Subscription Models

[Stephen]

Hello,

I am in the process of launching a new online platform, I am struggling to decide what subscription model to go for...
Monthly at say $20
Yearly at say $200

Unfortunately the software I am using will not let me offer both, so it is one or the other. Do I try and collect a larger amount up front but risk losing business, or do I try and build a larger monthly subscription base but hope they don't burn and churn after a couple of months!

 

[stackcash]

Why not offer both?

The lower price point will likely allow you to increase the number of months people stick around. The higher price point allows you to get more money upfront - but you'll probably have to do a better job and providing high quality content to keep people for multiple billing periods. You could probably get away with slightly lower quality content with the lower cost.

 

[Stephen]

Why not offer both?

The lower price point will likely allow you to increase the number of months people stick around. The higher price point allows you to get more money upfront - but you'll probably have to do a better job and providing high quality content to keep people for multiple billing periods. You could probably get away with slightly lower quality content with the lower cost.

As I said, the software I am using won't permit both options, otherwise I would!!

 

[stackcash]

Oh, whoops. Sorry.

If you're able to run a ton of targeted traffic, I would just keep the price low and make the money on volume.

 

[lion1978]

I would say that it depends on the target audience and your market.