"For a fee" business model

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"For a fee" business model

User/member pay a yearly fee

henry0

2:11 pm on Oct 30, 2006 (gmt 0)

Usually I dev for my clients
This time I will develop one for my own good!
As per my search this could have a huge national (USA) potentiality
I envision it without any popup, advertising, AdWords and similar. No banners and nothing in the same range.
It will be part unique content and indeed lot of users’ content generated, offer many services etc..

It should have the capability to entice users to sign for it and pay a mere $12.00 yearly. (This is how the biz model will be built upon)

Now for the question:
In a “for a fee model” will you envision a trial period or no trial period
If trial is agreed on will you set it for free for 1 week, 1 month, quarterly?
Which kind of conversion could be envisioned?

I understand that without knowing about what I intend to do it is quite hard to answer my quest.

Perhaps you have heard of such biz model or you know where I could read about such a biz model.
Thanks

rj87uk

2:14 pm on Oct 30, 2006 (gmt 0)

One of the major teen hangouts (profileheaven) has something like this model. Everythings free however they charge a small fee for more facilities like search and a few other things.

henry0

3:03 pm on Oct 30, 2006 (gmt 0)

rj87uk
Happy 666 post!

pixeltierra

1:53 am on Oct 31, 2006 (gmt 0)

I have never done this, but I personally would approach it like catching fish. Bait the hook with lots of bait, so that you know it will work. Then gradually test variations of the bait, and compare it to the original values.

I think the only way to go about this is by careful variations and note keeping, and see what works best.

P.S. I've also for the first time decided to do my own site on a "subscription" basis. Only mine will be hard to get user content. I'll have to make it myself. : ( And it could take a long time.

stajer

2:16 am on Oct 31, 2006 (gmt 0)

I have done this a few times and found the free trial never works as well as giving away some content/features for free. But, put links to the paid content/features all over and if an unpaid person clicks that link, give them a signup screen. Eventually, they are more likely to signup because they see how often they are interested in paid content.

See the home page of webmasterworld for an example - there are links to all the forums and interesting posts from all forums though you can't see anything from the supporters forums without paying.

henry0

12:11 pm on Oct 31, 2006 (gmt 0)

pixelierra good luck!

stajer, this is an interesting approach.

Since you have done it a few times did you use that model every times?
Any input on conversion rate?
Thanks

rj87uk

12:15 pm on Oct 31, 2006 (gmt 0)

rj87uk
Happy 666 post!

I missed it :(

txbakers

12:25 pm on Nov 2, 2006 (gmt 0)

This is my model and it has worked great. I offer a 60 day free trial, which I can extend if needed. When they pay or are invoiced, we activate the account to "live" and the customer uses it until expiry date.

The original registration date is the renewal date, so it's not a 60 days free then it starts. It starts the day you sign up, and you get 60 days to evaluate.

henry0

2:45 pm on Nov 2, 2006 (gmt 0)

TxBakers,
I was weighting in between you option similar to mine
and stajer's one

I will go with something in the range of yours and mine, it is closer of my initial toughts
Thanks.

Jimmyco

9:52 pm on Nov 2, 2006 (gmt 0)

There are a couple of great dating "match" websites that let you look through profiles, but you can't contact anyone without paying.

I would use this type of model. let them in, but remove the most valuable feature until they pay.

aspdaddy

9:09 pm on Nov 14, 2006 (gmt 0)

It doesnt matter how they pitch the free trial its the quality of the goods that does it and how much you need them, make your cusomers need it an they will pay - free trial or not.

For example I will trial dvd rental sites as long as possible becuase I *like* free dvds, but when I *need* realtime credit checks for new customers Ill quickly sign up and pay for that.

leadegroot

12:20 pm on Nov 15, 2006 (gmt 0)

one alternative is a flickr-style model - a free account or a paid account, with extra features and 'status' (pro logo) for paid users.