How do you decide the price of membership?

[deanb]

Hey guys, thanks for all the help in recent days, you guys have been great, with helping me figure some things out. Now, for my last question (for now). I am wondering, how do you decide how much the price will be for membership on your paysite? I see so many sites, ranging from 14.99 to 29.99 a month, and I was just wondering what factors do you take in when pricing out the membership.

[basschick]

don't guess about this - it's important. there are webmasters who charge $14.95 and could be charging more because they're afraid their site won't retain - yet there are sites retaining at $24.95 and $19.95 that have less content.

test your prices. either use your own traffic, buy traffic or find a couple of high traffic webmasters to help you beta test. send each price the same amount of traffic - make it at least tens of thousands of hits and add up total number of sales for each price. then keep track of those members - put their subscription numbers on a notepad file. keep track of how they retain. after 3 or 4 months, you'll have an idea of whether one price sold more subscriptions and whether 1 retained better.