AOL's Email Tax Scheme

[Audioholics]

<A href="http://www.audioholics.com/news/editorials/AOLemailtaxscheme.php"><IMG style="WIDTH: 80px; HEIGHT: 100px" alt=[aollogo] hspace=10 src="http://www.audioholics.com/news/thumbs/aollogo_th.gif" align=left border=0></A>AOL has proposed the adoption of a system called CertifiedEmail, provided by Goodmail Systems. Under this pay-to-send system, affluent mass-emailers who are willing to pay AOL the equivalent of an "email tax" would get to bypass AOL's spam filters and get guaranteed delivery to the inboxes of AOL customers.

Everyone who can't afford to pay AOL's "email tax" - including charities, small businesses, civic organizations, and even families with mailing lists - will have no guarantee that their emails will be delivered. If other companies follow AOL in adopting pay-to-send systems, the Internet will become permanently divided into two classes of users - those who can afford to pay for guaranteed delivery and everyone else left behind with unreliable service. Concerned? You should be - read on...

[Read the Article]

 

[markw]

What next?

<A href="http://www.audioholics.com/news/editorials/AOLemailtaxscheme.php"><IMG style="WIDTH: 80px; HEIGHT: 100px" alt=[aollogo] hspace=10 src="http://www.audioholics.com/news/thumbs/aollogo_th.gif" align=left border=0></A>AOL has proposed the adoption of a system called CertifiedEmail, provided by Goodmail Systems. Under this pay-to-send system, affluent mass-emailers who are willing to pay AOL the equivalent of an "email tax" would get to bypass AOL's spam filters and get guaranteed delivery to the inboxes of AOL customers.

Everyone who can't afford to pay AOL's "email tax" - including charities, small businesses, civic organizations, and even families with mailing lists - will have no guarantee that their emails will be delivered. If other companies follow AOL in adopting pay-to-send systems, the Internet will become permanently divided into two classes of users - those who can afford to pay for guaranteed delivery and everyone else left behind with unreliable service. Concerned? You should be - read on...

[Read the Article]

I suppose they will be offering AOL subscribers a premium service that allows them to block this "AOL authorized" spam?

This reminds me of Cincinatti Microwave who makes money on both sides of the fence by first selling radar guns to the law enforcement agencies and then marketing radar detectors to the general population.

 

[Tsunamii]

I chaulk it up to AOL looking to find a new Business modle. They are just not a viable ISP for the future. The email tax is just silly and will never fly..
Update:
Senator Ron Wyden, Democrat of Oregon, will introduce new legislation today that would prohibit Internet network operators from charging companies for faster delivery of their content to consumers or favoring some content providers over others.
Though Im sure this spawned from things like Cogent and Level3 fighting it will effect "express" business models across the board.
Here is a link to the article

http://www.nytimes.com/2006/03/02/technology/02online.html?_r=3&pagewanted=all&oref=slogin&oref=slogin&oref=slogin

 

[Naves74]

AOL is such a joke. Everyone that asks me to fix thier computer 9/10 times its aol trying to take over thier computer and do what it wants with it. I swear AOL's spyware detector lets certian spyware onto your computer on purpose. All thier systems are a horrible. This is just another lamo attempt for them to make more money off of ignorant computer users. Which is thier number one goal!

 

[thxgoon]

AOL is a business and I don't think it would be in their best interest to hinder their clients' ability to receive email from friends and family members. I'm sure they are smarter than that. Maybe they have a 'safelist' members can use to prevent emails from being filtered.

This all seems like a big company doing something just because it can. I think it's unfair to AOL customers who are paying for their service to be forced to receive emails that they do not want simply because the sender has the money to buy the right!

 

[Audioholics]

I think y'all may be missing the part where small companies like Audioholics will be charged actual money to send opt-in AOL users email. Basically, what will happen is that we won't - and so our newsletter may or may not get through the AOL filters...

