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Actually - I have some data. I had a product priced at $2 per month subscription vs $50 one-time fee. More people paid the one-time fee than the subscription.
by maxklein 17y ago
Actually - I have some data. I had a product priced at $2 per month subscription vs $50 one-time fee. More people paid the one-time fee than the subscription.
From talks I've had with people, people prefer to pay a one-time fee than a subscription.
- terrellm 17y agoI think the answer is "it depends". $50 isn't a a lot of money to many people so your product could still considered an impulse buy. If you look at a product that runs $25/mo, a user would look at $625 one-time fee. I'd imagine the one-time purchases would be much lower.
- maxklein 17y agoBut your statement is also making a generalisation. You say $50 is not much money to a lot of people. How do you prove that statement? The one-time fee strategy is a way of pulling people in cheaply and then upselling them. You will not a $25 a month product $650 one time, you make it $99 one time payment, and you optimise your funnel to upsell them within the first 4 months. A $25 a month product will have a LOT of cancellations compared to a $5 a month product.
- DenisM 17y agoAnd among the people I talk to most prefer to live in Seattle. Is it representative of the people at large? Your generalization is completely unwarranted, at best you could derive that "among buyers of X most prefer one-time payment".
- maxklein 17y agoI think my generalisation is quite warranted. My sample size ran to about 30 people, who were not selected by me in any way. If you are selling a product that is a one-time fee and you are happy with the model, then fine, let's agree to disagree. If you are building something and want to make subscriptions or have some interest in my statement being wrong, then you are approaching business with the wrong attitude. In the absence of any information to the contrary, I like to work with the little info I have.