Unusual pricing problem...

jakobh · 11-03-2009, 08:07 AM

Hi,

I run a membership site which is a mix of a sort of content library and social network.

I do want to use a recurring billing pricing model because the site has proven to get people "hooked" once they're in.

For that reason I want to get as many people as possible "in the door" in order for me to collect the recurring monthly charges. The problem is, due to the nature of the site, I feel the need to charge a fairly high sign-up fee or otherwise I:

1. Lose the sign-up fee
2. Risk getting a lot of new members that simply just "grab and go" because the higher sign-up fee isn't there anymore

Right now the price is $19.95 (sign-up fee) + $9.95 a month. I would like to be able to get more people in the door by offering some kind of trial offer, for example a 7-day $1 trial (with restricted access?), but then I lose the sign-up fee, because $1 + $19.95 after 7 days + $9.95 a month is way to complicated.

I don't know if any of the above makes any sense at all to you, but I'd like to know if any of you can come up with an inventive pricing model that I for some reason haven't though of. For your info: $9.95 is the maximum monthly rate I can charge without sacrificing the retention rate too much.

Any feedback is highly appreciated. Thanks!

jakobh · 11-03-2009, 08:23 AM

Do you think access to a limited part of the "library" content as a front-end offer and then membership to a second site (the current site) that contains the rest of the library content + social networking as a 1-click offer would be a good idea?

That would be equal the current $19.95 + $9.95 ($9.95 for front-end offer + $9.95 a month for 1-click) but I think it might be easier to get people into the funnel.

David Wolfman · 11-03-2009, 11:24 AM

Ask your users - form a survey, and give them incentive for honest answer. They will tell you everything you need to know, they know the best how much this info is worth for them and what sort of investment they're ready to make to access your stuff.

If your products are really good tey may suggest that they would even pay a premium to get it.

11-03-2009, 08:07 AM	#1
jakobh Active Warrior War Room Member Join Date: Jun 2007 Location: , , . Posts: 30 Thanks: 0 Thanked 0 Times in 0 Posts	Unusual pricing problem... Hi, I run a membership site which is a mix of a sort of content library and social network. I do want to use a recurring billing pricing model because the site has proven to get people "hooked" once they're in. For that reason I want to get as many people as possible "in the door" in order for me to collect the recurring monthly charges. The problem is, due to the nature of the site, I feel the need to charge a fairly high sign-up fee or otherwise I: 1. Lose the sign-up fee 2. Risk getting a lot of new members that simply just "grab and go" because the higher sign-up fee isn't there anymore Right now the price is $19.95 (sign-up fee) + $9.95 a month. I would like to be able to get more people in the door by offering some kind of trial offer, for example a 7-day $1 trial (with restricted access?), but then I lose the sign-up fee, because $1 + $19.95 after 7 days + $9.95 a month is way to complicated. I don't know if any of the above makes any sense at all to you, but I'd like to know if any of you can come up with an inventive pricing model that I for some reason haven't though of. For your info: $9.95 is the maximum monthly rate I can charge without sacrificing the retention rate too much. Any feedback is highly appreciated. Thanks!

11-03-2009, 08:23 AM	#2
jakobh Active Warrior War Room Member Join Date: Jun 2007 Location: , , . Posts: 30 Thanks: 0 Thanked 0 Times in 0 Posts	Re: Unusual pricing problem... Do you think access to a limited part of the "library" content as a front-end offer and then membership to a second site (the current site) that contains the rest of the library content + social networking as a 1-click offer would be a good idea? That would be equal the current $19.95 + $9.95 ($9.95 for front-end offer + $9.95 a month for 1-click) but I think it might be easier to get people into the funnel.

11-03-2009, 11:24 AM	#3
David Wolfman HyperActive Warrior War Room Member Join Date: Oct 2009 Location: Midlands, UK Posts: 206 Thanks: 14 Thanked 16 Times in 16 Posts	Re: Unusual pricing problem... Ask your users - form a survey, and give them incentive for honest answer. They will tell you everything you need to know, they know the best how much this info is worth for them and what sort of investment they're ready to make to access your stuff. If your products are really good tey may suggest that they would even pay a premium to get it.
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