Done a $1 Trial Launch? Come in here...we need to talk!

by Ernie Lo 27 replies
If someone here has done a IM product launch (membership) for $1 which then goes to the full price 30 days or whatever later.

Please post (or PM) the percentage that stayed on after the $1 trial ended.

Please I really need to know..

Otherwise, someone please post a couple of marketers and their product which have done this, and I'll contact them myself

Thanks very much.
#main internet marketing discussion forum #herewe #launch #talk #trial
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  • Profile picture of the author Lance K
    Originally Posted by Ernie Lonardo View Post

    If someone here has done a IM product launch (membership) for $1 which then goes to the full price 30 days or whatever later.

    Please post (or PM) the percentage that stayed on after the $1 trial ended.

    Please I really need to know..

    Otherwise, someone please post a couple of marketers and their product which have done this, and I'll contact them myself

    Thanks very much.
    Are you looking for the average time a person stays a member or just the percentage who stay past the first month?
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  • Profile picture of the author Ernie Lo
    Hi Lance..

    I'm just looking for a % of how many people on average will cancel after the $1 trial has ended.

    So for simple sakes:

    Launch at $1 trial > 500 people buy at $1 > 50% cancel > 250 people stay on at full monthly price
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    • Profile picture of the author Lance K
      Originally Posted by Ernie Lonardo View Post

      Hi Lance..

      I'm just looking for a % of how many people on average will cancel after the $1 trial has ended.

      So for simple sakes:

      Launch at $1 trial > 500 people buy at $1 > 50% cancel > 250 people stay on at full monthly price

      Sorry if the following answer sucks...

      It depends.

      Are you going to touch base with them ahead of the rebill to let them know that their trial is running out and they're going to be charged the full amount for the next installment?

      Are you going to hit them with cliffhanger/teaser info about what's to come the following month (or week or whatever)?

      Is all your content pre loaded in the membership area where people can download it all at once before their $1 trial runs out? If so, have you done anything to make them want to stay (i.e. put out a schedule of what additional content will be added and when)?

      There are too many different ways for publishers to do things to rely on anyone else's experiences as average for everyone. Your best bet is to test your offer.

      In your example, if 50% cancel you still have 250 recurring customers. If you hadn't offered the $1 trial you might not have anywhere near that. So really you need to analyze the effect of the $1 trial on your ability to acquire customers, and compare that to your other offer(s)' ability to acquire customers.
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      "You can have everything in life you want if you will just help enough other people get what they want."
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  • Profile picture of the author Chuck Evans
    Ernie,

    When we first launched our membership site we had two prices. One for a annual price and one for a 30 day trial. A significant number of people took the annual choice OVER the 30 day trial. Less than 10% of the 30 day people kept on BUT over 90% of the annual people renewed and KEEP renewing. It's been almost 4 years now and we over 10k members.

    We won't do THAT again!

    chuck
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    Chuck Evans - Golf Magazine Top 100 Teacher
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    • Profile picture of the author Ernie Lo
      Thanks for sharing Chuck.

      But I'm guessing, your trial was a FREE trial?

      The % should be higher even by charging $1....thats what I hope to find out


      Originally Posted by Chuck Evans View Post

      Ernie,

      When we first launched our membership site we had two prices. One for a annual price and one for a 30 day trial. A significant number of people took the annual choice OVER the 30 day trial. Less than 10% of the 30 day people kept on BUT over 90% of the annual people renewed and KEEP renewing. It's been almost 4 years now and we over 10k members.

      We won't do THAT again!

      chuck
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      • Profile picture of the author geraldlum
        That pretty amazing...I thought people prefer to go for month installment??

        I'm going to launch a membership for $9.95 per month soon and I giving $2 trial launch.

        Looks like I can try on annual membership!
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        • Profile picture of the author Ernie Lo
          You'd be surprised...a lot of people prefer the option of paying annually and getting a nice big discount by doing so

          It's best to have both options I think.



          Originally Posted by geraldlum View Post

          That pretty amazing...I thought people prefer to go for month installment??

          I'm going to launch a membership for $9.95 per month soon and I giving $2 trial launch.

          Looks like I can try on annual membership!
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          • Profile picture of the author David-JP
            If you are gonna do a monthly payment, you have to do a yearly!
            I'd say 15% of people sign up for my yearly plan.

            David
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            • Profile picture of the author Ernie Lo
              Thanks for sharing David.

              Yes I've heard the average that annual fee options make up around 10-15% of total sales, totally worth doing, if we know the average members stays 3 months.


              Originally Posted by David-JP View Post

              If you are gonna do a monthly payment, you have to do a yearly!
              I'd say 15% of people sign up for my yearly plan.

              David
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      • Profile picture of the author Chuck Evans
        Originally Posted by Ernie Lonardo View Post

        Thanks for sharing Chuck.

