Theres three down sides to asking for too much info. It keeps the web designer from receiving real data from the user due to the length of the paper. When asking for too much info, a lot less forms are turned in. When a web site ask for too much info, it makes the web designers look bad.
Showing the value of what your going to receive in exchange of the info is the proper way to do this. Tell the audience exactly what they're gonna get. Don't leave them hanging and wondering why they are filling this form out. State the value of the form right away!
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