I had a contract with a telecom operator. I sold my unit, a new contract was created for the new owner, yet the telecom company kept charging me. When I investigated, I found out they had already suspended my services, but the fees kept accumulating. When I called to cancel, they hit me with four months of charges for nothing—plus a two-month early termination fee.
It got me thinking—is this a sustainable business model? It left a bitter taste, much like those developers who once made more on late fees than actual sales. They milked customers dry—until customers left, and the businesses collapsed.
Lesson? Don’t take customers for fools. If you do, your business won’t be around for long. And history proves it.
The Business Failures Hall of Shame
Blockbuster: Late Fees Were More Important Than Customers
Blockbuster was once the king of movie rentals—until they got too greedy. Their massive late fees made them millions but also made customers hate them.
Then came Netflix, which said, “No late fees, watch from home.” Blockbuster had the chance to buy Netflix for $50 million and laughed them off. A few years later, Blockbuster was bankrupt, and Netflix became a streaming empire.
Motorola & BlackBerry BBM: Stubbornness Killed the Giants
Motorola, BlackBerry, and Nokia were once the biggest names in mobile phones. Then Apple and Samsung introduced touchscreens, better software, and a focus on user experience.
What did these giants do? They refused to change.
- Motorola stuck to flip phones like it was 2005 forever.
- BlackBerry clung to tiny keyboards while customers wanted sleek touchscreens.
- BlackBerry had BBM (BlackBerry Messenger), the world’s first great messaging app—but they refused to make it available outside BlackBerry devices.
Meanwhile, WhatsApp and iMessage gave users free messaging across all phones. Customers moved on, and BlackBerry became a relic.
Myspace: From King of Social Media to Irrelevance
Before Facebook, Myspace ruled social media. Then it got greedy.
- Too many ads made it unbearable.
- Spam and poor security drove users away.
- A messy interface made Facebook’s clean design look like a dream.
Facebook focused on user experience, while Myspace focused on squeezing every dollar out of customers. The result? Myspace is now a digital graveyard.
Sears & Toys “R” Us: The Retail Dinosaurs That Refused to Evolve
Sears and Toys “R” Us were once household names. But as Amazon and Walmart revolutionized retail, these companies thought they were too big to fail.
Instead of adapting, they:
- Kept their outdated business models.
- Let stores become uninviting and overpriced.
- Ignored the rise of e-commerce.
Customers wanted convenience, better pricing, and online shopping. Amazon delivered, and Sears and Toys “R” Us disappeared.
MoviePass: A Brilliant Idea That Lied to Customers
MoviePass offered unlimited movie tickets for $9.99/month. Sounds amazing, right? Too amazing.
Once too many customers signed up, MoviePass panicked and changed the rules. Suddenly:
- Users couldn’t watch certain movies.
- Restrictions popped up without warning.
- Some accounts were randomly blocked from buying tickets.
Customers felt scammed and left. By 2019, MoviePass was bankrupt.
WeWork: The Billion-Dollar Fantasy That Crashed
WeWork promised to revolutionize office spaces with trendy coworking environments. Instead, it turned into a cash-burning disaster thanks to:
- Overhyped promises and unrealistic valuations.
- Unfavorable lease agreements that locked in customers.
- A reckless CEO (Adam Neumann) who spent billions on nonsense.
Investors lost faith, customers got stuck in bad contracts, and by 2023, WeWork was bankrupt.
The Power Has Shifted: Customers Now Hold the Cards
There was a time when businesses could get away with anything. Not anymore. TripAdvisor, Google Reviews, and social media have flipped the script.
Now, if a hotel promises a sea-view room, it had better actually have a sea view—or customers will expose the lie online.
- Bad airline service? One viral post can destroy reputation and sales.
- A misleading product? Negative reviews will bury it.
- Hidden fees? Customers will warn each other instantly.
Businesses that mistreat customers today don’t just lose a sale; they lose their entire reputation.
Money follows happy customers. The companies that forget this end up like Blockbuster, Nokia, Myspace, and every other business that thought customers wouldn’t notice.
So, to every telecom provider, developer, and business out there: Play the long game. Respect your customers. Or prepare to be the next cautionary tale.
About the Author
Hamzah Abu Zannad is the co-founder and managing director of Axiom Prime Real Estate Development, a visionary firm redefining luxury living in Dubai. With over 20 years in the industry, he has been at the forefront of introducing sustainable, community-driven developments. Under his leadership, Axiom Prime has delivered Dutch-inspired, high-end residential projects in Jumeirah Village Triangle and Jumeirah Garden City (Satwa), blending innovation with a strong sense of belonging.
For more information, visit axiomprime.ae.
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