Why offer non-recurring one-time memberships?

Webmaster Discussion
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#1

I’d like to tap into the brain trust here again and ask what the logic is in a paysite offering anything other than a monthly recurring membership option. Is it simply an extra service to the customer or is there some other reason to offer these? (i.e.: Do payment processors require it?)

I’m referring to the non-recurring, “one time only” 30 day memberships, and the 90, 180 and even annual memberships.

From reading some horror stories on other forums about members who buy extended memberships and then cancel before the membership expires… and CCBill gives them a full refund, well, I don’t understand why anyone would offer these. Sure, the percentage of customers who do this is probably small but why even give them the chance?

It always seemed to me like the main goal of running a successful membership site is to get people to subscribe and continue paying a monthly fee so why offer something that does not meet that goal?

I’m also wondering if any paysite owners would be willing to discuss the percentage of customers who buy the one-time memberships vs. a monthly subscription. If the majority of people go for the non-recurring option I guess that would be a good reason to offer it.

#2

Re: Why offer non-recurring one-time memberships?

We don’t offer one-time memberships. We used to and then took them off. Then we put them on again and ran tests. We found that most people were choosing the recurring memberships anyway. And most members wanting one month only were joining at the recurring rate (which is cheaper) and then canceling. So they were in effect getting one month at the recurring price. So it made no sense to us to offer the non-recurring pricing. Our subscription rates never suffered by removing those options.

#3

Re: Why offer non-recurring one-time memberships?

msm, I’m glad you asked this question simply because “curious minds want to know”. Having a sales background, I can understand the purpose of the pricing, it’s to get people to go for the recurring and if not, the sponsor makes a couple extra bucks.

But as DF stated, it really made no difference, because people would sign up for the recurring and then just cancel, still getting the better price for 1 month. People aren’t complete idiots.

I also understand that it provides a “sense of security or peace of mind” to the viewer when seeing an option for “non-recurring” in respect to giving out their credit card info. The viewer feels more assured that his card will only be charged the “one-time”. It’s all a mind game and in this case, with good intentions on the part of the sponsor.

Like many other situations, it’s a double edged sword or catch 22.

Allow me to address it from this stand point. Why use the wording “non-recurring” OR “recurring”? When there are alternatives such as:

“Monthly”
“Monthly rate”
“$ XX.xx per month” (cancel any time)

I hope to see other sponsor programs taking this into consideration.

#4

Re: Why offer non-recurring one-time memberships?

I find that same “problem” of people choosing the cheaper recurring price, then turning around and canceling 5 minutes later. It’s not a large percentage of people, but it happens more than I wish it did. We sort of addressed that on a new site we just launched by making the 1st month’s recurring price about the same price as the 1-time 30 day membership, but it drops the 2nd month to the “normal” recurring price. A la ChaosMen. The site’s too new to really tell if that is working or not.
One reason I offer single subscriptions is because I know a few people who won’t sign up for a site unless it has that option-- cos they always forget they have a membership, it rebills for 2-3 months and then they charge it all back. Fucked up thing to do, but it happens.
I don’t know how much I want to give away, but I’ll just say the percentage of 1-time buyers is definitely high enough for SW to justify keeping the option-- and I get an extra $5 off that sale so why not? You could argue that I might make an extra $20 if the person rebills, but I honestly believe the number of “buy-recurring-then-cancel” would go way higher than it is now and maybe (at best) even itself out.
I’m a little surprised by Dominic’s testing results. Be curious to know how or why you think you saw no difference. I’ll hit ya up on that in Phoenix <wink>

#5

Re: Why offer non-recurring one-time memberships?

Back in the old days when I was running 4 programs, we implemented one-time options and they were a huge success (recurring was $29.95 and 1 month only was $49.95). People are happy to pay $20 extra dollars to ensure they will not be rebilled, and we were happy to take it to make their life that much easier.

For those that don’t offer one-time billing options, you really should look into it. Otherwise IMHO you are leaving money on the table.

#6

Re: Why offer non-recurring one-time memberships?

If a website chooses to have a non recur option it should be set at the GPM goal. If your goal is $70 per member then a $69.95 non recur is fine etc.

#7

Re: Why offer non-recurring one-time memberships?

[QUOTE=SpunkWorthy;112820]
One reason I offer single subscriptions is because I know a few people who won’t sign up for a site unless it has that option-- cos they always forget they have a membership, it rebills for 2-3 months and then they charge it all back. Fucked up thing to do, but it happens.
I don’t know how much I want to give away, but I’ll just say the percentage of 1-time buyers is definitely high enough for SW to justify keeping the option-- and I get an extra $5 off that sale so why not? You could argue that I might make an extra $20 if the person rebills, but I honestly believe the number of “buy-recurring-then-cancel” would go way higher than it is now and maybe (at best) even itself out.
I’m a little surprised by Dominic’s testing results. Be curious to know how or why you think you saw no difference. I’ll hit ya up on that in Phoenix <wink>[/QUOTE]

Search manifest men on this board. Alex was told by a lot of people how great non recur options were and he tried them. It took him months to re-coup what he lost. Almost anyone that has actually tried both and done proper AB testing always stick with recurring only.

If you are good at Excel you can do what ifs at various price points, recur options, and retention rates.

#8

Re: Why offer non-recurring one-time memberships?

I agree.

On some of our direct tours, such as BoyCrush, where the content is uber exclusive and retention is around 15+ rebills per member, we choose not have a non-reccur option

#9

Re: Why offer non-recurring one-time memberships?

Very good point. And I LOVE running stats in Excel… I’m so on it.

#10

Re: Why offer non-recurring one-time memberships?

More sites started offering the non-recurring, one-month option because affiliates screamed their tits off for them. The one-time membership came at a time when more and more people were educated about and nervous about the rebilling process or had been previously “screwed.”

A site can earn more money by charging surfers more money for the option.

Also, when those one-time members sent by affiliates come back to rejoin the site later, the site gets to keep all the money, which may seem great in the short term, but having to encourage people back to the site is a lot of work. Many probably just move on somewhere else.

#11

Re: Why offer non-recurring one-time memberships?

[QUOTE=Richard;112834]I agree.

On some of our direct tours, such as BoyCrush, where the content is uber exclusive and retention is around 15+ rebills per member, we choose not have a non-reccur option[/QUOTE]

Richard as usual nailed it. Boycrush and the Stunner sites do a real good job of keeping fresh exclusive content, so it’s def worth a recurring sub. Lots of sites do not, and the customer who’s had the bad luck to sign up for one of those and wonder all of a sudden why he’s paying $30/month for content from 2010 is not going to like signing up for another recurring membership. I do think a good model – if it’s even possible – is to offer a non-recurring ‘30 day trial’ of sorts with the option to change to recurring for some incentive like if they decide to go to rebill they get a discount.
Btw - if you’re not signed up to Boycrush btw check out the program here (yes, its my aff link) cos it is an excellent program and Richard is beyond helpful. Members just stick, and I can see why.

#12

Re: Why offer non-recurring one-time memberships?

I do think a good model – if it’s even possible – is to offer a non-recurring ‘30 day trial’ of sorts with the option to change to recurring for some incentive like if they decide to go to rebill they get a discount.

That’s an interesting idea. Anyone know if this is possible with CCBill?

#13

Re: Why offer non-recurring one-time memberships?

I don’t believe that it is. You can offer a cancel discount when they cancel. But I am nor sure if you can make it recurring or not on a non recurring membership. (Haven’t offered non recurring membership in a long time.)

I personally don’t think it would work though. Just offer non recur from the start would be the best way. If they want a non recur option make it a multi month.