Something came across my mind today.
Imagine that I'm starting a new service, let's say a Steam-like service except subscription based. That is, you pay a monthly subscription to play an unlimited number of games.
Out of the following 3 pricing methods, which do you think would net the most signups (not revenue) on the first day?
Cheap! $20 per month all-you-can-play!
Opening sale!!! Register NOW for 25% discount! $20 per month for life for all-you-can-play - TODAY ONLY (regular price $25/month)
AMAZING 50% OFF OPENING SALE - TODAY ONLY!!! Register NOW for $24.99 per month for life (regular price $49.98/mo) for UNLIMITED games!
The first one seems very fair but consider the movements of spotify and netflix, they have an unlimited service for around 10$. If you are the cheapest source for gamez on the net you will dominatethe competitionz in a faster timeframe. In this modern day economy, teenagers rely on their parents for money. If you can satisfy the penny pinching motherz breeding the American style otaku, you can expect them to make automatic payments with their bank cardz.
20$ seems more like adult spending for well developed shooter gamez
Besides I know big game companies won't trust a new online service to handle their games right away.
I'd say a combination of the third option with slightly less wording, and perhaps a slightly more believable price. Because to be honest, $50/month would have people calling bullchocolate. If the "real" price was $25, it'd be slightly more reasonable.
The "Opening Sale" tagline would get a few people, I'd wager, and you'd be able to run the deal for a little longer to let word get out - perhaps mentioning that it's for three days only before the service starts?
Senseito7 Wrote: [ -> ]The idea that bills won't be getting more expensive helps the 1st too..
The other options won't go up, assuming you sign up on the day (since it's a recurring discount).
Silvertie Wrote: [ -> ]Because to be honest, $50/month would have people calling bullchocolate.
Really? I don't really use Steam, but from what I've seen, highly rated new games are typically around the $50-$60 each mark, so if you get at least one of these a month, it's already paid for itself. I guess on the other hand though, you do have to keep paying to retain access to the games.
Anyway, that was just a hypothetical price - yeah, assume whatever you believe is more reasonable.
Silvertie Wrote: [ -> ]The "Opening Sale" tagline would get a few people, I'd wager, and you'd be able to run the deal for a little longer to let word get out - perhaps mentioning that it's for three days only before the service starts?
Yes, it would need marketing for people to know, so I guess the assumption is that this would be well advertised in advance.
The timeframe would probably need to be adjusted depending on how well known it is though, as you've said.
Silvertie Wrote: [ -> ]Because to be honest, $50/month would have people calling bullchocolate.
Really? I don't really use Steam, but from what I've seen, highly rated new games are typically around the $50-$60 each mark, so if you get at least one of these a month, it's already paid for itself. I guess on the other hand though, you do have to keep paying to retain access to the games.
Anyway, that was just a hypothetical price - yeah, assume whatever you believe is more reasonable.
People are cheap when it comes to subscriptions. Then again, I can't believe the deal you get for €10 with Spotify...
Silvertie Wrote: [ -> ]Because to be honest, $50/month would have people calling bullchocolate.
Really? I don't really use Steam, but from what I've seen, highly rated new games are typically around the $50-$60 each mark, so if you get at least one of these a month, it's already paid for itself. I guess on the other hand though, you do have to keep paying to retain access to the games.
Anyway, that was just a hypothetical price - yeah, assume whatever you believe is more reasonable.
People are cheap when it comes to subscriptions. Then again, I can't believe the deal you get for €10 with Spotify...
shameless advertisement...that's a paddlin'
I got spotify premium as well because you tweeted so much about it! Anyways love spotify. XD