I have a subscription based website that people pay to use. They have a username & password. Some of them have paid for the service until March 2008. I want to make the website free but I am concerned about the people that have already paid. I want to fulfill my obligations to them but how am I obligated to them? Do I need to keep the website subscription based until all subscriptions expire? With a username & password? I can't give their money back to them. Even though it will now be free the paid subscribers will still be getting the service they paid for. But going forward it will be free to them and anyone else that wants to come to my website. I'm wondering about the legal ramifications. I hope I have been clear. Thanks.
I don't know what the legalities are (that would probably depend on what you told them when you sold the subscriptions, your terms of service and other stuff), but I know that I would be pissed if a site I paid to access became free to everyone. Maybe you could have some kind of special area just for subscribers with bonuses or gifts.
Thanks for the reply, Nonny. I would be mad, too if I had just paid for a subscription and now it's free. My first thought was to phase the subscriptions out and have no one pay any further than March 2008. I feel this may hurt my opportunities but may hurt me the other way as well, too. I want to do what's right morally as well as legally. I don't really know of any gifts or bonuses to offer or if they would even be interested. Hopefully more people will reply and I can decide what is best.
Legally, you probably don't have to refund their money, however, you should count on most of those people being ticked off and probably lose them as visitors. It will probably be even more of a problem if visitors are allowed to post (you don't want a bunch of negative comments). I would refund their money, or as suggested, leave up an area that is password protected that only paid members can access. There are forums that have free access and then special areas where only paid members can post.
Another idea similar to the special paid bonus section: Figure out how much you would refund them if you could. Then get everyone a gift with a value* around that number (preferably higher) and give it to them. Explain why, but be sure to present it as a win-win for everyone. Then you can quit the paid plans all at once. *The gift doesn't have to cost you a lot, it just has to have a high perceived value.
Thanks for all the replies. I've decided to wait until all the subscriptions expire and then I'll make the website free. I'm very impatient but I think it is the right thing to do.