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Yeah, this isn't unique to AOL or even to online subscriptions. A lot of the revenue pulled in by the big chain gyms, for example, is from monthly access fees
by georgemcbay 16y ago
Yeah, this isn't unique to AOL or even to online subscriptions. A lot of the revenue pulled in by the big chain gyms, for example, is from monthly access fees being pulled from members who haven't been to the gym in months or years and may even have forgotten about the ongoing payment.
Between this situation and the way most companies make it so easy to subscribe (just click here!) and so difficult to cancel (just talk to 5 representatives on the phone, each of who will put you on hold for 20 minutes) I am extremely reluctant to sign up for anything that is vaguely subscription based anymore, but I know I'm probably way in the minority on that so there's still billions to be made here.
- fvryan 16y agoWow, I didn't even think about gym memberships ect, using this as a biz model, but it does make complete sense. People buying memberships on Jan 1 for resolutions and then never going back.
- Afton 16y agoThis is a big gym's business model. I've read that the goal is to have around 10% active members. The other part of the model is to get folks who are active into additional cost classes.
- mattm 16y agoI've heard this as well. If everyone who was a member actually used the gym 3 times a week for an hour, the gym would need to be much, much larger and charge much more. In effect, all the people who pay but don't use are subsidizing the people that pay and make the most out of the service.