Aug 26, 2018
In episode #756, Eric and Neil
discuss whether it is better to charge a monthly fee or a one-time
fee. Tune in to hear which is more lucrative.
TIME-STAMPED SHOW NOTES:
- [00:27] Today’s Topic:
Is It Better to Charge a
Monthly Fee or a One-Time Fee
- [00:40] If you have a monthly
fee, look at the lifetime value of your customer.
- [00:45] Think about charging a
one-time that is more or equivalent to your LTV and see if that
generates more revenue.
- [01:05] People like the concept
of a one-time fee.
- [01:24] It’s a much more
appealing marketing message.
- [01:33] You have to be
- [02:37] If your average
customer only lasts one year, it’s more beneficial to charge up
- [02:56] Neil tested out
up-front payment and a payment plan and found that up-front was the
best system for his business.
- [03:25] If you charge a
one-time fee for a lot of stuff, this holds greater
- [04:05] It’s all about the
lifetime value of your customer: this is the best way to determine
your pricing structure.
- [04:43] If you’re doing a
subscription thing, you can use a dashboard that will track your
clients and payments.
- [05:04] Price Intelligently is a great resource.
- [05:18] If you want to try a
monthly fee, consider sticking with an up-front fee, but test it
- [05:40] That’s all for
- [05:44] If you could take two
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