Why auto-renew instead of canceling the subscription after free-trial?

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Almost all companies give you a 7/14/30 day free trial to try their service (eg: Netflix, Spotify).



Some people forget to cancel the subscription and after the free trial expires, these companies begin charging instead of asking if you would like to cancel the subscription.



What's the purpose behind of this design? Is it because they want your money and they know that you will forget to cancel the subscription? Or is it because they can't auto cancel your subscription after the free trial?










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    up vote
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    down vote

    favorite












    Almost all companies give you a 7/14/30 day free trial to try their service (eg: Netflix, Spotify).



    Some people forget to cancel the subscription and after the free trial expires, these companies begin charging instead of asking if you would like to cancel the subscription.



    What's the purpose behind of this design? Is it because they want your money and they know that you will forget to cancel the subscription? Or is it because they can't auto cancel your subscription after the free trial?










    share|improve this question









    New contributor




    Yami Odymel is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
    Check out our Code of Conduct.





















      up vote
      1
      down vote

      favorite









      up vote
      1
      down vote

      favorite











      Almost all companies give you a 7/14/30 day free trial to try their service (eg: Netflix, Spotify).



      Some people forget to cancel the subscription and after the free trial expires, these companies begin charging instead of asking if you would like to cancel the subscription.



      What's the purpose behind of this design? Is it because they want your money and they know that you will forget to cancel the subscription? Or is it because they can't auto cancel your subscription after the free trial?










      share|improve this question









      New contributor




      Yami Odymel is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
      Check out our Code of Conduct.











      Almost all companies give you a 7/14/30 day free trial to try their service (eg: Netflix, Spotify).



      Some people forget to cancel the subscription and after the free trial expires, these companies begin charging instead of asking if you would like to cancel the subscription.



      What's the purpose behind of this design? Is it because they want your money and they know that you will forget to cancel the subscription? Or is it because they can't auto cancel your subscription after the free trial?







      credit-card






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      Yami Odymel is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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      share|improve this question









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      edited 2 hours ago









      Bob Baerker

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      Yami Odymel

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          4 Answers
          4






          active

          oldest

          votes

















          up vote
          6
          down vote



          accepted










          Companies do it because they know you'll forget, and they get money as a result.



          You're only getting the free trial due to the number of forgetful conversions they get as a result.






          share|improve this answer








          New contributor




          Selkie is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
          Check out our Code of Conduct.

















          • I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
            – Mark Stewart
            3 hours ago










          • Oh.. okay. I thought it's due to the system structure design or some legal stuff.
            – Yami Odymel
            2 hours ago






          • 2




            "You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
            – JMac
            2 hours ago

















          up vote
          2
          down vote













          In some cases it is a scam, they never intend to let you cancel your free subscription easily.



          Do a Google search to review the cancellation comments about the company you are considering a free trial with.



          While not true for all companies, you should always check first. Sometimes it is by intent, sometimes poor quality control, in all cases it is expensive.



          Example https://productforums.google.com/forum/#!topic/play/lqULU7_dZsc



          Consider: If the free subscription was sufficient for you to realize you can't live without it. They would not need you credit card for the free period, you would be calling them the day it ended, to get it reconnected.






          share|improve this answer


















          • 1




            That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
            – Kevin
            2 hours ago

















          up vote
          1
          down vote














          Some people got charged after the free trial because they forgot to cancel the subscription. But... what's the purpose behind of this design?




          So they can charge people after the free trial because they forgot to cancel the subscription.






          share|improve this answer



























            up vote
            1
            down vote













            Yes, these companies benefit from people forgetting to cancel. However, besides this, there is another reason why companies do this.



            One of the obstacles that a business has to making a sale is the effort that is required of the customer. You can have the best product at the best price in the whole world, but if too much effort is required of the customer to make the purchase, it will be tough to make sales.



            In order to subscribe, the customer needs to go find their credit card, enter in the numbers, address, etc. It takes some effort on the customer's part. When a new potential customer comes along and signs up for the free trial, they have to go through the process of signing up. If the free trial automatically cancels a subscription at the end of the trial, then in order to convert the potential customer into an actual customer, another customer action is required, which places a barrier toward conversion. Instead, businesses combine signing up for the trial and subscribing to the service all in one action. Now, it requires a customer action to cancel, meaning that there is a barrier in place to discourage the customer from leaving.