        But I'm guessing, your trial was a FREE trial?

        The % should be higher even by charging $1....thats what I hope to find out
        Sorry, I stated we had two prices, it was a $5.00 trial for 30 days then the "normal" price - less the initial $5.

        What we learned Ernie was to offer a quarterly and an annual pricing. Monthly didn't work for us but hey, that's why you should test. Bill Myers has a monthly and a annual for his site as do boat loads of others.

        chuck
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        Chuck Evans - Golf Magazine Top 100 Teacher
        Learn How To Play Your Best Golf

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        • Profile picture of the author jhongren
          Originally Posted by Chuck Evans View Post

          Sorry, I stated we had two prices, it was a $5.00 trial for 30 days then the "normal" price - less the initial $5.

          What we learned Ernie was to offer a quarterly and an annual pricing. Monthly didn't work for us but hey, that's why you should test. Bill Myers has a monthly and a annual for his site as do boat loads of others.

          chuck
          Hi Chuck,

          I am wondering if people sign up for the annual one, how much discount do they get?

          Thanks,
          John
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          • Profile picture of the author Chuck Evans
            Originally Posted by jhongren View Post

            Hi Chuck,

            I am wondering if people sign up for the annual one, how much discount do they get?

            Thanks,
            John
            John,

            The discount was 25% if they went with the yearly subscription. For the past year however we have gone to annual only with no reduction in membership or sign ups and have increased membership numbers!

            So each year we have tested something a little different in our membership offering and so far the only thing that didn't work was the monthly offer.

            We have a slightly different type of membership. We offer NO downloads just content that changes - and gets added to - monthly, tons of audio and video, online workshops and assessments, ways to track your personal data etc.

            Who'd have thunk it!

            chuck
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            Chuck Evans - Golf Magazine Top 100 Teacher
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            • Profile picture of the author jhongren
              Originally Posted by Chuck Evans View Post

              John,

              The discount was 25% if they went with the yearly subscription. For the past year however we have gone to annual only with no reduction in membership or sign ups and have increased membership numbers!

              So each year we have tested something a little different in our membership offering and so far the only thing that didn't work was the monthly offer.

              We have a slightly different type of membership. We offer NO downloads just content that changes - and gets added to - monthly, tons of audio and video, online workshops and assessments, ways to track your personal data etc.

              Who'd have thunk it!

              chuck
              Thanks Chuck. Thanks for your reply. It looks like we have to test afterall. As a newbie product creator, we have always thought that cheap is "good"...or that one price we set is "fixed" but looks like you have proven otherwise.

              I have to go on testing again, again and again. =)

              Cheers,
              John
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  • Profile picture of the author snakez0r
    You may aswell try it Ernie.

    Seems like all the top dogs in IM seem to be doing it at the moment so it must be a good idea
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  • Profile picture of the author Ernie Lo
    Thanks so much Chuck, I appreciate it.

    I'm kind of surprised and a little disappointed at how you said less than 10% of them stayed on to pay the full price.

    That's why more results would be appreciated

    But I'm sure your figure would be around the average the more I think about it.
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  • Profile picture of the author Chris Lockwood
    I agree with Lance. Other people's numbers are meaningless as far as predicting yours. The most important thing is how many people stay, not what %.

    It's a bit like asking how much money you can make in a year.
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  • Profile picture of the author Ernie Lo
    Lance I do agree with you and you make some points I appreciate your response. The quality of the content I will be providing is definitely not an issue and I will be doing some of the things you mention to get them looking forward to each months content.

    I'm just after an "average"

    The average for an optin page is around 30%
    The average conversation rate for a sale page is 1%
    etc etc

    Of course it's different for everyone ,but an average is....well an average lol...I'm after the most common figure so I don't set my expectations too high
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  • Profile picture of the author Ernie Lo
    Thanks again Chuch

    You've mentioned several times here that monthly didn't work well for you.

    Care to explain why you think it didnt work well?

    Are you saying you got more annual sales than monthly? Or are you talking specifically overall profit wise?

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    • Profile picture of the author Chuck Evans
      Originally Posted by Ernie Lonardo View Post

      Thanks again Chuch

      You've mentioned several times here that monthly didn't work well for you.

      Care to explain why you think it didnt work well?

      Are you saying you got more annual sales than monthly? Or are you talking specifically overall profit wise?

      Yes virtually ALL of our membership sales came/come from annual subscriptions.

      When we began the paid membership we polled our members, it was free at the time but NOT with any content but rather a forum, and asked THEM what they thought the pricing should be. Well, we priced it BELOW what everyone said they were willing to pay for what we were going to supply.

      We intentionally produced content that was not downloadable because people would take the 30 day test drive, download the content and then leave. I think that was the big test and people that thought they would get all of this content downloaded during that 30 day period had a rude awakening!

