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Hi Paras, Since there is a little more than just changing a couple of elements on the page (code for renewals, support costs etc), I want to get an opinion bef

Hi Paras, Since there is a little more than just changing a couple of elements on the page (code for renewals, support costs etc), I want to get an opinion before I dive in. I am sure I am not the first one trying to get an answer to this problem :)

jaddison 17y ago
I would completely echo the original comment - set up your renewal codes and whatever else to do a split test (a/b or multi-variate) - that is the surest way to get the most correct answer for YOUR audience/market. What works for someone else MIGHT work for you, but then again, it might not - and that is a big risk to take. When it comes to pricing and pricing frequency, you can do nothing better than to trust your own customers - they'll respond differently to you than someone else's customers to them. Split test it!
- pvg 17y ago
  One problem with that is you're not dealing with UI preferences but people's money. Users might respond negatively when they find out pricing options available to some were not available to them and they, for instance, ended up with a subscription plan that's not entirely to their liking.
  - prateekdayal 17y ago
    Also .. one more point is that I don't want to necessarily have only monthly/yearly plans. I think its best to have both with some discount if you pay yearly. Again this is just something I have seen on most sites and not experimented with personally
paraschopra 17y ago
Agreed, there can be some hassles. But your audience is very different. What works for software subscriptions might not work for music subscriptions (in your case). My hunch says that you will see decreased sales with monthly $5/mo sales as you have a community where a person needs time to seep in and he would rather prefer to take one time (annual) hit than month-after-month hits. Read Predictably Irrational for details on how monthly v/s annually affects customer psychology. But then it is just my hunch (which is usually very wrong). You can start with a simple survey on checkout (if they prefer monthly) or ask your existing paid subscribers if they are willing to switch.

jaddison 17y ago

I would completely echo the original comment - set up your renewal codes and whatever else to do a split test (a/b or multi-variate) - that is the surest way to get the most correct answer for YOUR audience/market. What works for someone else MIGHT work for you, but then again, it might not - and that is a big risk to take. When it comes to pricing and pricing frequency, you can do nothing better than to trust your own customers - they'll respond differently to you than someone else's customers to them. Split test it!

pvg 17y ago
One problem with that is you're not dealing with UI preferences but people's money. Users might respond negatively when they find out pricing options available to some were not available to them and they, for instance, ended up with a subscription plan that's not entirely to their liking.
- prateekdayal 17y ago
  Also .. one more point is that I don't want to necessarily have only monthly/yearly plans. I think its best to have both with some discount if you pay yearly. Again this is just something I have seen on most sites and not experimented with personally

paraschopra 17y ago

Agreed, there can be some hassles. But your audience is very different. What works for software subscriptions might not work for music subscriptions (in your case). My hunch says that you will see decreased sales with monthly $5/mo sales as you have a community where a person needs time to seep in and he would rather prefer to take one time (annual) hit than month-after-month hits. Read Predictably Irrational for details on how monthly v/s annually affects customer psychology. But then it is just my hunch (which is usually very wrong). You can start with a simple survey on checkout (if they prefer monthly) or ask your existing paid subscribers if they are willing to switch.