Is Butterfly Marketing a Scam?

Today I just wanted to quickly comment about Butterfly Marketing 2.0.  A scam?  This is Mike Filsaime’s “relaunch” of his popular selling product that he released about two years ago.  It originally sold for, and has until now, $1997.  Many people, included many of the “gurus” have purchased this product for the two grand.  Mike, recently put this entire product on disc and paper and offered it for for $29.95, “the cost of shipping”.  The only criteria being that you had to try his newsletter for a month.  If you don’t cancel his newsletter before 30 days passes, you will be billed $39.95 per month recurring for it.

Now on the surface this looks to be pretty straight forward, but I have a couple of problems with the ethics behind what he did.  First of all, I have personally had a VERY difficult time in the past trying to cancel another product of his, before it went to recurring payments (also for his newsletter).

I did order Butterfly Marketing this time and while he does a better job of spelling out how to cancel, I find it funny and frustrating that on the page my subscription doesn’t show up after entering my info, even though it shows my name and knows I have an account.  It just won’t show my subscription, thus allowing me to cancel.  So, I’m going to have to find a toll number to call to cancel in the next week or so.  This may not seem like a big thing but it’s part of the profile that he has created by making it difficult for people to cancel his products, thus ensuring a few more payments are made to him, which he of course won’t refund, because you read the disclosure.

So, back to Butterfly Marketing 2.0….. I have just recently received it and although I did not order the original version, I have found that I have an identical digital version on my computer.  From where, I do not know.  I compared what I have to what I received in the mail and they are identical, except Mike has updated his picture that goes above his signature.  I have read through about a quarter of the 124 pages and can verify that it is the same as what I already had.  In addition to this, I received 10 discs.  They are mostly interviews that Mike has done with people pertaining to the ‘Butterfly Effect’ of this type of marketing.

So I won’t pretend to give you anymore of a review of the product other than to reiterate that it seems to just be an identical relaunch of his previous product, but used in a way to get people to sign up for his $40 per month newsletter.

As to my other issue with the ethics behind this. I have seen and heard Mike praise and moan and pat himself on the back for the “gamble” that he is taking by “giving away” this information.  He had video of himself just talking about what a sacrifice he is making and that he is spending $17 per package for a total of 10,000 packages.  Then he talks about the almost $200,000 of his own money that he is willing to sacrifice for this and all that he asks for is us to pay the $29.95 cost of shipping.

C’mon!  Does he seriously think that everyone will believe this sob story?  The facts are that he may very well have spent $17 per product to get ready and package.  That, I believe includes the cost of putting them into the flat rate USPS box that they get shipped in.  This flat rate box doesn’t cost anymore than $12.95 to ship, if that much.  So there is already a profit of, 29.95-12.95=hmmmm, that’s funny, it equals $17 which is his stated cost to produce it and get it ready for shipping!!

So, this whole sob story really is a break-even story at worst, not a loss for him.  In the end he WILL get more subscribers for his newsletter and he WILL get some people to pay him that had wanted to cancel but forgot or couldn’t figure out how.  This is a profit center for him and a way to create future payments, build his list and create continuity programs.

Now, I think really it’s a good plan by him for his business, but I don’t like, as mentioned, some of his tactics used in implementing it.  Making it hard to cancel, bemoaning his potential financial losses and completely misrepresenting his shipping costs are ethical issues that I do not condone.

I have reason to believe that Butterfly Marketing is a fine product, but I hope people weren’t convinced to order it because of the above issues.

I’d like to hear your thoughts!

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