The Mobile PIN Submit Offers used to be the staple of the mobile industry in CPA Marketing. However, according to insiders, this could be changing very soon. Verizon has instituted a new refund policy that will basically put most PIN submit companies out of business or at least prevent them from using CPA marketing anymore.
Verizon last month instituted a policy in which any mobile content provider that has over 5% refund rate on their products, will receive a 90 day suspension from the Verizon network. If any provider has over 8% refund rate, they will be terminated for 180 days. This basically would put most providers out of business, because it would also include as part of it the inability to bill current customers, meaning that all Verizon customers already signed up would be kicked from the reoccurring billing.
This means all those mobile US ringtone offers will probably disappear very fast. Some providers have already singled that they will continue running the PIN submit offers, but without Verizon. With Verizon having almost 40% of the market share of mobile subscribers in the US, this would make it almost impossible to convert these offers.
Worse is the risk that companies that gamble continue working with Verizon invest in paying a CPAs to affiliates, and then are hit with being kicked off and unable to pay their affiliates.
Already in the last two years we’ve seen three major mobile content PIN companies run into the ground after very public lawsuits and regulators going after them for fraudulent practices. The risk to affiliates and networks seems even more so now. This could be the next “Acai” disaster for the business, where tons of companies continue to allow these offers to be run, only to not get paid potentially millions of dollars when the mobile content providers are suspended and not paid by Verizon.
