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One Time Fee or Monthly Fee?

by fated82
25 replies
I am planning to create a video series and was wondering which payment option is the best fit.

Should I opt for a one time fee of say $497 or a monthly fee of $39.

Both options allow me to give my subscribers a video tutorial a month for 12 months.

What is the Pros and Cons of either options?
#fee #monthly #time
  • Profile picture of the author Michael Shook
    With a one time fee, you won't get as many people signing up, but with a monthly fee you can't pretty much count on 3 months fees. And then people will start to drop out.
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  • Profile picture of the author JRJWrites
    Why not offer both and let them choose? Give a slight discount for the one-time fee.
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    • Profile picture of the author highincome
      Originally Posted by jrjohn View Post

      Why not offer both and let them choose? Give a slight discount for the one-time fee.
      This is a good idea to offer both. I think offering the monthly fee is good because it's a recurring income for you and also more easily affordable to people.

      But offering a discount for the one time price will provide more incentive for people who prefer to pay a one time fee and not be charged month after month.
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  • Profile picture of the author gozlukcuamca
    Originally Posted by fated82 View Post

    I am planning to create a video series and was wondering which payment option is the best fit.

    Should I opt for a one time fee of say $497 or a monthly fee of $39.

    Both options allow me to give my subscribers a video tutorial a month for 12 months.

    What is the Pros and Cons of either options?
    I think for the first time you should try the one time fee. if u like it you can continue with monthly payment
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  • Profile picture of the author H.Miller
    I think you should offer both options. Some people may want to pay for the entire year upfront while others may want to pay on a monthly basis.
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  • Profile picture of the author Aveiur
    The monthly fee will make the product appear cheaper and more affordable.
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  • Profile picture of the author shahidali788
    Monthly subscription will be a better option as that does not seems a lot.

    or you can enable both option. for example

    option one >> $37 per month
    option two >> $397 per year (this is discounted price for paying in advance)

    In that way people who want to stay will always choose option 2 and people who cant afford or are just trying out can stay with option 1

    Hope that helps
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    • Profile picture of the author KimberlyDeborah
      First provide us 1 month user authentication so that i can check them and its benefits to me.
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  • Profile picture of the author TerryX
    The monthly sounds less, I'd test both
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  • Profile picture of the author Chris-
    Why not give them BOTH options? Some people want to test before they commit too much, some don't want to waste time doing things monthly and just want to pay now and get on with it.

    Chris
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  • Profile picture of the author datingworld
    There isn't any doubt that variety of paying options would certainly increase your sales.
    Offer both of them and if you can, also introduce 3 and 6 months along with 1 month and 1 year plan.
    This would certainly increase your sales.
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  • Profile picture of the author KevinChapman
    I'd offer both options, it's always hard to decide what route to go down.

    Like JrJohn said include a small discount if they pay for the year up front.
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  • Profile picture of the author Naeema Anum
    For the First time you can offer one very very valuable part of your product.
    gain trust with your buyers and offer some times later a more valuable niche specific product to a monthly payment. This is so powerful!!!
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    • Profile picture of the author Kay King
      Both options allow me to give my subscribers a video tutorial a month for 12 months.
      I think it would be difficult to convince buyers to pay $497 for something to be slowly released month by month over the next year. Unless it's personal training with face time they will want the product in place when they pay.

      Pay early and pay more??? 12 x $39 is only $468 .

      What you might do is offer a 3 month or 6 month plan where the buyer saves money by paying one fee.
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      • Profile picture of the author Steve B
        I guess I have a different slant on this question.

        I personally don't think the amount you charge is going to affect the "drop out rate" all that much. Buyers will sign up knowing what is expected of them. If they are satisfied and want more they will stay.

        What will affect it is the quality and compelling nature of your offering. If you have a product that your buyers absolutely have to have, they will stay with you. If, on the other hand, the customer tries your product for a month or two and just can't see the value in staying with you any longer, he will leave.

        There will be some "tire kickers" that will join to see what you're offering and it is your challenge to make the product so good that these people will see the value in staying.

        The best to you,

        Steve
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  • Profile picture of the author Steven Miranda
    Small one-time fee is almost always better and you generate more clients and reoccurring income.
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  • Profile picture of the author adelewilliams
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    The more payment options you provide, the bigger the sales will be. By letting your buyers decide between monthly or one time money charge, you will approach to their comfort zone.
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  • Profile picture of the author CharlesL
    Personally, I hate recurring fees and would almost always prefer to pay a one-off price.
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  • Profile picture of the author Randall Magwood
    Test both. That way you can have real world experience and actual figures - as opposed to theory.
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    • Profile picture of the author KimberlyDeborah
      Thanks for the recommendations and all the suggestion.But as for the commitment i want to get more familiar with working of this software so i want to planned it for month and then i will make my mind for next premiere plan .
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  • Profile picture of the author visimedia
    if you want a better cashflow, take the monthly for sure. If you have enough budget to get going and you want to save, go grab the annual payment option if they offer some discount.
    as simple as that.
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  • Profile picture of the author m5smiley
    I think you will get more people with the monthly fee. These costs seem really high to me, but of course I am not aware of what your videos are about so I can't judge! Why not offer a substantial discount for the year. Such as $399 for the year or $39 per month. If they opt for the year they get two months for free.
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  • Profile picture of the author NellyColby
    Just keep both of them available for a while and see what the trend is. However, think that offering both options would increase the chances to get customers because they are not all the same, they might have distinct preferences. Give them the freedom to choose!
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  • Profile picture of the author Anonymous Affiliate
    Drop-out rate is significantly higher than what most people expect, because MANY consumers purchase based on curiosity or impulse. That basically means that, after the first 2 or 3 months, most members drop out REGARDLESS of how good your content is.

    Besides, don't expect your conversions on the monthly fee version to be significantly higher than the one-time payment versions. At least to my experience: people dread recurring payments.

    I would go for the one-time payment option.
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