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Recurring VS One-Time Payment Systems

by Naks
12 replies
Hey guys,

So...

One-Time more expensive payment

Or

Cheaper recurring payments?

So far it seems like people lean a bit more towards the recurring, but I'd like to know why?

In the long term, it seems that you would make more money with the more expensive one time payment because people typically cancel their memberships after the first few months anyways, so you end up with less?

I'd love to hear what strategy fellow warriors are using and why..

Cheers
#onetime #payment #recurring #systems
  • Profile picture of the author gabibeowulf
    Originally Posted by Naks View Post

    ...because people typically cancel their memberships after the first few months anyways, so you end up with less?
    So, you cancel your hosting every few months?
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    • Profile picture of the author Naks
      Originally Posted by gabibeowulf View Post

      So, you cancel your hosting every few months?
      Haha no no. I meant to say when someone subscribes to your website, you have no guarantee of getting that customers payment again the following month because they may cancel the recurring payment.

      Hopefully this makes sense.
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      • Profile picture of the author Internet Undertaking
        Originally Posted by Naks View Post

        Haha no no. I meant to say when someone subscribes to your website, you have no guarantee of getting that customers payment again the following month because they may cancel the recurring payment.

        Hopefully this makes sense.
        I think the point gabibeowulf is trying to make is, hosting is necessary and it is something you feel you need rather than want or should flip flop about.

        So, offer re-occurring if you can offer something of value that continues to be of value for a long time. For example, if you offer a membership teaching people how to make money, if your content actually helps people make money, they won't leave you. It would be counter productive for someone to leave you if they benefit more from your membership than they would from the price of your membership.
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  • Profile picture of the author Rory Singh
    Low cost reoccurring commissions that have higher levels. I have had 2 active affiliate who have been paying for the last 2 years a small $25 fee monthly. I only use one system that starts off at $25 that then has levels of $100, $500, $1,000 and then $3,000. The $25 and the $100 ones are monthly but the rest is just one time.

    I like this type of mix because the skeptical folks still can join (skeptics think they will lose money so they don't care if they lose twenty five bucks).

    The higher levels have the potential to replace and even surpass your income online if you are a good enough marketer who can generate your own traffic.
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  • Profile picture of the author aurettemag
    Recuring Payment is always better
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  • Profile picture of the author ronrule
    As a buyer, for me it's a trust-based decision. If I'm buying something I know I'm going to need long term and I trust the vendor, I would rather pay up front for a longer period. I hate having multiple $5 - $20 monthly charges, would rather pay once a year or longer.

    I only prefer monthly if I don't know for sure that I want to commit to the seller or the product.

    As a seller, I offer both. If they cancel after a month, so what? The customer who can afford $50 but not $500 isn't a candidate for the full payment, so I'll never get $500 out of that guy anyway. But I can still get his $50.
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  • Profile picture of the author Alex Blades
    Depends on what you are selling. If it is MMO opportunity or something similar, then a lump sum would do. If it's a tool that subscribers need to use everyday, then go with the Subscription.
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    • Profile picture of the author AllanJames
      Originally Posted by Alex Blades View Post

      Depends on what you are selling. If it is MMO opportunity or something similar, then a lump sum would do. If it's a tool that subscribers need to use everyday, then go with the Subscription.

      Right on target!       Nowadays I only promote need to have subscription services (autoresponders, hosting, marketing tools such as a mobile/sms platform) where the quality is high, the need is through the roof.

      Consequently the retention is high and my residuals continue to reliably flow in monthly to fund my rather relaxed lifestyle.
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  • Profile picture of the author gcbmark20
    Hi,

    you could always try adding a one off time payment and a recurring
    paying option.

    Let your buyers to make the buying decisions for you.

    See which is more popular.

    Recurring is very powerful once you know that the retention rates are
    high.
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  • Profile picture of the author malcsimm
    Originally Posted by Naks View Post

    Hey guys,

    So...

    One-Time more expensive payment

    Or

    Cheaper recurring payments?

    So far it seems like people lean a bit more towards the recurring, but I'd like to know why?

    In the long term, it seems that you would make more money with the more expensive one time payment because people typically cancel their memberships after the first few months anyways, so you end up with less?

    I'd love to hear what strategy fellow warriors are using and why..

    Cheers
    You just have to test to find out for sure with your particular offer. A lot of people do the one-time price, then down sell to 3 monthly payments or whatever, then maybe even down sell again to 1 dollar trial.

    It's always nice to get something recurring. I've got commissions in Clickbank coming up for their 40th recurring monthly payment. That's nice for making one sale!

    But if you're making the products you've got to work out how you can continue delivering value month after month which can be a challenge. Another option is to have a limited recurring - so, maybe have a six-month membership. Sometimes this can raise response rates because people know it's not going on forever.

    So, testing is the way to go!

    Malc
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  • Profile picture of the author datingworld
    It depends on what the product is and what's it's real demand is...
    But most of the time recurring payments are more effective as not many people can afford one time big fees..
    you would see many people paying lower recurring payments instead of a one time big fees..
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  • Profile picture of the author Evan H
    Like others have said recurring payments are better since you will continuously get paid but it also depends on the service or product you are offering.
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