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Making the Donation Model Work (on an existing $$$ product)

by Mirnova
3 replies
Hey,

I have this product. It is selling well (even at a $297 price point). But I want to give it away for free and hopefully make up at least half of what I'm making now on the backend in user donations...

See, in my humble opinion, this is the very best info product in its category...10 years in the making. Lots of sweat and blood to create it.... and it simply delivers!

And clients are happy with it. We have a free trial running, and over 90% conversion from that free trial to paid clients.

But, I feel a little guilty charging for it...

Why?

Because it's in a niche where someone is feeling deep, urgent pain. This products alleviates the pain. But not all those suffering have the money to get it. I mean, if you had the cure for cancer would you charge for it to a kid dying of cancer?

I really would like to give it to everyone free. And ask for a donation from those who appreciate what it did for them. Hopefully those with money would donate for the value they get. Those that don't have the money would still get the info they need.

Hopefully we could structure a donation request in such a way that we could make enough to keep the thing going.... be able to pay expenses.... pay for advertising.... and hopefully make at least half of what we are making now.

Has anyone made this kind of donation model work?

Any advise? Or examples we could model?

Thanks,

P.S. Others have paid a pretty penny for the product. I don't want to piss them all off if we start offering it for free. Any ideas on how to handle this?
#$$$ #donation #donations #existing #making #model #paypal donations #product #work
  • Profile picture of the author nobita436
    Donations should be considered as the wish of someone.
    If anyone want to donate regarding the cause then it's completely okey otherwise some changes should be made.
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  • Profile picture of the author Mirnova
    Yes, I know...

    I would like to think that users out of the goodness of their heart would donate after seeing the results the product gives them.

    But, I'm not so sure... what are the triggers that really makes people donate?

    And giving a way a product for free, I imagine the usage will drop too. So will the perceived value if it's not done right.

    Are there any proven, existing models for donation we could emulate?
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  • Profile picture of the author The Marketeer
    To address your concerns, I've seen several donation type pricing models being used. What you could do is to test out a range of pricing models for e.g.

    Survey your visitors using a short questionnaire on your home page. After the sales copy and explaining the value of your product, ask them what payment method would they prefer:

    a) A one-off payment.
    b) A lower one-off payment.
    c) A monthly subscription or payment plan that would enable them to spread the payments (this way many could afford it).
    d) A choice of price points offered at checkout (pick your own price).
    e) A donation of their choice.

    This way you'd get a better idea and you're offering a price point to suit all budgets. However this type of varied pricing model would only work if you're able to bear any potential losses that might occur should the model be abused.
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