Make Money Online: American Express Strategy

by Galyna on September 12, 2011

In this article I will talk about another way how to make money online. As an example I will show you how American Express and other credit card companies do that.

So, I just received an email from American Express.

They offered me nice 2012 Appointment Book and/or 2012 Pocket Organizer. Amex nicely offer this great gifts for FREE!

Animated pictures show how cool the book and the organizer are and that appointment book even has 8 colored maps inside.

Sales email says:   “Get two gifts or just one. It’s up to you. You’ll pay a small shipping and handling charge ($2.97 for the Appointment Book and/or $1.97 for the Pocket Organizer, plus applicable state taxes) that will be conveniently billed to your Credit Card.”

WOW, right? You think to yourself, that that would be so convenient to receive such gifts!  2012 is almost here and it’s so cheap!! 

Make Money Online Credit Card Company Strategy

But, what’s the catch? Why Amex offers you this stuff for FREE? Is it just because they love their customers so much?
And of course, here is the catch in a small print…

We’re offering you the … FREE for the first year, as part of our extraordinary Executive Organizer Plan.”

Well, let’s go further, click “Learn more” and look for a small print, let’s see what exactly Amex means by Executive Organizer Plan.

“Offer Details: Please send me my free gift as part of the Executive Organizer Plan….With the Executive Organizer Plan, each year I will receive advance notice of shipments of future annual editions with instructions on how to decline that edition. If I am satisfied I need do nothing and that annual edition will be sent to me and charged to the card provided today at the then prevailing price (currently $27.99 for the Appointment Book and/or $14.99 for the Pocket Organizer) …  If I do not want the books, I may simply return the cancellation card within 20 days or call American Express at the Customer Service phone number on the back of my Card. My complete satisfaction is assured by American Express Publishing. “

Do you see the catch now?

Have you notice the words I highlighted, especially and the word “currently” – that basically says that next year books can actually cost you more than that.

What Amex does is that they get your permission to charge your credit card. And yeah, they’ll give those books for free now. They’ll get money back later.

What strategy American Express use to make money online?

1) They get you on a mailing list. By making a payment, you are subscribing to their Executive Organizer Plan. Which probably will get you to receive post letters with other different offers.

2) Automatic Credit Card charge. By getting the books today for a few bucks, you are agreeing to automatically bill your credit card later. Of course, they’ll give you the option to decline the charge. But they hope that most of the people will “forget”, “decide not to bother”, “were not home”, “did not see the mail” or maybe they will just like the product…

3) Credit Card Fees. This is the worst one. In case you are not using your credit card for a while, you just completely forgot that you signed up for the offer.  It’s been a year since!! They charge your credit card, and if for any reason you don’t pay it off, you being charged the fees that can be as high as 35% of interest and add up.

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