I'm building a database to sell information on employment contracts and comparisons (terms typically found, what they mean, analytics on what percentage of people have them, etc) and am trying to figure out my pricing strategy. Users submit their information to get our information (similar to Glassdoor), so volume is important early on to continue building up the database. I've always read that 3 pricing options is the way to go - Low, Medium and High. What are the pros and cons of a transactional (one time) model versus a subscription model? How do you price this out if you offer both?

Transactional model:
1- you get all the bucks as soon as possible.
2- to do that you should price correctly your service since if you are low you cannot cover your business while if you are high you are not even able to start.
3- if you choose this model you should and/or could survey your potential clients to understand the range of price they can afford which you be better off at.
4- by this model you cannot acquire your clients' loyalty nor diversify a range of services or functions.
5- this fact does not allow you to profile your customers.
Subscriptional model:
1- you can create (and graphically you should) a rainbow of functions and services from standard to premium to be browsed ( 3 is a good number but 4 are better if you agree with giving a minimum free service)
2- you will be able to profile your costumer base from private to corporate, from age to social and etnographic features.
3- from above, you will be also able to figure out what is the most wanted and how to personalize the final product.
4- if needed you could also pivot finding a by-product without losing the primary service and business.

All the best

Answered 7 years ago

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