Google
 

Re: One time vs. Recurring Billing

From: Marco Janeczek <info_at_webadvertising.ca>
Date: Mon 06 May 2002 12:21:27 -0600

That depends.

1) How much is your service? Lets say you are a daily
newsletter publisher (investment) and you want to introduce
pay-for-content. So, if lets say you say $9/month... people
will buy it (cheap), but if you say $ 100 / year people will
not. The catch is when they subscribe to offer them just one
option to pay-yearly / semi-anually. In this way you get more
time to improve (if you have to), and if they like it they
will extend their subscription.

Remember. $9 is around the price of two good magazines. But
the content is provided daily (many times), so its worth it.

Lets say you charge your newsletter $9. You have 1000
subscribers. If they pay yearly you give them 10% discount.

MONTHLY YEARLY
1000 x $9 x 12 1000 x $9 x 12 - 10%

Revenue $108,000 Revenue $97,200

The only difference here is that in yearly you are guaranteed
that sum, in monthly you are not. Maybe 50% of subscribers
will not continue after the first two months or even one month.

By paying a yearly fee (if reasonable price) you have a good
way to improve your content more so that the consumer renews the
subscription.

>From a business model, for a magazine its better a yearly
billing, but for a service its better a monthly billing. Please
specify the exact service.


2) Monthly, Quarterly, Yearly ? This question is also to be
determined exactly if you specify the service/product you are
providing. If its stock alerts, business news, hosting... all
that differs.

Marco Janeczek
WebAdvertising.ca
a Mazata.com Company








Received on Mon May 06 2002 - 13:21:27 CDT


HOW TO JOIN THE ONLINE ADVERTISING DISCUSSION LIST

With an archive of more than 14,000 postings, since 1996 the Online Advertising Discussion List has been the Internet's leading forum focused on professional discussion of online advertising and online media buying and selling strategies, results, studies, tools, and media coverage. If you wish to join the discussion list, please use this link to sign up on the home page of the Online Advertising Discussion List.

 


Online Advertising Industry Leaders:

Local SEO with Video
Houston SEO
Houston Web Design

Add your company...

Local SEO with Video
 



 


 
Online Advertising Discussion List Archives: 2003 - Present
Online Advertising Discussion List Archives: 2001 - 2002
Online Advertising Discussion List Archives: 1999 - 2000
Online Advertising Discussion List Archives: 1996 - 1998

Online Advertising Home | Guidelines | Conferences | Testimonials | Contact Us | Sponsorship | Resources
Site Access and Use Policy | Privacy Policy

 
2323 Clear Lake City Blvd., Suite 180-139, Houston, TX 77062-8120
Phone: 281-480-6300
 
Copyright 1996-2007 The Online Advertising Discussion List, a division of ADASTRO Incorporated.
All Rights Reserved.