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Figured I'd chime in. I've tested this. It hurt.
I won't go into the psychology of pricing, because who really knows, but I'll share the end results:
When I changed my pricing from $24.99 to $9.99 / month, my revenue went down dramatically. I always had people that forgot to cancel and let memberships rebill until their cards expired... but it was never more than before.
People seem to fall into one of two categories; Willing to pay, or not willing to pay.
It comes down to how mind-blowing your content is, and how easy it is to find free scenes on the tubes. If he can't find it anywhere... your surfer will be forced to part with his cash.
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