Playing with price points for XoXoLeah.com
 

So, currently experimenting with pricing on the new launch of XoXoleah.com!

At 19.99 it was doing a couple sales per day. Left it there for 2 weeks. Moved it (limited time only) to 9.99 and getting more than double the sales.

Im curious of any advice, thoughts, ideas, etc on pricing. Its obvious right now cutting the price in half and getting more than 2x the sales means its more profitable. Should I keep it there for the long term? Try an in between price? What type of durations should be tested? Any thoughts are appreciated. I guess I'm asking for methods to test price points.

http://www.xoxoleah.com/samples/18.jpg

Don't be afraid to try $1.00/$1.99 trials on mobile/tablet tours. It's easier to get 100 people to spend 1$ than to get 5 people to spend $20.00. Like you're doing it's all about testing what works with your traffic.

I am scared to try that! lol. People rip the content then gone. But maybe its something I need to just try.

Note she said Mobile. Less likely to happen so might be worth the try.

A/B test the landing pages and go with the price point that generates the most revenue per visitor.

Respectfully disagree. If people are willing to enter their credit card on a porn site, the price point isn't as much of a deciding factor.

I'd also try $29.95 and see how that affects sales :pimp

:thumbsup:thumbsup That's why threads like this are great when the right people chime in ;) I have some clients doing very well with that model and others that don't and do better with a higher pricing model. The only real way to find out what works is testing, testing, testing. Change the call to actions colors. Underline them. Make them blue make them green make them bold center them. Make them roll over etc... One thing I see on a lot of peoples mobile/tablet tours is they use generic wording like "Click Here Now" instead of "Tap Here To Join" etc... Everyone has different sources of traffic and the key is finding that landing page or tour along with the correct pricing point that dials in the best results for you.

Well I did try that and the results were terrible. In theory you are correct but for my sites it's a disaster....


Example: $1 for 1 day, converts to $29.95 monthly. Had this option up for ten days on my top 8 sites.

Results: 3 joins for $1, all 3 converted to full memberships. One refunded two days later.

Form hits: 1,026

Yes you read that right. Over a THOUSAND hits to the $1 join form produced 3 sales.

200 form hits to my best site = 1 sale.

Theory: When people click the form they see join for $1 then converts to $29.95. Bad. But only let them have access for one day? Then Membership expires?

I HATE discounting my product and the above is the reason why. So I took off the $1joins today. :)

Also, in case you are wondering, the 'regular' sales stayed the same, no difference.

I actually started at 29.99 and sales were noticeably lower. I agree testing is really the only way to know for the specific product Im pushing. Great advice in here. Really need to look into the method to have the price point only appear on mobile for the lesser cost transaction of say 1.99 for 1 day or 3 days.

Have any of you used VWO for testing? Its a good product for testing - used it on my other project. Need to dive back in and get some paths and split tests created for XoXoLeah.com

It does seem like for a lot of niche sites the days of $29.99 - formerly a standard of sorts - are over. I've heard from a lot of folks that $10-$20 is the sweet spot depending, tho it breaks my heart to go low as $9.95.

Anyone who tells you the "right way", isn't the sharpest tool in the shed. There are some basic ranges to play in, but the only thing you need to do is.....

A - B TEST

Every site is different. Every traffic source will preform differently with different packages and price points.

Agreed about the testing. Still wanted to hear some feedback and thoughts on it. There's a big diff between 1 buck w no recurring amount in x days vs 1 buck with no recurring fee.

Trust your gut felling man, don't sell your soul. People will download a much as possible for that $1, I wouldn't even do that for mobile users. Also make sure you have protection like proxypass.com :2 cents:

These days many will join then cancel.

So who cares if you get 100 people paying $1. By the time you get that $1 it will be next to nothing (after costs).

If your going to just give it away, then give it away free and put adverts on your site.

In the UK a drinks firm was not selling. They went to an advertising agent who said increase your price (yes increase it). Sales shot up. Why? People presumed the higher price = quality.

Give more options. I still get people joining for 49.95 for six months. Just toss a long term membership that does not rebill in for a high amount. 79.95/year or something like that.

If you are making roughly the same at 9.95 vs 19.95 id go with the higher price point simply because less support and less theft

I agree. At 9.99 right now, I do have a 90 day at 24.99 non recurring. Perhaps more options the better though? I only have 2 options, maybe getting 3-4 is more par for the course.

With the disclaimer as mentioned here that all sites & traffic are different, I've found that around 4 options are ideal for my own stuff.

The standard month-to-month renewing subscription is a base.

But some people also *really* like non rebilling memberships - for me when I test a set of non-rebilling memberships against rebilling ones that are actually lower price, the former perform better. And if I offer *only* rebilling options with no single ones, sales go way down.

So I offer single-shot memberships in 3, 6, and 12 month increments.

You'd be surprised at how many go for that annual one. Then when that expires a large % of them will manually signup for another go-round at the sale price listed in my expiration email. Those are the guys who are happy to be lifers if the price is right & content keeps coming (which is another issue entirely).

Long story short, give a few options with a mixture of rebilling & non-rebilling, but nothing too complex - they should be able to digest all those options and the relative price merits (avg per month) within a few seconds.

This is what works for me anyhow, tested over many years & thousands of signups, and I think it's a pretty good rule of thumb for smaller niche sites that don't have the layering of a big network to fall back on. YMMV of course.

If you wanted to tell a long story short, or just say cliff notes:
You could've just said the above in the first place. :)
:upsidedow :pimp

at 9.95 you're not leaving much buffer room for affiliates, holiday promos, etc.

We saw an uptick in sales when we offered more options, we also get a number of sales that are non-recurring at $10 more a month, our normal monthly is $24.99 but the non-recurring is $34.99 you'd think that they would just signup and then cancel and save the 10 bucks but we get about 10% that don't :)

Good to hear some longtime sites can still sell at $35/month. For too many years the trend has been surfers demanding more from their membership sites & willing to pay less and less for it.

Yup, this.

If you really really want $9.95 as your target, at the very least you should list the "regular" price at $12.95 or $14.95 but have it on perpetual sale.

To get sign ups is important. The whole idea of the business model.

But, retention is also a factor here, since you offer affiliates rev share and we all know how a recurring member can stay on for a long time. The thing that really matters over time is value per member, how much deos each one pull in?

Since your content bank is limited, I would set it up with some starting price point, say $19.95 monthly to start. You make sure to not give all content at once but drip feed it to members depending on the length of their membership. After a time period price goes down to $9.95 and here maybe offer them to upgrade to the network site "and friends" for $14.95 or $19.95 something or they can stay with just Leah at $9.95.

21Sextury does something like that, with lowering the price after a certain time to get members to stay on longer.

Very true. Right now sales are moving a lot better at 9.99, but would like to get it higher for sure. Going to bump it soon.

I like the idea of the more options the better, but not too many where the user has to pull out a calculator to figure out their decision. : )

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!! :)

Thanks for the feedback.

Remember some users stay for months if content is constantly updated. Try different choices in the payment form.

:thumbsup