Quote:
Originally Posted by Far-L
Is there even one program here that is actually testing based on conversions and retention what the most profitable price point is?
Pretty much everything I saw was pure speculation as far as I could tell.
If you go by what you think the end user perceives in terms of price/value/prestige/quality then you are not listening to the numbers but what your own internal dialog believes to be true.
A $19.95 that rebills for 6 months with overall retention of 30% beats a $39.95 that only retains 10% for two months but the only way anyone would know that and adjust their pricing accordingly is if they tested first to make an educated guess, which is still 99% better than a hunch any day of the week.
And that doesn't even factor in the come back offer discounts, etc.
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Well you must've missed the part where I said I A-B test everything. LOL But that's okay, I missed the part where you said I was awesome and your #1 inspiration. :D
Just kidding. But I did test differant price points and concerning rebills I found that no matter how low I dropped the rebill price the buying pattern for MY customers was almost always a 2-3 month rebill cycle. We had one period 3 years ago where rebills lasted 3-4 months but that's gone now, with even more in the Members Area and 3x the number of websites to the network.
When I raised the rebill price $5 however I actually saw an increase in rebills! The other issue, for my company, is I do splits with partners and affiliates so lowering prices makes the pie much smaller. If my traffic were 3x-4x what it is now maybe I would try that $19.95 price point. LOL