Oh yes, we may have just seen the first nail in the coffin of AOL. The company was fined $1.25 million by the State of New York due to complaints from users about how absurdly difficult it is to cancel the service after signing up. While the $1.25 million looks like a large amount, this is really chump change for the very large America Online. What will hurt them though, is the fact that they will be refining their procedures for handling customer cancellations. Up until now, service agents received bonuses if they had a 50% or better retention rate - some agents made tens of thousands of dollars on this program alone. The new program will no longer have a minimum quota. You can probably say goodbye to the “if you stay, I will give you another free three months” spiel.

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