Dropping Prices on Pay Sites?

[cj]

Originally posted by Serge_Oprano@May 13 2003, 10:15 AM
Dianna,
if you don't run affiliate program,
I suggest $9.95 membership, as they recur FOREVER,
well known fenomena.

this is a good theory, however to get the equivalent $$ in your pocket, you have to get at least 3 months out of this member to make back $29.95 ... on a $29.95 charge, the odds of getting someone to stay for 1 month at 29.95 are higher than getting someone to stay for 3 months at 9.95 ...

BUT, if the 9.95 member stays that long they will stay for ever ... then you have to decide if you'd prefer a 6 month member at 9.95 or a 2 month member at 29.95

Dianna, we've had great success using a step down billing model

$29.95 first month, 9.95 per month after that ... the ONLY market it helps you with is those who WANT to stay a member, or those who have cancelled due to the price.

Offer a different pricing point to your members after they cancel & as an ad on your exits ... 'thanks for your loyalty, here's a cheaper way to sign up'

dropping the price will NOT guarantee you more transactions, at the end of the day, that's the only relevant factor.

Also, about pop-ups we had some there on exit but we got a shit load of complaints from members.

tell those members who complain you'll be happy to remove the consoles but the price of their membership will go up to cover your losses. members don't run your site, you do, they will always complain over popups - TOO BAD.