Subscription Pricing Help Needed

by mkitchen 4 replies
I was selling an e-book that I was getting an acceptable conversion rate on except the price of it was too low (and had to be low for reasons i don't have time to expound on) to make a large enough profit margin to make pursuit worthwhile. I have since decided on creating additional content including videos and new monthly drip fed content. While reading another post on pricing, i am killing myself trying to figure out the best pricing model for this. With the software I'm using I can't really a/b test pricing models, so your input is greatly appreciated.

My initial thought was to have $15 for 1st mo then $3/mo after that. I wanted to have a more expensive option for a downloadable option something like $25 for 1 mo then $6.mo after that.

I was going to leave it at those two options, but then upon reading some other forums, the monthly fee seemed to be discouraging to some people, so then I thought I could also offer $15 for 1st month and then $15 for 6 months and then $25 for 1 mo and $30 for 6 months.

Is that too complicated now? Is it even initially too complicated. Is it better to just do $30/$60 for 6 months?

Do you think one of these would convert better?

I initially was going to set them as the first month is more b/c someone is buying into a reservoir of pdf's they can freely download to save, and then the monthly fee allows them to continue to stream videos and get a new piece of content that month.

Anyway, I hate to be long winded, but any opinions would be greatly appreciated. I am still about a month out from re-launch so I am trying to get all my ducks in a row now. Thanks for reading.
#main internet marketing discussion forum #needed #pricing #subscription
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  • Profile picture of the author Yadira Barbosa
    I really think is not very good idea to make so many price variations as $15 1st month then $3 then $10 I mean, you must set just one price and maybe 1 if they pay for a full year, for example.

    If you want to improve conversions maybe you can add a 5 day trial or 15 day trial and then $15 per month, of course you must to be sure to offer good stuff on the trial period, and offer good content in very single month, at this way your members will be waiting for the next delivery.
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  • Profile picture of the author pleskTR
    How about just $10 Per Month, That's it! It will be very easy to understand even for the noobs!
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    • Profile picture of the author mkitchen
      Thanks for these thoughts. I'm selling to teachers and home school parents and $10/mo is too steep for the teacher side....which is why i was trying to angle a slightly steeper upfront cost followed by a very low backend cost.
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      • Profile picture of the author Devid Farah
        Hi mkitchen,

        I don’t think I’ve ever seen two different subscription options for the same production.

        If you are going to have two price points, then it would probably be better to have a onetime payment and a subscription payment.

        The onetime payment can be like $499, but the user will get a certain amount of benefits such as use of the product for their life time.

        The other option could be $10 a month subscriptions plan, but the user has some capabilities limited.

        I am not a teacher, so I can’t really speak for them.

        But I don’t really see $10 a month being too expensive. If you do the math, that’s a little over a quarter a day.

        Good luck in whatever you choose, and I hope it works out for you.

        All the best,
        Devid
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