Quote:
Originally Posted by thommy
when i still owned paysites I had a very nice model that worked pretty good.
The membership started at 39,95 and went down every month 5 euro til it endet at 9,95
The lifetime value I had than was pretty much higher as constant high price or constant low price.
1. point is that you have to see the price from the view of a user. When he joins everything is new for him and he gets most value for his money.
2. This leads also to the fact that some users are joining for a month, unsubscribe and come back after 1 year when they expect again a lot of new content.
3. There are also users that unsubscribe in holiday times or for other reasons when they do not have that much time to surf.
4. As my model always started with the high price (even for returning members) people was calculating this and did not temporarily cancel to keep the lower price.
I think this system is not only smarter it is also much fairer than a constant price because no membersarea is changing the complete content in a month and from the view of a user it means that he pays the same for less in the next few months.
We also know all that the usage of a longterm member is much lower than the usage from a new user and this fact is felt by the user also.
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That is very interesting Thommy!! I never heard of this pricing structure before but I like it.
I am currently converting my out-dated Members Areas with Elevated X so I can rotate content, schedule updates, etc. I am hoping this alone affects rebills.
But doing what you say - and given the new, better CMS coming - the move might be to raise the initial price to $39.95 and then reduce by $5 each month as you say.
However:
1. How do you advertise this so the new Member understands it right away?
2. How do you deal with yearly options?
Right now I found a mix of recurring and non-recurring works best. I have two of each so four options total.