do you draw the line? I think you should have a frank discussion about this with your colleagues! In this case id you feel it acceptable because Blockbuster is a large company - would you have promoted the same thing if it was just a local video store?

kermitfrog

A good point, but isn't it up to the companies that use these promotional schemes to ensure that they're watertight?

In fact, they should probably thank MSE for exposing the weaknesses in their systems.

There is also the strong possibility that these companies have factored in non-genuine take-up of their offers, and accept these as a tolerable cost to bear for the genuine new customers that they do sign up. And who knows how many customers start off without altruistic motives but end up being persuaded to buy the product or service?

oakhouse13

I doubt the promotion would be offered if it was not going to make money.

Maybe not from renting DVDs, but perhaps from selling data which is often the real goldmine that companies are after.

See Keynoir also in the email - who reads the terms before handing over their data?

"On average our members spend between £400 and £600 per month"

http://partners.keynoir.com/

Terms & conditions:

We may also use your data, or permit selected third parties to use your data, to provide you with information about goods and services which may be of interest to you and we or they may contact you about these by email, SMS, post or telephone.

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may also be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff maybe engaged in, among other things, the fulfilment of your order, the processing of your payment details and the provision of support services. By submitting your personal data, you agree to this transfer, storing or processing. We will take all steps reasonably necessary to ensure that your data is treated securely and in accordance with this privacy policy.

More about these sorts of offers:

http://www.pcworld.com/article/203946/friends_dont_invite_friends_to_bogus_free_apple_ipad_events.html

savemoney

Companies must know schemes like this will be used by many people just to trial and get paid, they obviously hope some will stay

Personnel I think its no worse that some companies particularly insurance, utilities and telcoms of locking people into rolling contracts or hiding things in very small print

nomoneytoday

For each person "making" £11 I would wager another forgets to cancel a Direct Debit and so subscribes for many months..

abc

MountainMan101 wrote: »

I've been using this site for a few years, and really appreciate the work on moneysaving advice (best bank accounts, how to find cheap car hire, etc) but I really think that when you post links to offers where you can make a profit with no intention of using the business, that you've crossed a line.

The recent one was the Blockbuster offer where you can join, make £11 and then quit. Promoting these kind of offers is doing no good for businesses. It's a totally different mentality to giving money saving advice - you're not telling people how to get cheap DVD hire - you're telling people who might not even want DVD hire how to make £11 for nothing.

I don't work in a business that does retail,but I imagine if you did you would be very upset with your genuine offers to encourage new customers being abused.

Where do you draw the line? I think you should have a frank discussion about this with your colleagues! In this case id you feel it acceptable because Blockbuster is a large company - would you have promoted the same thing if it was just a local video store?

Speaking from personal experience a couple of years ago I signed up to Blockbuster just because of the cashback. Having taken advantage of the free trial I decided that I actually quite liked it and kept my subscription on for several months before I eventually cancelled.

Blockbuster therefore made a bit of money that they wouldn't have done otherwise as I never would have originally tried it without the cashback.

MountainMan101

I agree with why these companies run these schemes. But should MSE perhaps pass these on as a Free way to try xxxxxx rather than Join xxxxxx and make money.

I mean, you can get a free meal if you pretend to be homeless but you wouldn't expect Martin to go round suggesting that as money saving advice.

Googlewhacker

Any company that does this cash back thing will do this knowing what they are doing and it will most likely be in the budget for it.

soop2

I see OP's point, but I have to agree with everyone else.

Except in very rare cases, companiescare only about what they can get from us. Discounts are not offered on an altruistic basis, they are offered to get us to spend as much as possible.

So on the flip side, doing to them what they do (and is their sole purpose of doing) to us, does not offend my morals.

However, I quite often see people on the forums being incredibly greedy, and I've seen it backfire. So if you think these companies are being taken advantage of, think again, because sometimes that's what they want you to think (although not in this case perhaps).

Oh, and if you look at the logo, one of MSE's modus operandi is "consumer revenge".