And AOL will be incentivized to make sure our legitimate email doesn't go through so that they can charge us to have the emails go through... Now you may see the potential for really screwing things up here. It's an AOL tax and if it works, loook for it to come to another provider, then another... soon email will basically be taxed - all to "protect" us from evil spammers. The problem is, it will only protect us from the poorer ones who don't pay the fees.

And with how much money these people make, they pay the fees - especially since it all but guarantees them access to the users.

 

[Sheep]

I'll download it...

This is why I use MSN and Hotmail. Its Free ya'll.

SheepStar

 

[Buckeyefan 1]

It would appear this move would increase spam to AOL users. If an internet mass emailing company is paying AOL a penny+ an address, what motivation does AOL have in protecting it's users privacy. It's a big money making tool. I'm sure AOL has been offered millions for their lists, and they've been racking their brains on how to cash in. This move isn't costing AOL users money to send emails, but in fact opens up the inbox for all out advertising. My question is - how potent will AOL's spam blocker be when it's working against their business model?

Like MarkW said with Cincy Microwave, they're making money on both sides of the fence. AOL's next chess move will be to charge its users extra for enhanced spam control.

 

[sjdgpt]

I guess I will be the lone supporter of AOL's proposed policy.

Required Disclosures:

1. I do not directly own AOL stock.

2. I do not use AOL products or services.

3. I own a business.

4. I send emails to customers.




And yes I support AOL's proposed policy.

In the simplest terms, there is no free lunch. Operating any type of business is going require money. The business must try to recoop operating costs from the customer(s) who use the services provided by the business.

In this particular case, the users of the AOL services are mass mailers who initiate the email from another service provider (or their own servers), and expect AOL to deliver the goods (email) for free of charge. Nice idea for somebody other than AOL.

So AOL is going to force email generators to pay the piper? Is that fair? Sure, why should AOL or any other business be required to work for free?


How does that affect me as a business owner? Very little. It is a cost of doing business. And since there is no free lunch, I will more closely judge the customers that receive my emails and/or alter my prices to compenstate for the increase costs of doing business.


Is this fair to nonprofit groups? Why should non profits, my church or any other entity receive free service? Remember, with the exception of the US Congressional members, the USPS does not deliver mail for free. And USPS is a quasi governmental god knows what business that is suppose to barely breakeven. AOL is a real business with a financial responsbility to the AOL stockholders.

Please correct me if I am wrong ... Audioholics is a business. The operating costs of this business are recouped by selling advertising space and links to other businesses. If emails were to cost Audioholics money, the choices are going to be to access a user fee for the users of the forum and/or raising advertising rates. Or maybe selling more Audioholics gear. Or maybe not having beer at the company picnic.


True, as business owners, we should oppose any price increases that affect our operating costs. But let's be practical, is an email fee really going to be the end of the world? And is not time for email users to pay for the "free" service?

 

[thxgoon]

And AOL will be incentivized to make sure our legitimate email doesn't go through so that they can charge us to have the emails go through...

I certainly hope not as I can see where this would lead. My impression was that they would allow major spammers who are currently blocked access if they proved legitimate and willing to pay the price. In that senario the end user suffers. Blocking email that is wanted by the end user almost sounds illegal. Is it? Does anyone have AOL who could shed light on how this works?

 

[thxgoon]

Remember, with the exception of the US Congressional members, the USPS does not deliver mail for free. And USPS is a quasi governmental god knows what business that is suppose to barely breakeven.

Do you pay for your USPS mailbox? Why should users have to pay on both ends? If your mailman didn't deliver your mail he would go to jail.

 

[sjdgpt]

I'll download it...

This is why I use MSN and Hotmail. Its Free ya'll.

SheepStar

You may not "pay" for the service, but somebody is paying for the service. Our friends that work at MSN are receiving paychecks and the stock holders are happy. Where is all that money coming from if the service is "free"?

 

[sjdgpt]

Do you pay for your USPS mailbox? Why should users have to pay on both ends? If your mailman didn't deliver your mail he would go to jail.

Actually I do pay for my mailbox. Business security reasons. And if I needed a bigger box, I would have to pay more for the bigger box.

But that is just the smart aleck answer.


