Far-L

We test a variety of sale points and our affiliates have the flexibility to set their own pricing. The only companies that can and will succeed with the low price points are those with the ability to retain customers, obviously. Testing is the only way to determine what is best because intuition or anything else will be proven insufficient.

Years ago we tested a low price and found that it created a value perception problem. People apparently wanted to pay more since it seemed like better quality if it was at a higher price, which ran counter to our assumptions. However, nowadays is another story of course when it comes to content. I think the consumer wants "safe" content, would prefer something like Netflix over illegally downloading for free, etc... but only at a price that works.

The other consideration in this equation is how to attract affiliates with payouts based on low fee memberships. We overcome this by allowing the affiliate to set the price and type of trial. If they want a PPS style payout up front, they can do that. If they want recurring and a payment percentage based on a higher or lower price to earn an average of (x), (y), or (z) per sign up/recurring transaction then we give them that ability to test what works best for their traffic. Seemed to us the only way to make it work for everyone.

__________________