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What Seems More Profitable?

Discussion in 'BlackHat Lounge' started by SpellZ, May 6, 2011.

  1. SpellZ

    SpellZ Regular Member

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    A) A one time fee of $97
    B) $9/month

    There is a positive and a negative to both options in my opinion, but I want to hear from you guys... What option would be better?

    With this option, you pay, and you get inside a website that has tons of pictures that relate to the content, it has an application (non-mobile, but a web-app) that is REALLY helpful to the target market.

    The current product which has direct relation to me is selling for $34.95 as a one time fee, but it is a downloadable software and only for PC, plus they don't offer any extras (reports, 5000 pictures of material related to the product, etc).
     
  2. Virus1

    Virus1 Supreme Member

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    for me.... i would price at $9 a month...

    I could get 1000 people to sign up to something of value for $9 a month
    while in the same effort could only get 100 people to sign up for $97 one time fee.
    which is about the same money....BUT...
    the thing would be that NEXT months... i would do nothing and 80% of them would auto renew.....that is when the benefits comes....
     
  3. Autumn

    Autumn Elite Member

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    I'd go for $97 one time. If it's worth it to the target market, they'll pay.

    At the same conversion ratio, you'd have to get 10-11 months of rebills out of the customer to get the same revenue from $9 a month, and I doubt it would convert 10x better than the $97 option. Playing around with a higher monthly fee could be an option.
     
  4. SpellZ

    SpellZ Regular Member

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    Yeah, so right now I am sorta stuck in a pickle on what to do?

    Go from $9/month to ...... $17/month?
    Or just do the $97/month?

    No clue... Any other help would be great! :)
     
  5. Autumn

    Autumn Elite Member

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    The only way you're going to find out is to test. There are too many variables for a straight answer: your niche, your product, the competition, the value of the product to your customers, the particular stream of traffic you end up getting, the ability of your processor to run rebills, etc etc.

    Try starting off with your one time $97 offer to get a baseline, and then run several thousand clicks for each rebill price point, going from cheap to more expensive.

    You will immediately see the effects of price on conversions, and a couple of months down the track you will see the effect on total revenue, once you can determine how long people rebill at each price point.

    Conversions rarely have a linear relationship to prices.
     
  6. Chrisss

    Chrisss Senior Member

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    I personally prefer a one time fee.

    But you might get some more money if your monthly fee is reoccurring automatically until people manually unsubscribe. Simply because a lot of people tend to forget to unsubscribe!
     
  7. Autumn

    Autumn Elite Member

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    Another thing to consider is that offering people different payment methods can improve conversions.

    For example, the original creators of rebilling on the internet was of course porn sites. However, many people have become wary of rebilling offers after getting stung themselves or hearing horror stories about unending shady rebills.

    A lot of porn sites now offer fixed one time payment methods (eg. 90 days for $90) with no rebill and a significant number of surfers sign up for these fixed term, one off offers, whereas they might refuse to sign up to a rebilling offer for the same product.

    However, it takes time and a lot of traffic to work out which is the most profitable.
     
  8. MojPoj

    MojPoj Guest

    9 a month, never know how long something will be good for, especially in this realm.
     
  9. phatzilla

    phatzilla Supreme Member

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    I'd definitely go for the 97$, you'd have to have the customer for 10 whole months in order to beat the one-time fee. Do you see them lasting that long?
     
  10. Chronos

    Chronos Junior Member

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    You could always do a 50/50.

    $50 to get in, 5$ a month after that.
     
  11. SpellZ

    SpellZ Regular Member

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    Thanks a lot guys!
    Wow! I'm getting mixed responses, a 50/50 for A or B, shooot lol....
     
  12. SpellZ

    SpellZ Regular Member

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    Okay, so after PMs back and forth, the FIRST-FINAL idea (before split testing) is...

    $57 OTF + $3/month

    What do you guys think about that?