More bottom line: the lower the price point the more traffic and volume you need to be successful.
This "I'd rather have 100 people pay a dollar than 3 people pay $35' or whatever is bullshit. Do you realistically think it's easier to get 100 people to open their wallets then it is to get THREE people to do so?
Perception is everything. The lower the price the more people will think it's cheap and therefore ok to steal. NEVER devalue your product. Just look at the music biz with their $0.99 downloads and see where they are now (as compared to twenty years ago).
Lots of good advice in here but remember WHY you are doing this: to make MONEY. So sell something where you might actually make MONEY selling it. At $9.95 the pie is too small for anyone to get fat on.
Offer one-time only, offer recurring and offer long-term options. Then spend the rest of your time A-B testing and getting TRAFFIC to the site. Nothing else should matter right now but TRAFFIC.
Good luck man!!
