What sells better: Monthly fee or one time payment!

21 replies
So I have a fantastic product to put on the market within the next 14 days.
It’s a web builder that let you start your own website (In a specific niche) within 5 minutes.
Product is incl. hosting, content, updates and profit sharing.

Now I was thinking about a monthly subscription 10$ a month.

But because the money is less important than having a loyal user I was thinking about offering a 10 year payment for the price of 15 months.

So 150$ for 120 months.

Both are after a 30 day free trial period.

What is your opinion, what sell better a monthly subscription or a lifetime Fee.

Why I want to know? Because I want you guys to sell it as well for me and earn a nice fat commission.

So I would be very happy if you could give me some feedback on this.
#fee #month #monthly #pay #payment #sells #time
  • Profile picture of the author sogeshirts
    Probably more people will take you up on the 10 dollars per month, as it is easier for them to test it out. I'm sure you will get some people that take the 150 for 120 months deal because of the value though.
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    • Profile picture of the author allegandro
      Originally Posted by sogeshirts View Post

      Probably more people will take you up on the 10 dollars per month, as it is easier for them to test it out. I'm sure you will get some people that take the 150 for 120 months deal because of the value though.

      What I forgot to mention is that I offer a 30 day free trial period. (Now added it)
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  • Profile picture of the author winnermarketing
    The 10$ solution could do more subscribers.
    I think you should offer these alternatives:

    - monthly fee or 120 month with discount!
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  • Profile picture of the author Jason Kanigan
    120 months??

    Research how long most customers stick with continuity programs. Make it profitable within that time period.

    And look how hosting & autoresponder companies charge...lots of overlap in the target market.
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    • Profile picture of the author BigFrank
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      Originally Posted by Jason Kanigan View Post

      120 months??

      Research how long most customers stick with continuity programs. Make it profitable within that time period.

      And look how hosting & autoresponder companies charge...lots of overlap in the target market.
      You're a good man, Jason. I started to type a reply and about halfway through it, I just quit. My incredulity won out over my sense of duty.

      I'm heading for the basement to spend time with the chuckle heads. :-)

      Cheers. - Frank
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  • Originally Posted by allegandro View Post

    I was thinking about a monthly subscription 10$ a month.
    That sounds reasonable.

    I was thinking about offering a 10 year payment for the price of 15 months. So 150$ for 120 months.
    That sounds not so reasonable.

    what sell better a monthly subscription or a lifetime Fee.
    The challenge I have with purchasing "lifetime" (10 years?) access upfront to products and memberships etc, is that more likely than not, they won't be around.

    If I try to log into purchases I made 10 years ago, 5 years ago, even 2 years or less ago, 80% of them are no longer active, and many of the original domain names are now forwarded to nudy pics. Many of these included "lifetime" memberships that were offered at a discount if a larger upfront payment was made.

    Lesson learned? Yes!

    This is the unfortunate reality of many small and big ideas and goals marketers have for an online venture. Things rarely work out according to the original plans.

    Life is short, and life for most online products/services are even shorter.
    Therefore I don't look much further than a year at a time, and pay accordingly.

    #NotMyCash
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  • Profile picture of the author solarwarrior
    Not so if you are in an evergreen niche.

    It will bring in money year after year if you do it right.

    Keeping the monthly cost low one of the tricks to retain customers.
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    • Profile picture of the author allegandro
      Thank you for all the wise words, will take them in consideration.
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  • Profile picture of the author st0nec0ld
    120 months is a bit too long, well for me. 2 years would be a best offer.
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  • Profile picture of the author Aur1mas
    In my opinion it's totally a monthly fee. Think that if you would make a one time payment - the price should be much higher which automatically put off a client. In most of the cases - if it is a service you are selling it would be much better and efficient if you would make a monthly fee. However, in case you are selling some kind of product, you can better make a one time payment and the client might feel that the commodity is already his/her.
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  • Profile picture of the author nivlek2009
    Your idea can definitely go for a monthly-fee because it's hosting-based and tool-based. However, not everything can. For example, training programmes will rarely ever be able to retain customers no matter how good the content is.
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  • Profile picture of the author dustychimes
    I would think with a larger, one time fee, the chances of receiving a refund request or chargeback would be greater than charging a smaller, more manageable ongoing monthly fee. Especially if your service is not 100% on the up and up. When people see their credit card statement and come across a large fee, they are more likely to inspect it closer. If the charge is smaller, say the amount of a pizza, there is also a greater chance of people passing it by as its not that much out of the ordinary.
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  • Profile picture of the author seobuzz
    I would keep both options on the website. Every people have their own approach when it comes to business. So you have to be as much as flexible with your offers.
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  • People like to feel they can exit when they want to. One lump payment is never an option many people enjoy making. That is unless you can show serious social proof.
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  • Profile picture of the author dvduval
    I like the monthly fee only myself. It's more manageable and you should work hard to make sure people have a reason to keep paying and you will have some great years ahead. I do a similar thing that I started a year ago and now well into triple digits of customers paying a monthly fee.
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  • Profile picture of the author agmccall
    Originally Posted by allegandro View Post




