Episode #756
Is It Better to Charge a Monthly Fee or a One-Time Fee
August 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 testing!
  • [02:37] If your average customer only lasts one year, it’s more beneficial to charge up front.
  • [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 appeal.
  • [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 out first.
  • [05:40] That’s all for today!
  • [05:44] If you could take two minutes out of your day, we are trying to improve the listening experience for you, so go to Singlegrain.com/survey and help us gain some insight into what matters to our listeners.

Leave some feedback:

  • What should we talk about next? Please let us know in the comments below.
  • Did you enjoy this episode? If so, please leave a short review.

Connect with us:

Discover Latest Episodes

Episode
How I bought a podcast, The valuation of podcasts, The risk of being overtaken & more
February 23, 2024

In episode #2684, we delve deep into the value of podcasting, particularly from an M&A perspective as our guest, Ralph Burns, discusses purchasing a podcast and its impact on business. ...

Episode
Yeezy $0 production spend on Super Bowl ad to make $19.7m, Super Bowl Ad or MrBeast Ad?, Microsoft, OpenAI, Google and others agree to combat election-related deepfakes
February 22, 2024

In episode #2683, we discuss the effectiveness of Super Bowl ads and the rise of deepfake technology. We delve into the astronomical costs of Super Bowl ads, questioning their return on investment (RO...

Episode
Syed Balkhi’s Unconventional Wealth Building Strategies
February 21, 2024

Syed Balkhi and Eric Siu discuss the power of compounding and the importance of maintaining friendships with other high performers. Syed shares his philosophy of giving unconditionally and compounding...