Dropping Prices on Pay Sites?

[Hooper]

imho cheap sites just get bargain hunters. how much is a single adult dvd? isnt it something like 30 or 40 bucks at the local xxx news stand?

if you provide good high quality content you should charge for it.

if i have 100 members buying a trial at 2.99 (100*2.99 = $2.99).. 35% recur to full memberships (35*$39.95 = $1398)... and 50% of those 35% recur for 1 more month (17.5*$39.95 = $699.13) and 50% of the remaining recur for 1 more month (8.75*$39.95 = 349.56) you've made a grand total of 3095.25 off of 100 2.99 signups for a total revenue of 30.95 per signup.

Now if you assume that a 2.99 trial will sell better than a 9.95 flat signup.. (you have to. the difference is tremendous in my experience... assume that it converts about twice as well at 2.99 for the initial purchase) so 100 trial joins is equivalent to 50 9.95 flat joins... you now have to make $61.90 off of every member to match the 2.99 trial... which means you HAVE to have an average retention of 6.2 months.

Is 6.2 months possible? Sure. We have people we've been billing for 3 years... but even at 9.95 a 6.2 month AVERAGE retention is extremely optimistic while those trial join numbers are actually fairly pessimistic.

I'd rather have my money now than try and hope for lengthy retention.

Just my 2cents, take it for what it's worth.