non-recurring paysite prices

[basschick]

lately i've been seeing a spate (good word, huh?) of sites with a non-recurring monthly option that is less than $5 more than the monthly recurring. personally i don't like this at all as an affiliate, and i can't see that there's much point to it if you're a paysite owner. keeping them recurring means a regular income stream, and if you can update enough and do what it takes to keep them coming back, i'd rather get the guys to try recurring - if they like the site, they may recur for 3 or 4 months rather than quitting and coming back 2 or 3 months later for 1 month.

[Mickey]

as an affiliate i can see how that setup of non-recurring for a few bucks more suck, but as owner of a small niche site i must admit that i think its needed as there are some people who have been burnt so bad in the past by recurring programs that they will not join recurring again..

[MWCren]

I have always set my non-recurring price $10 higher than the recurring option. I also set the ccbill cookie to 45 days, in the event someones non-recurring membership expires and they join again. Its a tough balance to try and make sure that affiliate traffic gets credit for the sale, and at the same time offer the customer payment options they are comfortable with.

I have seen a growth in one-time signups over the past couple of years, and its now close to 40%. I agree with Mickey, people have learned what recurring means, and they aren't big fans if they've joined a site and can't find a way to cancel it, or the cancellation is not processed promptly ( on purpose, most likely).

If you look at the average revenue generated from a recurring member.. 2.5 months or whatever, and come up with a reasonable amount for a non-recurring membership price, I think you'll be surprised what people will pay for the peace of mind of not worrying about forgetting to cancel. If your non-recurring price is only $5 more, you're leaving money on the table.

[abostonboy]

if they like the site, they may recur for 3 or 4 months rather than quitting and coming back 2 or 3 months later for 1 month.

The goal of any site should be to get them in recurring. However, I feel that many sites have "site hoppers". What I mean by that is they join one site for a month, join "the other site" for a month, then come back.

We have many members that fit that pattern. They have joined our site eight times. Each time they take a month break. I know where they went during the break and so does the site they went to.

Non recur prices I believe should be at least $5 higher than recur. We added a 5 day $20 trial and dropped our monthly membership slightly to get more in the recurring.

I don't quite by the argument that some have been burned in the past. I feel for some they will pay extra for the convenience of not having to cancel. I know I will pay the extra for it. Up to $10.

[basschick]

while i do see that non-recurring joins are growing, i'm wondering 2 things:

1. if the non-recurring option were not there, would a site actually lose any joins or would those non-recurring guys simply choose recurring?

2. if the non-recurring option were for 3 months rather than 1 month, would the site still have the same overall number of joins?

has anyone tested these?

[MWCren]

Thats a very good question, Patti. I split my join buttons a couple of years ago, instead of a single button that looked so lonely on the page, I changed to a recurring button, and a non-recurring button. Sales definitely went up and I can only assume that the budget conscious saw the lower price for recurring and chose that, while the "site hoppers" chose the non-recurring. At that time I also included a 90 day option for each type of membership. I think providing the customer a choice gives them a little more power and makes them more comfortable.

One test I might consider is keeping the 2 button option, but have one a 30 day recurring and one a 90 day recurring. Touting the low average monthly cost of the 90 day membership, translate that into pounds and euro as well.

I'm just a bit of a wuss when it comes to testing that stuff. Some night I'll have an extra glass of courage it give it a whirl.

[basschick]

but why not test with a non-recurring 3 month - or 3 buttons, a monthly recurring, a 3 month recurring and a 3 month non recurring or 6 month?

i love testing. sure, you may lose a few sales, but in the long run you stand to make a lot more by knowing instead of guessing... and i think i'll start a thread about that ;)

[MWCren]

I'm not gonna try it, you try it.
I'm not gonna try it, you try it.

Lets get Mikey, he'll try anything.

LOL. I am getting some courage to go for the 3 button experiment. 30 day recurring, 90 day recurring and 90 day non-recurring. If it works, the average transaction amount should go through the roof. 24.95, 59.95 and 74.95.. hell, that puts the revshare net at PPS levels.

[Mickey]

cant recall why we didnt put a 3 months nonrecurring membership on the site.. good question.. will have to go rethink that one as it might be something we should try..

anyone have any other input regarding this topic ? as i feel we could always do with a bit more debate on topics like this

[abostonboy]

cant recall why we didnt put a 3 months nonrecurring membership on the site..

When you look at paysite pricing, you need to look at what your GPM is for each option.

Many times you can increase your bottom line by 10% or more just by playing with your prices and make your affiliates happy at the same time.