Launching a brand new service, subscription based B2C market. How do you incentivize members to purchase your annual membership over monthly, and secure your profit without worrying about churn?
My product will be $3.99/mo or $39.99/yr - obviously the $8~ savings for the annual membership is one perk.
How do other companies push annual subs and what works for you? I’ve considered offering raffle / contest entries for annual subs - or an additional $5 discount on the annual sub for the first 100~ subs, but want to hear what truly works before committing!
You can set a time limit for an even better deal; you could add on additional months; you can give a free up grade; can make the monthly more costly; make the access to features more limited with monthly
Do monthly - make it extremely expensive. $10 - everyone is always going to take the yearly as the discount is so good.
We’ve done this and built an 8-figure business with this model.
Raise the price of the monthly and/or make the yearly come with more benefits
Vail Resorts is working to make skiing a subscription model. They started this effort a few years ago and have done it by increasing daily lift ticket prices. For example, a single day pass at the window at Vail is something like $200+ but a season pass is $800-1,100.
I’ve done this, it works:
Allow anytime cancellation with a small cancellation fee, it’s a win-win for both parties. Incentivize with the discount and allow them the freedom to cancel and not be completely screwed, you still make money either way. You can scale the cancellation fee to how long they’re into their cycle.
What about offering only a paid yearly option without any monthly or quarterly alternatives? Has anyone tried this, and did it work?