Originally Posted by WarChild

Your price point is too low. People associate quality with price. If you're priced much lower than competitors who are well established, I think your surfers will be expecting a catch.

What I think you should do is stop calling it a donation. Mail all of your members with a fairly short to the point email. Say you've reached a milestone where there's so many members that you can no longer afford to offer the high end (video, group video, etc) features to users at no cost. Go on to say that because you value all the existing members, you will be offering them a special $5 membership not available to new members and of course they can retain their basic membership for free. Raise your price for new members immediately to be competitive with your competition. Feel free to undercut their pricing here, but don't bargain basement on it. People associate cheap with having no value, it's the culture we live in.