Is It Better to Charge a Monthly Fee or a One-Time Fee

[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!

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Is It Better to Charge a Monthly Fee or a One-Time Fee | Ep. #756