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Has anyone tested this for member retention

by Ron Douglas
10 replies
I've had success with $1 trials and free trials, but a good percentage always drop out before they're charged. It doesn't matter how good your stuff is, the deadline to drop out before being charged is too tempting to resist for many people. Even if they're getting a life changing product, people are too motivated to drop out before being billed.

I'm thinking about going the opposite direction as a test:

Have a premium fee to join and then a low monthly fee to continue. For example - charge $57 for the first month and then like $17 a month to continue. If you drop out, you have to pay the $57 initial fee again to rejoin.

Obviously you'd get less new members upfront but the thought is that this will weed out the tire kickers and leave you with longer term members. In comparison to the initial fee, the $17 doesn't seem like a lot. Plus, you can give more of your good stuff upfront as an incentive for people to join.

Has anyone here tested this?
#member #retention #tested
  • Profile picture of the author James Foster
    It's a new idea to me Ron, so I naturally haven't tested it... but I like it!

    It would be fun to write copy for a product like that.

    Spend a lot of time building them up, giving them situations that make them feel they are super awesome, then throwing them the pitch with "only the people who truly believe they are super awesome will see just how valuable this is"
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    • Profile picture of the author CityTiger
      I like the idea a lot and think it could definately work.

      However I like the idea of charging people a fee to drop out. Perhaps if the initial fee was the same as the normal monthly charge but there was a higher 'penalty' fee but even then charging someone to cancel is questionable in my books.

      I would stick with the initial fee + monthly billing but just make sure the content is so good people wont drop out. Once they have paid the initial fee they are more then likely to give it at least a month or two before even considering dropping out.
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      Please stop making self-promotional posts in the main discussion forums.
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  • Profile picture of the author globalpro
    Ron,

    I have clients using both methods and the results are mixed. I think from looking at their sales that the second method seems to work better. Get the ones that are serious upfront.

    The $1 trial usually runs for 7 days.

    Thanks,

    John
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  • Profile picture of the author George Wright
    How about having a killer free area and let them stay there even if they cancel their paid area. Every Time they sign into the free area to pick up the latest goodies and perhaps even chat on your forum with you and others they constantly see there is another area they are missing.

    Like the "Sponsor" area here on the WF. Some will join and drop off and join again if Allen allows that.

    Anyway, every time I sign in here I remember what I'm missing and will join soon.

    Going way back, it cost $49.95 to join the Warriors. Then $37 to join the War Room and now $25 a month to be a sponsor. All the while $20 and now $40 to run ads here. Nice model if you ask me.

    George Wright
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    "The first chapter sells the book; the last chapter sells the next book." Mickey Spillane
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  • Profile picture of the author Andy Fletcher
    In my experience high sign up, low monthly fees work best for the players at the top end of the market, with the best content but only when they have a real edge over the competition.

    In the poker market Cardrunners.com is by far and away the best regarded site. They were first to market, had/have the best pros on there and they have the biggest video library of anyone (by a long way). They use this to justify a $100 sign up fee, then $30 a month. The $100 sign up fee is waived on the 12 month package.

    In the adult entertainment market (yes people that's porn) it's such a commodity that even the biggest sites in any subniche just don't have enough of an edge to justify it. The best sites are able to justify slightly higher monthly fees for their premium content but it's not sufficiently better that someone will pay an extra 3 months sign up fee on top of the monthly.
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  • Profile picture of the author fated82
    Aren't you making it harder for people to join?
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  • Profile picture of the author rkz0121
    This does seem like a really good idea, however you want to be careful of discouraging people from the start.
    I guess the only way to see if it's any good is to test it out, try an A/B split test or something?
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