Originally Posted by
PositiveVariance
As most of you know the true upside/value to a merchant doing monthly/reoccurring payments is to have the customer sign one time to agree to it, and most customers are to lazy to do the research to figure out how to take the reoccurring payment off their account when they no longer want it. Gym memberships? Fortunately our little scammer friend will not be able to take credit cards since he will have immediate chargebacks and they will no longer accept him as a merchant, and this is where he will run into his issue of having to ask each and every customer every month to send another $99.
Yeah unfortunately he can't hit people with recurring payments, because that would be a perfect score for him, for the reasons you stated.
However, I'm sure that Chrissy and Stacy believe they came up with a genius plan which solves the long-running flaw in Chrissy's inner circle model: Once suckers pay the one-time membership fee, then what?
Chrissy previously brought in new income by forcing these "one time" members to pay again, but there's only so many times he can pull that before even the dimmest of bulbs pull out. He then became a BOL affiliate and revolved the scam mostly around that, which appears to have been quite successful. However, he still has the "inner circle" issue where these members don't do him a lot of good if they don't sign up for BOL and lose.
This solves it. I'm sure the people who paid $1000 to join are absolutely thrilled that they're now going to be on the hook for $99/month, just like new people who hadn't paid any fee to join. I doubt he is grandfathering anyone. He's probably counting on them being afraid to object, knowing that he kicks people out who dare speak up. Kinda the sunk cost fallacy.
Anyway, he thinks this is such a genius move because the $99 is a lot easier for people to bring themselves to pay than the $500-$1000, and yet he will get a recurring $99 from the suckers whom he has hooked. So it solves both the new customer issue and the lack of recurring income issue.
Most importantly, this chance was probably necessary
because his main YouTube channel is gone, and he realizes that he will not have a continuous stream of suckers rolling in, like he did before. So this is actually a sign that he's already feeling the financial pain from the YouTube removal.