            There are many people on the fence about whether or not to pay for a subscription. These people would perhaps decide it is not worth the effort to start a paid subscription, but if they have already gone through the process of the free trial, they instead decide it is not worth their effort to cancel.






            share|improve this answer




















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              4 Answers
              4






              active

              oldest

              votes








              4 Answers
              4






              active

              oldest

              votes









              active

              oldest

              votes






              active

              oldest

              votes








              up vote
              6
              down vote



              accepted










              Companies do it because they know you'll forget, and they get money as a result.



              You're only getting the free trial due to the number of forgetful conversions they get as a result.






              share|improve this answer








              New contributor




              Selkie is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
              Check out our Code of Conduct.

















              • I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
                – Mark Stewart
                3 hours ago










              • Oh.. okay. I thought it's due to the system structure design or some legal stuff.
                – Yami Odymel
                2 hours ago






              • 2




                "You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
                – JMac
                2 hours ago














              up vote
              6
              down vote



              accepted










              Companies do it because they know you'll forget, and they get money as a result.



              You're only getting the free trial due to the number of forgetful conversions they get as a result.






              share|improve this answer








              New contributor




              Selkie is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
              Check out our Code of Conduct.

















              • I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
                – Mark Stewart
                3 hours ago










              • Oh.. okay. I thought it's due to the system structure design or some legal stuff.
                – Yami Odymel
                2 hours ago






              • 2




                "You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
                – JMac
                2 hours ago












              up vote
              6
              down vote



              accepted







              up vote
              6
              down vote



              accepted






              Companies do it because they know you'll forget, and they get money as a result.



              You're only getting the free trial due to the number of forgetful conversions they get as a result.






              share|improve this answer








              New contributor




              Selkie is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
              Check out our Code of Conduct.









              Companies do it because they know you'll forget, and they get money as a result.



              You're only getting the free trial due to the number of forgetful conversions they get as a result.







              share|improve this answer








              New contributor




              Selkie is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
              Check out our Code of Conduct.









              share|improve this answer



              share|improve this answer






              New contributor




              Selkie is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
              Check out our Code of Conduct.









              answered 3 hours ago









              Selkie

              1762




              1762




              New contributor




              Selkie is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
              Check out our Code of Conduct.





              New contributor





              Selkie is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
              Check out our Code of Conduct.






              Selkie is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
              Check out our Code of Conduct.











              • I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
                – Mark Stewart
                3 hours ago










              • Oh.. okay. I thought it's due to the system structure design or some legal stuff.
                – Yami Odymel
                2 hours ago






              • 2




                "You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
                – JMac
                2 hours ago
















              • I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
                – Mark Stewart
                3 hours ago










              • Oh.. okay. I thought it's due to the system structure design or some legal stuff.
                – Yami Odymel
                2 hours ago






              • 2




                "You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
                – JMac
                2 hours ago















              I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
              – Mark Stewart
              3 hours ago




              I would use a virtual (one-time use) credit card number most major banks offer as an option. That way they can only hit you once for the auto-renewal
              – Mark Stewart
              3 hours ago












              Oh.. okay. I thought it's due to the system structure design or some legal stuff.
              – Yami Odymel
              2 hours ago




              Oh.. okay. I thought it's due to the system structure design or some legal stuff.
              – Yami Odymel
              2 hours ago




              2




              2




              "You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
              – JMac
              2 hours ago




              "You're only getting the free trial due to the number of forgetful conversions they get as a result." Presumably it's also to get you hooked on their service. By adding the credit card requirement it's harder to spoof a bunch of free 1 month accounts.
              – JMac
              2 hours ago












              up vote
              2
              down vote













              In some cases it is a scam, they never intend to let you cancel your free subscription easily.



              Do a Google search to review the cancellation comments about the company you are considering a free trial with.



              While not true for all companies, you should always check first. Sometimes it is by intent, sometimes poor quality control, in all cases it is expensive.