      In fact, server logs showed us that a lot of people who bought the 30 day trial went to the site a couple of times, found out they couldn't download then never came back! What a world we live in!

      We use the membership section as a loss leader to generate other product sales. I have a friend that uses their paid newsletter and membership section to pay for their marketing budget. Their's makes approximately 10 figures a year!

      chuck
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    • Profile picture of the author Roy Carter
      Very interesting. I am currently on month 5 of my membership service and only charge my members monthly at present.

      Looks like i'll have to think seriously about testing an annual subscription as well.

      Thanks for the input.

      Roy
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  • Profile picture of the author peteinoz
    Originally Posted by Ernie Lonardo View Post

    If someone here has done a IM product launch (membership) for $1 which then goes to the full price 30 days or whatever later.

    Please post (or PM) the percentage that stayed on after the $1 trial ended.

    Please I really need to know..

    Otherwise, someone please post a couple of marketers and their product which have done this, and I'll contact them myself

    Thanks very much.

    Hey Ernie

    The answer to your question is not so much about the method used to sell your product. but :-

    The overall quality of the product.
    The overall perceived authority of the product owner/creator
    The type of product. i.e. will it produce results in the trial period.
    The end price, how high or low it is.


    I currently have 3 products using $1 trials, though these are software applications, that automate a lot of manual work and save people a lot of time, with varying price points after the trial ends. So giving my figures are useless, unless you have similar applications and same percieved leadership your your field as I.

    My next product is a high ticket Item with a 7 day $1 trial , which I expect to convert between 40 and 60% Why? because I have a lot of loyal customers who have used my previous products and understand the quality and amount of time saved my new product will save them

    So without understanding more about the product you will be releasing its hard to give any specific figures to work from..


    hth's

    Pete
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    • Profile picture of the author Greg Cooksley
      Originally Posted by peteinoz View Post

      Hey Ernie

      The answer to your question is not so much about the method used
      to sell your product. but :-

      The overall quality of the product.
      The overall perceived authority of the product owner/creator

      The type of product. i.e. will it produce results in the trial
      period.
      The end price, how high or low it is.

      Pete

      Hey Ernie,

      These two highlighted points that Pete made are the one's to
      focus on as far as I'm concerned.....

      Especially the perceived authority one.

      If you look at Chuck's example......He is perceived as a Golf
      authority, so his membership results are because members are
      prepared to trust Chuck's advice on how to improve their golf.
      It's a very personal thing and impacts on the member's increased
      ability.

      So, if your targeted audience see you as an authority, your success
      will be that much greater than if you are seen as just another
      so-so marketer.

      Hope that makes sense...

      Regards

      Greg
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      • Profile picture of the author Frank Bruno
        One thing that you should seriously consider whether offering memberships is to offer several types of payment variations.

        I have a membership site that offers three membership levels ranging from $97 - $147- $167

        About 80% seemed to be taking in $167 lifetime membership

        You really just need to test things out I found that people really don't like to pay a monthly fee for this type of membership site that I have.

        You'd be very very surprised how many people like to buy a lifetime membership to something. You may want to consider that option as well.

        I think the best thing to do is offer multiple membership types and payment variations and you'll know right away what they liked the best.

        Remember the 80/20 rule applies to everything.


        Frank Bruno
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  • Profile picture of the author Ernie Lo
    Thanks for sharing Pete, I appreciate it. It seems not many are willing to share their data here, or are out on holiday

    40-60% is very good, well don't mate, yeah I'm guessing software would have a higher % than just content as it can be viewed as a service in a way which people may need more desperately.
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    • Profile picture of the author peteinoz
      Originally Posted by Ernie Lonardo View Post

      yeah I'm guessing software would have a higher % than just content as it can be viewed as a service in a way which people may need more desperately.

      yes this is correct..

      So its hard to give relative stats etc..

      e.g. I spent over 6 figures developing the product, people get access to this development, for just a buck... the $1 will convert very highly, and from the $1 to full price will convert pretty well for a high ticket item also..

      Im rewarding my existing customer base by offering entry level at a reduced price, to reward them for their loyalty. Which is another reason I expect the high conversion rate. Plus with the 7 day trial, they can use the product and hopefully profit from it within this time frame.. some will some will not.

      It will convert well because of the percieved (and real in this case) value..

      So focus on the value you are providing, provide a lot of social proof. whack in a few surprise bonus's during the trial period.. all these things will help your conversions. You are selling yourself as much as your product mate.. So get your perceived value right up there aswell.

      Cheers

      Pete
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  • Profile picture of the author peteinoz
    Of course theres the reason why your doing the $1 trial?

    to expose the market to a quality product?
    to build a list?
    to build your credibility?
    or all?
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  • Profile picture of the author Ernie Lo
    Interesting insight Frank thanks.

    I never considered offering a lifetime membership, residual income is a big philosophy for me, but yeah will keep that one in mind.
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