Which would you rather pay?
$16.95 for one month's service
$33.90 for six month's service (Four months free!)
$118.65 for one year's service (Five months free!)
A neighbor has an XM radio, and after the three month trial period, they sign up for a year's service, thinking it is cheaper as they are "saving five months!" versus the six-month contract which saves only a paltry four. Yea, they are paying nearly ten bucks a month for a service that I am paying less than six bucks for.
Anyway, the year is up, and she discoverers her credit card is dinged for nearly $200 - the cost of a year's service at full price. She didn't realize she was signing a "negative option" contract.
An hour or two on the phone, and they knock it down to about $150 - which is still a lot of money. Another year goes by. You can guess what happens.
So, two more hours on the phone, and she talks them down to $150 again - still twice what I am paying. And she congratulates herself on "saving money".
My partner explains to her why I sent in a money order - and what "negative option" means.
"I never authorized them to charge my credit card!" She says. Oh, but she did. It's right there in the adhesion contract - perpetual charging of her credit card, at least until the expiration date of the card.
This is how negative option works, and how wear you down technique works.
They count on you getting tired and just saying "to heck with it!" and letting it go - and they win, not a lot of money, but a little bit.
But a little bit, times 100 million people is a lot of money. A real lot of money!