In the case of the AOL tax, I bet AOL will have a tiered pricing structure. Those that are AOL subscribers will pay a lower rate (because AOL is already kicking them in the butt with the high AOL fees), and those who are not AOL subscribers will pay the higher rate.

Seems fair to me.

 

[Sheep]

You may not "pay" for the service, but somebody is paying for the service. Our friends that work at MSN are receiving paychecks and the stock holders are happy. Where is all that money coming from if the service is "free"?

Its called an ad.

SheepStar

 

[goodman]

I Hate AOL

Just like some people are passionate in their distaste for Best Buy, Bose, and Monster Cable, I hate AOL. Years ago when I tried to quit AOL, they just ignored me and kept debiting my charge card every month. Finally, I had to cancel the credit card just to get rid of them. And then they had the nerve to try to collect from me. They have to be the pimple on the hide of Time Warner. Why doesn't everybody just dump them?

 

[sjdgpt]

I hate AOL. ........ Why doesn't everybody just dump them?

Because they are creatures of habit?

Because the insideous software was pre-loaded on their computer?

Because they can't get AOL to cancel their account?

Because their momma told them to use AOL?



Who knows the reason for some people.

 

[Hi Ho]

I just noticed this thread stickied here and I wholeheartedly agree with you Clint. This is a rediculous proposal.

I use Hotmail (now Windows Live Mail) and I get zero spam in my inbox. Anything I get goes into the junk mail folder. If people could pay to ensure that their junk came to my inbox, I would be furious.

I too hate AOL with a passion. I don't get why so many people still use it. Their software is invasive, poorly written, and bloated. AOL probably causes as many, or more problems then malware. Hell, it should be classified as malware!

Is AOL still losing customers at an insane rate or has it turned around? I thought I remembered reading about AOL's shrinking customer base.

 

[Audioholics]

They are still figuring things out. The latest I heard is that they are raising prices on dial-up to "encourage" more members to choose high speed.

AOL has had the infrastructure for quite some time to do some pretty impressive things (like spoon feed IPTV content and such). Instead they have squandered it on a system that dumbs-down users and maintains levels of proprietary features that ensure AOL users have no idea of how the Internet really works. Common things I hear from AOL users who try to migrate to an AOL-less Internet:

- Where do I put my keyword to find something on the Internet?
- Where are the chat rooms?
- Why can't I get my AOL email in Outlook like I do with my office email account?
- You mean that if I quit using AOL I can't download or keep my old email?

AOL could have educated the masses - instead they appear to have dumbed them down.

 

[Sheep]

They are still figuring things out. The latest I heard is that they are raising prices on dial-up to "encourage" more members to choose high speed.

AOL has had the infrastructure for quite some time to do some pretty impressive things (like spoon feed IPTV content and such). Instead they have squandered it on a system that dumbs-down users and maintains levels of proprietary features that ensure AOL users have no idea of how the Internet really works. Common things I hear from AOL users who try to migrate to an AOL-less Internet:

- Where do I put my keyword to find something on the Internet?
- Where are the chat rooms?
- Why can't I get my AOL email in Outlook like I do with my office email account?
- You mean that if I quit using AOL I can't download or keep my old email?

AOL could have educated the masses - instead they appear to have dumbed them down.

Them's fightin' words.

SheepStar

 

[naisphoo]

Just like some people are passionate in their distaste for Best Buy, Bose, and Monster Cable, I hate AOL. Years ago when I tried to quit AOL, they just ignored me and kept debiting my charge card every month. Finally, I had to cancel the credit card just to get rid of them. And then they had the nerve to try to collect from me. They have to be the pimple on the hide of Time Warner. Why doesn't everybody just dump them?

I think that your experience with aol is not unique. it happened to me too...aol thief...A few years back I signed up for their 3 months free trial. Two months into it I wanted to cancel and they wouldn't let me do it. It turned out they already charged my wife's credit card. They didn't want to refund our money back. After countless phone calls and lenthy negociations, they finally agreed to let us cancel the trial period subscription. But they never gave our money back.