Questions

What are the pros and cons of Program Fee vs. Subscription? Is there an ideal customer type of each model, or does it all depend on your go-to-market strategy?

There are merits to both options, but unless your economics dictate one over the other, the choice should be made by your consumers.

I would suggest that you use landing pages to test both pricing models and let the relative click-through-rates tell you which is the right way to go.

Validate the consumer preferred model before you commit to it. You may discover one as a clear winner overall, or that one wins out in a key market segment. You may also find that the distribution is fairly even. Keep in mind that it is possible to utilize both - think Amazon selling audio books, but also offering Audible Subscriptions.

Ultimately, you'll want to make sure that the economics work for you - and focus on maximizing customer LTV (life time value - ie the total you'll earn per customer over the lifetime of that customer).

I'm happy to explain the process of testing these (even before the product exists) in detail. Just shoot me a message.


Answered 9 years ago

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