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

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: NeilPatel.com Quick Sprout Growth Everywhere Single Grain Twitter @neilpatel Twitter @ericosiu Learn more about your ad choices. Visit megaphone.fm/adchoices See omnystudio.com/listener for privacy information.