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Which pricing and business model to use?

Discussion in 'General Marketing' started by Eduard, May 17, 2011.

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  1. #1
    Hi,

    I’d love to get your feedback on 2 different pricing and business strategies, which one you think will work best and why.

    Strategy 1:

    Front end product: $29.95 ebook with forced continuity (membership site)
    Continuity program: first month free and then $16.95/month
    Affiliates: 75% commission of initial sale and then 25% of recurring billing

    Strategy 2:

    Front end product: $47 audio guide with forced continuity (membership site)
    Continuity program: first month free and then $17/month
    Affiliates: 75% commission of initial sale and that’s it

    Note 1: I will be using ClickBank so the commission for the initial sale, unfortunately, can be no more than 75% (unless I find some trick I can use here).

    Note 2: the niche is related to shyness/ dating/ social life.

    Your feedback is highly appreciated.
     
    Eduard, May 17, 2011 IP
  2. AfterHim.com

    AfterHim.com Peon

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    #2
    As a buyer I wouldn't want audio. I want something I can read, that's my personal preference, maybe a video, but not audio.
    As an affiliate, if you're selling a recurring product, I would expect to get paid every month.
     
    AfterHim.com, May 17, 2011 IP
  3. mygold

    mygold Peon

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    #3
    I think strategy 2 will more effective to grab the attention of buyer. In this time human being are always busy they have little time to read. So audio will be convenient for them.
    Even Pricing almost same after one month member will have to pay $17 for audio and $16 for eBook so it does not vary most!
     
    mygold, May 18, 2011 IP
  4. pmbrent

    pmbrent Greenhorn

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    #4
    I think your initial pricing strategy for both is too high, if you have a lower initial price and a small monthly fee you will have less refunds and cancellations.
     
    pmbrent, Jun 22, 2011 IP
  5. John Galt

    John Galt Peon

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    #5
    Look Eduard, you're doing it wrong.

    What can you expect anybody here to give you beyond (worthless) opinions? There is no way anybody here can know what will be best for your offer, traffic sources or niche. How do you find out what business model is best? TEST. How do you know if your market will like an audio program? TEST. How do you know what price the traffic will bear? TEST. Nothing else matters besides real data bro, and you're only going to get that when you fire up some traffic and try some stuff.
     
    John Galt, Jun 22, 2011 IP