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I don’t understand why it’s just a one time payment? If you’re doing a micro-startup, you need valuable tools and insight today. You don’t care about 12 months
by zaroth 4y ago
I don’t understand why it’s just a one time payment?
If you’re doing a micro-startup, you need valuable tools and insight today. You don’t care about 12 months from now. You certainly don’t care about $99 twelve months from now…
If it was $99/yr would it decrease your conversion rate even a little bit?
For fun, add a toggle to let people set it to not auto-renew and Tell HN a month from now how it went?
Don’t actually implement any recurring billing code until 11 months from now, just save sign-up date and what renewal preference they selected in a database somewhere?
Possibly never bother even writing the code to kick out people who don’t pay for their renewal?
Actually, maybe frame it as a way for micro-startups that succeed with your help, they will basically have a way to keep donating $99 a year to a tool that really helped them, even if they outgrow it?
Hmmm… pricing is hard. But lifetime service memberships inevitably become an albatross don’t they?
I can tell you this - a $99 customer has lifetime value of $99, but a $99/yr customer has lifetime value of $99 * 1.0 / C. Where C is churn and worst case churn is 1.00 but realistically will be less than 1.00 (100%).
In any case, it would be hugely interesting to play with that pricing model!
- TheSmiddy 4y ago>> If you’re doing a micro-startup, you need valuable tools and insight today. You don’t care about 12 months from now. You certainly don’t care about $99 twelve months from now… Exactly, the value is in the present, not in the future. This is so clearly obvious that anybody purchasing it knows that there's no value exchanged for the recurring fee and thus the recurring fee looks like a shady cash grab and is more likely to result in less overall sales.