              Example https://productforums.google.com/forum/#!topic/play/lqULU7_dZsc



              Consider: If the free subscription was sufficient for you to realize you can't live without it. They would not need you credit card for the free period, you would be calling them the day it ended, to get it reconnected.






              share|improve this answer


















              • 1




                That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
                – Kevin
                2 hours ago














              up vote
              2
              down vote













              In some cases it is a scam, they never intend to let you cancel your free subscription easily.



              Do a Google search to review the cancellation comments about the company you are considering a free trial with.



              While not true for all companies, you should always check first. Sometimes it is by intent, sometimes poor quality control, in all cases it is expensive.



              Example https://productforums.google.com/forum/#!topic/play/lqULU7_dZsc



              Consider: If the free subscription was sufficient for you to realize you can't live without it. They would not need you credit card for the free period, you would be calling them the day it ended, to get it reconnected.






              share|improve this answer


















              • 1




                That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
                – Kevin
                2 hours ago












              up vote
              2
              down vote










              up vote
              2
              down vote









              In some cases it is a scam, they never intend to let you cancel your free subscription easily.



              Do a Google search to review the cancellation comments about the company you are considering a free trial with.



              While not true for all companies, you should always check first. Sometimes it is by intent, sometimes poor quality control, in all cases it is expensive.



              Example https://productforums.google.com/forum/#!topic/play/lqULU7_dZsc



              Consider: If the free subscription was sufficient for you to realize you can't live without it. They would not need you credit card for the free period, you would be calling them the day it ended, to get it reconnected.






              share|improve this answer














              In some cases it is a scam, they never intend to let you cancel your free subscription easily.



              Do a Google search to review the cancellation comments about the company you are considering a free trial with.



              While not true for all companies, you should always check first. Sometimes it is by intent, sometimes poor quality control, in all cases it is expensive.



              Example https://productforums.google.com/forum/#!topic/play/lqULU7_dZsc



              Consider: If the free subscription was sufficient for you to realize you can't live without it. They would not need you credit card for the free period, you would be calling them the day it ended, to get it reconnected.







              share|improve this answer














              share|improve this answer



              share|improve this answer








              edited 2 hours ago

























              answered 3 hours ago









              James Jenkins

              1944




              1944







              • 1




                That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
                – Kevin
                2 hours ago












              • 1




                That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
                – Kevin
                2 hours ago







              1




              1




              That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
              – Kevin
              2 hours ago




              That's a good point about companies making it difficult to cancel. I've heard of ones that will only let you cancel by phone or even snail-mail.
              – Kevin
              2 hours ago










              up vote
              1
              down vote














              Some people got charged after the free trial because they forgot to cancel the subscription. But... what's the purpose behind of this design?




              So they can charge people after the free trial because they forgot to cancel the subscription.






              share|improve this answer
























                up vote
                1
                down vote














                Some people got charged after the free trial because they forgot to cancel the subscription. But... what's the purpose behind of this design?




                So they can charge people after the free trial because they forgot to cancel the subscription.






                share|improve this answer






















                  up vote
                  1
                  down vote










                  up vote
                  1
                  down vote










                  Some people got charged after the free trial because they forgot to cancel the subscription. But... what's the purpose behind of this design?




                  So they can charge people after the free trial because they forgot to cancel the subscription.






                  share|improve this answer













                  Some people got charged after the free trial because they forgot to cancel the subscription. But... what's the purpose behind of this design?




                  So they can charge people after the free trial because they forgot to cancel the subscription.







                  share|improve this answer












                  share|improve this answer



                  share|improve this answer










                  answered 3 hours ago









                  Kevin

                  52358




                  52358




















                      up vote
                      1
                      down vote













                      Yes, these companies benefit from people forgetting to cancel. However, besides this, there is another reason why companies do this.



                      One of the obstacles that a business has to making a sale is the effort that is required of the customer. You can have the best product at the best price in the whole world, but if too much effort is required of the customer to make the purchase, it will be tough to make sales.



