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in the last week i have seen 3 sites with non-recurring trials but recurring monthly memberships. i have seen a site with a trial that is almost as high as the monthly price. i have seen a site with a rebilling and non rebilling month price that is exactly the same.
and now i've seen a site with a recurring AND non recurring trial :-/
WTF???
We've been experimenting with a bunch of different pricing structures, and watching carefully what converts.
Some of what we've found goes against conventional wisdom, but it works, at least for us. In some cases MUCH better than other pricing structures we've tried.
We've talked about it a lot, watch it pretty closely, and what we're surmising is that the landscape is changing... I think the growing presence of VOD, combined with increasing competition is perhaps creating more sophisticated buyers. What we're seeing is that the psychology of pricing plays very heavily into the sale amount at which the sale actually converts.
Not enough data to say anything definitive, and I'm also not at all sure that our experience will generalize to any other site... but we are finding some very interesting things, at least with the traffic hitting our sites.
you do have some interesting pricing things, but what you do is a little different than a non recurring trial. not a lot of room in a non recurring trial for much income :D
I have a different pricing structure on a new site I'm working on right now that fits more the needs of the consumer, and it's not PPV.
I agree that things are changing with consumers. The current memberscape has evolved due to the influx of free porn, free webcam chats, etc. etc. $0.02
Here's some interesting dta when it comes to joins/rebills that ive collected over the last 12 months...
1) 29.95 recurring are typically converting in to 3 or 4 monthly rebills, sometimes higher but the average works out to around 3-4 months making a total of between $119.80 and $149.75 per member.
2) 69.95 recurring at 29.95 after 3 months typically get an additional 3-4 monthly rebills after the initial 3 month period making a total of between $189.75 and $219.70 per member.
3) 69.95 recurring at 69.95 after 3 months are not rebilling making $69.95 per member.
4) 89.95 recurring at 29.95 after 3 months typically get an addition 1-2 monthly rebills making a total of between $119.90 and $149.85 per member.
5) 89.95 recurring at 89.95 after 3 months are not rebilling making $89.95 per member.
Make of those figures what you will :)
It is also worth noting how each type of sales appears on the CCBill join forms as this does play an important role in the sales process.
$29.95 for 30 days then $29.95 recurring every 30 days.
$69.95 for 90 days (trial) then $29.95 recurring every 30 days.
$69.95 for 90 days (trial) then $69.95 recurring every 90 days.
$89.95 for 90 days (trial) then $29.95 recurring every 30 days.
$89.95 for 90 days (trial) then $89.95 recurring every 90 days.
Ill let you figure out which option sells best and why ;)
Regards,
Lee
Lee you are the voice of wisdom and good experience on this one!!!
cheers,
Luke
Quote:
Originally Posted by Lee
I'm not deep into pricing yet - can you hint me? :D
DEVELISH
who's off for the weekend and deporting his BF for the next two weeks on sunday :D
A great members area could be the saving grace, but affiliates are left out in the cold. This is why revshare sites with non recurring options need to start supporting joinbacks that occur within a reasonable period of time.Quote:
Originally Posted by basschick
The one that we have that kills me is that if you purchase a recurring monthly membership, it's $24.95.
And if you choose the NON-recurring monthly membership, it's $29.95.
and most people go with Non-recurring.
And then sign back up the next month.
It's crazy, but hey... we make more from it.
We see the same thing. I honestly believe that it's Elmo who has AOL and remembers when he joined a site in 1997 and couldn't cancel the recurring billing. But hey, if he wants the security of a non-renewing membership, I'm happy to oblige for an additional $5/month.Quote:
Originally Posted by Jasun
I also think a lot of customers don't realize they can cancel 5 seconds after they join on a recurring membership and still get the full month they've paid for... not that I'm going to go out of my way to educate them about this :)
If that is the case what is the incentive for webmasters to promote your site?Quote:
Originally Posted by Jasun
excellent conversions could be an incentive.
also they didn't say they use it on affiliate join pages.
Quote:
Originally Posted by realtoughbear
They do. As do many sites that have this pricing model.
As a matter of fact many revshare programs are making a killing on their one month memberships that do not recur.
IMHO it's worse than any traffic leak you could have as the surfer you are losing is one that actually joined the site, not just visited.
If you make 12.50 on the intial sale as an affiliate and the member joins again for another three months. The paysite gets an extra $75, you get nada.
Even PPS programs don't skim(shave) this bad...
Retention would be nice as well. Kinda goes along with Lee's post about ethics if you ask me.Quote:
Originally Posted by basschick
Quote:
Originally Posted by realtoughbear
We'd obviosuly all rather they choose the recurring and stay a long time.
But when we added that as an option, our joins went up. Which would suggest to me that we were losing out on people who were either too lazy to cancel the membership themselves or (as was suggested) had bad experience with unscrupulous sites that continued to bill them wether they wanted it or not.
(and yes, the affilates who are on recurring billing WILL get a higher amount for the non-recurring sale)
I agree with Jasun. In fact, we *tried* removing all the nonrecurring joins from our join pages, and conversions dropped significantly. The crazy thing is, many surfers will choose an identical period (1 month) join at up to $15 more than a recurring join. If you don't offer the nonrecurring join, some of those members simply won't sign up, or at least that's what our tests have indicated on our sites.
For us it isn't about ripping off the affiliate, it's about trying to get the surfer to buy the product in the first place.
I just feel that sometimes the price difference is so low that it sways those who would normally recur into using a non recur option. Make it at least $10 more and you have the best of both worlds....
so you're problem is just that we're not charging them enough to cancel their membership.
Ok... that's a new one.
Lloyd,Quote:
Originally Posted by realtoughbear
If you dont like it, as has already been mentioned, dont send your traffic to the sponsor in question.
At the end of the day im sure there are a lot more affiliates who are happy they are making a single sale with this type of setup than not making any sales had it not been implemented.
Regards,
Lee