I basically cloned the Bingo Card Creator idea in that I sell access to a PDF generating machine. I though long and hard about a recurring fee model, but decided that my customers are price sensitive, and to be fair, I'd have to charge $5/month rather than a one time fee of $30. Sure some people would sign up and continue to pay, but most would cancel after one month and I'd only get $5. I know this because 90% of my customers never log in again after one week.
Additionally, I think a recurring fee would scare customers off in this market, and I go out of my way to tell them it's a one time fee and that they get access forever. If you're wondering, "Do some of them feel a sense of entitlement for essentially... forever?" Oh boy yes, they do!!! But that's OK, I treat them real nicely anyhow.
One thing to consider is that annual fees have the potential for pain, purely given that lots of people forget about them. The only complaints I ever received about TweetingMachine were the people who were rebilled a year later, the tool having left their memories six months prior.
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If you were doing Bingo Card Creator today, would you have went with a subscription model instead of a one time fee?
I basically cloned the Bingo Card Creator idea in that I sell access to a PDF generating machine. I though long and hard about a recurring fee model, but decided that my customers are price sensitive, and to be fair, I'd have to charge $5/month rather than a one time fee of $30. Sure some people would sign up and continue to pay, but most would cancel after one month and I'd only get $5. I know this because 90% of my customers never log in again after one week.
Additionally, I think a recurring fee would scare customers off in this market, and I go out of my way to tell them it's a one time fee and that they get access forever. If you're wondering, "Do some of them feel a sense of entitlement for essentially... forever?" Oh boy yes, they do!!! But that's OK, I treat them real nicely anyhow.
Have you tried making the $30 an annual fee?
Have you tried making the $30 an annual fee?
One thing to consider is that annual fees have the potential for pain, purely given that lots of people forget about them. The only complaints I ever received about TweetingMachine were the people who were rebilled a year later, the tool having left their memories six months prior.
Sounds like a good idea for an A/B test.
Yep!
Why not add it on as an upgrade? Sign up for all the cards you want only $59/year.
How much would you charge and over what period?