xBMANx - Internet Marketing & Beyond

How To Destroy Your Reputation Online

October 5th, 2007

I recently discovered the site Zecco.com.  Its an online stock trading/brokerage site.  Their goal seems to be creating a community site out of stock trading.  Their method of attracting business away from huge companies like eTrade, Fidelity, ScottTrade etc was to offer 40 free trades per month for FREE (no minimum balance).  Now this is an enticing offer considering stock trades can cost $5-$25 each.  I joined the site and then sh** hit the fan.  Approximately 2 days after joining they declared they had a special offer.  Now everyone can have 10 trades per month with a minimum of $2,500 balance and increased fees but “better service.”  Their ads up to this point and all information on the site said that the 40 trades per month offer was not introductory and not a trick. Oh really?  Seems like if you are going to change it, thats an introductory offer.  Zecco’s loyal users who were touting their website in industry forums and blogs quickly got pissed off and started berating the company in their own forums.  To control damage Zecco started moderating the forums and deleting posts and threads that were bad mouthing the company.

I personally cancelled my account.  Can I maintain a minimum balance of $2,500 to get 10 free trades per month?  Of course!  I feel like they partook in bait and switch advertising and so do a lot of their much more loyal customers.  I of course have no numbers as to account numbers before and after their new policy but I have to suspect that they have lost a lot of trust in their offerings and seen a huge decline in active accounts.

The lesson to be learned here is to make all of the marketing claims you want, but don’t reneg on them or you will lose your website’s or company’s loyal following.  If I were Zecco I would allow all existing accounts to stay with the old 40 free trades per month and sign new accounts with their new pricing structure to mitigate damages.

xBMANx

Entry Filed under: General Internet Advertising