HIGH PRICE vs. Monthly Subscription

It's a bit of a tricky scenario, but you could implement a little bit of both (do a monthly membership, but with a fairly high price that works for everyone).

Something i read from Yaro Starak (well-known blogger with experience in membership sites) is to NOT create an indefinite membership. Create one that's meant to last only a few months, as this will make more users stay for the sake of "graduating" soon.

Some users who have been around for 4 months, for example, may be more inclined to stay if the membership is only meant to last 6 months. Meanwhile, be sure to send the occasional email encouraging them to stay by reminding them "how close" they're finally getting to that graduation date.

Plus, here's an idea I just had while typing this: Provide a special discount to those who stay until the very end. "Once you finish the course, we will transfer 10% of the total price back to your account."

Of course, take all of the above with a grain of salt since not every membership is created equal. I guess it just depends on what you're offering.

Simple answer you don't know when you are starting. If your product or service is good then people will renew the membership otherwise they won't. You will know in time..

You could offer both the options when starting and then pick the one that is the most choosen.

You can offer a single month subscription for a higher price while offering a discounted year or 6 months plan for a lower price.

Ex. Monthly Membership: 20$
12 Months Membership: 180$ (instead of 240$)

Ex. Monthly Membership: 20$
6 Months Membership: 90$ (instead of 120$)

Once you get outside the IM/MMO niches, it's common to see multiple tiered subscription prices.

Something like:

$20 per month

$180 per year (save $60)

$360 lifetime membership

From what I can tell, the trick to membership sites with long retention rates tends to be having something that isn't easy to switch away from. Many SaaS businesses run this way. Even if the service isn't ideal, it becomes a bigger hassle to switch than to deal with the shortcomings.

I've seen diet/fitness sites operate on a similar principle. Once you've spent a few months entering data in their programs, you don't want to switch out of fear of "losing" that data.

So I'm testing this right now actually.

I've started with a $37 per month recurring model where I offer a $1 three day trial for customers to see if it's for them.

So far in my first small test I've sent 300 people to the VSL and made 26 front end sales. only two people cancelled their trial and after the 3 days, only 1 person has refunded the charge.

Not bad at all for just a small sample. I was terrified of refunds and chargebacks but so far, all good.

Just do some small tests to gauge conversion rates and customers reactions to rebills. Go from there!

My next split test will be offering only a monthly option against offering a monthly OR cheaper annual price point.

Also once I know the average stick rate I'm thinking of trying this out...

If people stay 4 months on average, I'm going to grant lifetime access to members after 5 months... Trying to squeeze an extra month revenue out of them.

All you can do is small controlled tests and move forward based on sales data!

As customer view, they always like lifetime package, right? They want to buy a house instead of rent a house even buy a house is much more expensive

But some customers think that if they purchase lifetime package, they won't get the good support like subscription because seller always try their best to support them to prevent cancellation.

For me, support both of them is the best. You'll have mix purchasing and have more money and motivation to develop new things, right?

I can't say who or how but one of you clarified the answer I needed. I realized something about how the memberships work. Thanks.

test both..

that really is the best answer..

Test, you need to test always..

-Ike Paz

I hate monthly subscription so would prefer to pay a 'cheaper' annual fee but always best to give options so you have a better chance of getting memberships.

Just test and see. No one can give you the right answer without knowing more. Test and see what works for your business.

Cheers

My membership sites offer both, a monthly plan of $27/month, an annual option of $199 and a lifetime option of $399 (in one example). I get sales in all 3 - approximate distribution is 70/20/10 in terms of % who take each of the 3 offers.

I'm a big fan of giving people options as long as they are in-demand and straightforward.

Jeff

I prefer low time payment on longer time ( income stream ) instead of a one time payment

Automatic rebilling is a separate issue. I'm not against them, as long as the terms are plainly explained upfront - before the sale. One of the classiest subscriptions I've had went a step further. Starting about a week before the first rebill, I started getting daily emails reminding me that the subscription was about to renew for another month, and included a link to the cancellation page. Once I passed the first rebill, I still got monthly notices about a week ahead of time in the form of an invoice for the coming month.

I can also see how you could make the case for making the first month a one-time charge and requiring the buyer to subscribe to a monthly plan beyond that.

No-one can give any dependable advice without knowing what you are even selling.

It is understandable though why you haven't stated it and why indeed no-one has asked.

That's the compromise you've made which will yield only shots in the dark.

People might be contrasting chalk and cheese. A website subscription isn't the entity. It's the actual attractiveness and longevity applicable to the actual information contained within in.

Monthly membership is always good. You can also offer quarter, 6 months and yearly membership and lifetime membership. If you provide with value to your members they'll always stay. Some will leave and doesn't matter what you do. You can also test out some strategies for different payment plan. Thanks :-)

Offer both yearly and monthly.
Pretty standard I think, with the yearly option the incentivized deal, right? So your yearly sub is the "main" offer, and the monthly is effectively the "down sell." (both are offered upfront)

After 2 months, I'd pitch my monthlies another chance to buy the remainder of the year at a heavy discount. For those who purchased the yearly initially, I'd give it a couple months and offer them the lifetime.

Even if you have fantastic content, you will lose folks over time. Its just gonna happen. I have seen this model in many niches, and I think its ideal for two reasons:
1. Most $$$ money upfront; catches money from subs that were about to cancel
2. Allows you uncover and segment out those who will buy your higher priced products.

Best regards!