We’re in the website services business. Customers pay us monthly for our websites which creates a nice recurring revenue stream, but doesn’t give us much cash upfront. We do a charge a one time setup fee but that offsets our hard costs. We’re considering changing our model to one large flat rate upfront with a very small monthly fee for hosting. Any advice?
I have two recommendations:
Experiment with your new payment model as a "Special Offer" and see how many new clients choose it. You could A/B test it if you get enough search volumes or just swap it out for a month and see if your conversion rates change significantly.
Secondly, Offer the new lower monthly fee to existing clients if they successfully introduce a new client. Give them a pre-written message to share out on their social media accounts.
So a strong offer, metrics to track outcomes and a great bit of copywriting [which we can do] backed with proactive direct marketing will get you the information to make your decision.
Answered 9 years ago
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