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Old 03-03-2016, 03:24 PM  
Sly
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Join Date: Sep 2004
Location: Austin, TX
Posts: 31,289
Do you have enough content to keep the average member rebilling long enough that it would match or beat your revenue if you sold as a flat fee?

Will either billing model sell at a conversion rate high enough to match or beat the other?

You need to test this. It's the only way. Everything else is just guessing. This is going to be a lot of work, but it will pay off if you do the test right. Create 2 services to use as your testing ground. One is flat, one is subscription. See which one has the best conversion rate.

If your subscription service has the better conversion rate, do the math and estimate how many months you need to keep a member in order to make the exact same amount of money that you would have made if they bought flat.

If the flat service has the better conversion rate, do the math and estimate if the one time flat fee plus additional sales (you better be upselling) will make you more or less money then the subscription service.

This is all math and testing. If you care about this, don't leave it up to guessing and recommendations from others because those others have not done the testing. Do the math. Do the tests.
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