scribbler |
03-13-2005 03:25 PM |
Trial Membership or Straight Monthly?
Which are more profitable - trial signups or straighty monthly memberships?
Since we started up our pay site three years ago, we've done well with $2.95 7-day trials, which then recur at $29.95 a month. But with affiliate traffic rising fast, our up front payments to affilates (we pay per sign up) are killing our cash flow.
So we're thinking of phasing out the trials, and going to straight $29.95 a month signups. The plan is to work hard on our conversion rate (with a conversion rate consultant) to maintain the current conversion ratio, so that affiliates don't lose out.
If we can achieve that, our cash flow will improve, and we will make a profit on every signup, instead of losing money on the cancelled trials.
Researching the adult industry, I see that while lots of people use trials, some very successful sponsors use straight monthly signups (e.g Exploited Teens - 300,000 signups at $29.95). Which do you think is the best approach?
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