It's been awhile since I did one of these and I'm waiting on FTP info from a client... so rather than pick my nose and watch TV, I came right to GFY to babble on about this...
I think I've covered this in another tip way back but it's a good one and it's a common question with new clients: "What do you think I should charge?" Most people go with whatever price point they see on similar sites to theirs. I've found that it's very important to try several and compare the numbers though. It's not just about how it effects conversion too... you have to look at retention numbers for members at various price points and also how it effects your webmaster base (you charge more, they get paid more on revshare or you can afford to pay more on PPS).
So if you're starting a new site or looking to eek all the profits you can out of an old one, consider setting up three or four options and running them for a couple weeks each so you can compare results. Do something like:
$2.95 3 day - Recur $29.95 30 day
$4.95 4 day - Recur $34.95 30 day
No trial - $24.95 30 day
No trial - $34.95 30 day
Then setup a spreadsheet to monitor conversions, trial conversions to full and retention month to month and compare the results of each to see where your best bottom line is. The only thing that you won't get a feel for directly is how your webmasters are responding (they drop your link or add you based on what it works out to in their payout). Don't assume the webmaster will automatically stick with the most profitable option because alot of guys work off perception rather than reality. That's why a program like NATS is so good because you can setup individual billing options per webmaster and allow them to select one. I'd rather have my webmasters keep sending traffick to a less profitable option than get nothing from them!
Anyway... no rocket science there but it's something worth takign a look at if you have't already. Best of luck to everyone in your ventures!
I think I've covered this in another tip way back but it's a good one and it's a common question with new clients: "What do you think I should charge?" Most people go with whatever price point they see on similar sites to theirs. I've found that it's very important to try several and compare the numbers though. It's not just about how it effects conversion too... you have to look at retention numbers for members at various price points and also how it effects your webmaster base (you charge more, they get paid more on revshare or you can afford to pay more on PPS).
So if you're starting a new site or looking to eek all the profits you can out of an old one, consider setting up three or four options and running them for a couple weeks each so you can compare results. Do something like:
$2.95 3 day - Recur $29.95 30 day
$4.95 4 day - Recur $34.95 30 day
No trial - $24.95 30 day
No trial - $34.95 30 day
Then setup a spreadsheet to monitor conversions, trial conversions to full and retention month to month and compare the results of each to see where your best bottom line is. The only thing that you won't get a feel for directly is how your webmasters are responding (they drop your link or add you based on what it works out to in their payout). Don't assume the webmaster will automatically stick with the most profitable option because alot of guys work off perception rather than reality. That's why a program like NATS is so good because you can setup individual billing options per webmaster and allow them to select one. I'd rather have my webmasters keep sending traffick to a less profitable option than get nothing from them!
Anyway... no rocket science there but it's something worth takign a look at if you have't already. Best of luck to everyone in your ventures!
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