                      In order to subscribe, the customer needs to go find their credit card, enter in the numbers, address, etc. It takes some effort on the customer's part. When a new potential customer comes along and signs up for the free trial, they have to go through the process of signing up. If the free trial automatically cancels a subscription at the end of the trial, then in order to convert the potential customer into an actual customer, another customer action is required, which places a barrier toward conversion. Instead, businesses combine signing up for the trial and subscribing to the service all in one action. Now, it requires a customer action to cancel, meaning that there is a barrier in place to discourage the customer from leaving.



                      There are many people on the fence about whether or not to pay for a subscription. These people would perhaps decide it is not worth the effort to start a paid subscription, but if they have already gone through the process of the free trial, they instead decide it is not worth their effort to cancel.






                      share|improve this answer
























                        up vote
                        1
                        down vote













                        Yes, these companies benefit from people forgetting to cancel. However, besides this, there is another reason why companies do this.



                        One of the obstacles that a business has to making a sale is the effort that is required of the customer. You can have the best product at the best price in the whole world, but if too much effort is required of the customer to make the purchase, it will be tough to make sales.



                        In order to subscribe, the customer needs to go find their credit card, enter in the numbers, address, etc. It takes some effort on the customer's part. When a new potential customer comes along and signs up for the free trial, they have to go through the process of signing up. If the free trial automatically cancels a subscription at the end of the trial, then in order to convert the potential customer into an actual customer, another customer action is required, which places a barrier toward conversion. Instead, businesses combine signing up for the trial and subscribing to the service all in one action. Now, it requires a customer action to cancel, meaning that there is a barrier in place to discourage the customer from leaving.



                        There are many people on the fence about whether or not to pay for a subscription. These people would perhaps decide it is not worth the effort to start a paid subscription, but if they have already gone through the process of the free trial, they instead decide it is not worth their effort to cancel.






                        share|improve this answer






















                          up vote
                          1
                          down vote










                          up vote
                          1
                          down vote









                          Yes, these companies benefit from people forgetting to cancel. However, besides this, there is another reason why companies do this.



                          One of the obstacles that a business has to making a sale is the effort that is required of the customer. You can have the best product at the best price in the whole world, but if too much effort is required of the customer to make the purchase, it will be tough to make sales.



                          In order to subscribe, the customer needs to go find their credit card, enter in the numbers, address, etc. It takes some effort on the customer's part. When a new potential customer comes along and signs up for the free trial, they have to go through the process of signing up. If the free trial automatically cancels a subscription at the end of the trial, then in order to convert the potential customer into an actual customer, another customer action is required, which places a barrier toward conversion. Instead, businesses combine signing up for the trial and subscribing to the service all in one action. Now, it requires a customer action to cancel, meaning that there is a barrier in place to discourage the customer from leaving.



                          There are many people on the fence about whether or not to pay for a subscription. These people would perhaps decide it is not worth the effort to start a paid subscription, but if they have already gone through the process of the free trial, they instead decide it is not worth their effort to cancel.






                          share|improve this answer












                          Yes, these companies benefit from people forgetting to cancel. However, besides this, there is another reason why companies do this.



                          One of the obstacles that a business has to making a sale is the effort that is required of the customer. You can have the best product at the best price in the whole world, but if too much effort is required of the customer to make the purchase, it will be tough to make sales.



                          In order to subscribe, the customer needs to go find their credit card, enter in the numbers, address, etc. It takes some effort on the customer's part. When a new potential customer comes along and signs up for the free trial, they have to go through the process of signing up. If the free trial automatically cancels a subscription at the end of the trial, then in order to convert the potential customer into an actual customer, another customer action is required, which places a barrier toward conversion. Instead, businesses combine signing up for the trial and subscribing to the service all in one action. Now, it requires a customer action to cancel, meaning that there is a barrier in place to discourage the customer from leaving.



                          There are many people on the fence about whether or not to pay for a subscription. These people would perhaps decide it is not worth the effort to start a paid subscription, but if they have already gone through the process of the free trial, they instead decide it is not worth their effort to cancel.







                          share|improve this answer












                          share|improve this answer



                          share|improve this answer










                          answered 2 hours ago









                          Ben Miller

                          72.8k18198262




                          72.8k18198262




















                              Yami Odymel is a new contributor. Be nice, and check out our Code of Conduct.









                               

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