    Why I want to know? Because I want you guys to sell it as well for me and earn a nice fat commission.
    This is the type of product that most people will not promote as you are asking people to pay for a site that will not be theirs. Most will look down on this type of product

    al
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    • Profile picture of the author allegandro
      Originally Posted by agmccall View Post

      This is the type of product that most people will not promote as you are asking people to pay for a site that will not be theirs. Most will look down on this type of product

      al
      Well let's say that Europe's leading affiliate company doesn't agree with you. And they will start rolling it out in Western-Europe starting the beginning of July.
      I know many web builders that host also your website, so nothing new under the sun here.
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      • Profile picture of the author agmccall
        Originally Posted by allegandro View Post

        Well let's say that Europe’s leading affiliate company doesn't agree with you. And they will start rolling it out in Western-Europe starting the beginning of July.
        I know many web builders that host also your website, so nothing new under the sun here.
        I could care less what Europe's leading affiliate company thinks. This is not a product that any marketer that cares about their customer will promote. You will, of course, get the newbies and marketers that put $$$ above all else. And that is too bad

        al
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      • Profile picture of the author AntonioSeegars1
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        • Profile picture of the author allegandro
          Originally Posted by agmccall View Post

          I could care less what Europe's leading affiliate company thinks. This is not a product that any marketer that cares about their customer will promote. You will, of course, get the newbies and marketers that put $$$ above all else. And that is too bad

          al
          Weebly, Go Daddy, Yourhosting, Strato and many other big companies, all companies that over hosting with a webbuilder. Having millions and millions of clients, that buy from them a website that can be host only at that company.

          But you not have to agree with me,


          Originally Posted by AntonioSeegars1 View Post

          If you're not going allow people to own what they create, and your also providing content to them, then you will probably be bombarded with spam sites if you get customers to this.

          A few years ago, there was a fad where people would use a website building program that had a built-in content scrapper, and they would use the program to quickly make spam sites to attract quick income. Google eventually shut this down. What your offering sounds like what this program used to be.
          No, we not provide them with spam at all, our system is unique and we provide them with high quality content. Content they want. And I don't scrape any content at all,


          But we seem to go off topic, if our project will work or not.

          That is ok, we are here on a forum, and there are people with strong opinions. I like that, I need that and I respect all your opinions. I not have to agree with them. Like all people we have different minds and idea's and there is not one right or one wrong.
          That is the beauty about freedom of speech and marketing itself. There are more ways to sell a product and not each product is fit for each marketer, each client or each user. We all have our wishes and demands.

          So let's agree to disagree.
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  • Profile picture of the author Joan Altz
    Including hosting is a good move, and it's newbies who will take you up on that. So I would charge a low monthly and then make some long term deals later down the road. The ones with some bucks who get settled in with your hosting and system will pay the bigger sum later.
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  • Profile picture of the author WesleyGW
    Actually I have just done an informal test of membership plan vs. "one off" purchase.

    I had more people buy the product outright vs. going a monthly membership payment.

    Then I asked my members which they prefer...they all said the "one off" purchase.

    BUT if you want to do a membership plan I suggest: Offer a monthly amount and offer a yearly amount that is the cost of 9 months. Then offer a third option of LIFETIME access that equals 2 years of the monthly rate with a bonus or two thrown in.

    Test it for 3 months and check YOUR numbers.

    Just my 2 cents...
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