Quote:
Originally Posted by The Porn Nerd
I've played around with price points this year and found Shap's results to be very similar to mine. Because I run a network with many, many paysites it's obviously different than a single mega-brand like Twistys but dropping prices to $19.95 led to less revenue and sales. Raising them to $39.96 resulted in less sales. So the 'sweet spot' for me and my operation continues to be $29.95 for a monthly recurring and $34.95 for a one-time. I only do a 3 month long-term option because I fear the chargebacks with yearly memberships. Maybe I should revisit that thinking...
(Thanks Shap for the idea of coordinating the yearly option with emails.)
I A-B tested these same exact price points 6 years ago, 4 years ago, 2 years ago and in March of this year. Same exact results every time. (So yeah, I'm done testing price points now. LOL)
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If there is one thing I would really encourage you to do is try yearly memberships. Your chargebacks won't be higher because the volume on them isn't much. I may be wrong but I think Chargeback rate is based on # of transactions not the $$ amount right? So a $100 signup that charges back is the same as a $1 chargeback that charges back right? Maybe i'm wrong.
But regardless far less people chargeback $100 than they would a $1 charge. I think the reality is these are probably committed members. If you are worried about chargebacks start by offering it to ex members by email. 6 months at $75 and 12 months at $99. They are a qualified target market. Go after them and see the results. My guess is you will be thanking me
