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Are Paysite Prices Too Cheap?
For years the thinking was lower your monthly subscription price thus making the purchase easier for more people to make. Keeping the price low also meant Members may overlook such a small charge and rebill forever.
Times change tho - and prices for everything have skyrocketed except for paysites! Last time I checked the cost for video production, server costs and overall operational costs have not gone down yet paysite pricing options have stagnated. Why?
Coming from the music industry I saw firsthand the effects of de-vauling your product. Apple iTunes came along and trained everyone to value a single song at $0.99. So instead of buying an entire physical CD or vinyl album at $8-15 people just paid a dollar for the song they wanted (or worse, downloaded it for free thinking it's so cheap what's the harm?). These days with Spotify the cost to consumer is even less. Any wonder then why the music industry is almost completely dead?
Has anyone played around with their pricing options, making them higher and seeing the overall gain or loss? My experience is that if someone is motivated to buy they will do so as long as the price is 'reasonable'. Those on the fence will probably stay with inferior free clips on tube sites.
Example: $119.00 for an entire year vs. $29.95 monthly recurring. The yearly option is a $240 savings or 1/3 the cost of the monthly recurring. WTF? Time to raise prices. What say you?
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